Senior housing transaction and investment activity is surging in Canadian markets while occupancy climbs.
That’s according to a new report from Cushman & Wakefield covering of the Canadian senior housing market. The report’s authors noted that stakeholders completed $8 billion in Canadian senior housing and care property transactions so far in 2026, up from the previous high of $4.9 billion from 2007. Occupancy in Canadian region to an average of 94%, representing a 2.5% gain since the same period last year.
Canadian senior living operators are on track to reach 95% by the end of 2026, according to the analysis. Operators in Alberta have grown average occupancy 25 percentage points since 2021, Ontario, British Columbia and Quebec improved average occupancy by 13 percentage points. Ontario, meanwhile, is lagging behind the national average and started with a lower base compared to other markets in 2021.
Canadian providers are increasing rent for residents next year by an average of 4% to 7%versus today’s rates. Above-trend rent growth is anticipated to remain a “defining feature” of senior living in Canada, according to the report’s authors.
The general themes in the Canadian market are playing out similarly to what the U.S. is experiencing, Sean McCrorie, vice chairman and practice leader of seniors housing and healthcare at Cushman & Wakefield, told Senior Housing News.
“Directionally, occupancy, rent/REVPOR growth, NOI margins, construction starts, new completion rates and year-over-year trends related to investment dollar volumes track similarly in the two countries and are very highly correlated,” McCrorie said.
McCrorie added Canada is now moving firmly into a growth phase, according to a press release.
“Occupancy is approaching record levels, rent growth is accelerating and investment activity has reached unprecedented levels. Combined with limited new supply, these fundamentals are reinforcing seniors housing as an increasingly attractive long-term investment opportunity,” McCrorie said in a press release.
New construction start trends in Canada are similar to what is seen in the U.S. as well with the amount falling below Cushman & Wakefield’s previous expectations, and is predicted to be below 1% new inventory by the end of the year.
In the meantime, construction is expected to remain constrained, similar to U.S. markets, leading to continued occupancy and rent gains.
“There is a significant development opportunity ahead, but bringing new seniors housing supply to market remains complex and time intensive,” Heather Payne, senior vice president of seniors housing and healthcare at Cushman & Wakefield, said in the release. “Longer term, Canada will need substantially more new development to accommodate its rapidly expanding senior population.”
Alongside a growing population aged 75 and up, the ratio of family caregivers is trending downwards, making senior living a more attractive option for prospects. Currently around a 3-to-1 ratio as of 2025, it is expected to dip below 2-to-1 by 2040.
Additional investor interest from the U.S. continues to expand as well.
“U.S. investor interest in Canada continues to expand year over year, and U.S. healthcare REITs and private-equity firms are among the most active buyers in the Canada marketplace for seniors housing assets,” McCrorie said.
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