Canadian senior housing markets are witnessing a surge in both transactions and investment, with occupancy reaching an average of 94%, a figure that marks a 2.5% increase compared to the same period in the previous year. This data comes from a fresh Cushman & Wakefield report, which indicates that stakeholders have already finalized $8 billion worth of deals involving care properties throughout 2026. This figure surpasses the previous peak of $4.9 billion that was established back in 2007.
Canadian operators in the senior living sector are projecting that they will achieve a 95% occupancy rate by the end of 2026. Notably, operators based in Alberta have seen their average occupancy rise by 25 percentage points since 2021. Meanwhile, regions including Ontario, British Columbia, and Quebec have improved their averages by 13 percentage points. However, Ontario is currently trailing the national average, as it began with a lower baseline occupancy rate in 2021 compared to other provinces.
Providers in Canada are planning to increase resident rent by an average of 4% to 7% starting next year, relative to current rates. The report’s authors suggest that growth above the trend line will remain a key characteristic of the sector. These broader trends in Canada mirror the situation in the United States. Sean McCrorie, the vice chairman and practice leader of seniors housing and healthcare at Cushman & Wakefield, observed that occupancy, rent increases, and investment volume show similar patterns in both nations.
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McCrorie further stated that Canada has firmly entered a growth phase. He noted that occupancy is nearing record highs, rent growth is speeding up, and investment activity has hit unprecedented levels. These factors, combined with a shortage of new supply, are strengthening the case for senior housing as a sustainable long-term investment.
Construction start trends in Canada are comparable to those in the U.S., with the number of starts falling short of previous forecasts. The firm predicts that new inventory will comprise less than 1% of the market by year’s end. Due to this constraint, construction is expected to stay tight, which should help sustain occupancy and rental gains. Heather Payne, the senior vice president at Cushman & Wakefield, remarked that while development opportunities are significant, introducing new supply to the market remains a complex and time-consuming process.
Furthermore, the senior population is growing, and the reliance on family caregivers is decreasing, which makes senior living a more viable choice for many. Currently, the caregiver-to-resident ratio stands at about 3-to-1 as of 2025, but this figure is projected to fall below 2-to-1 by 2040. The influx of U.S. investment continues to grow annually, with healthcare REITs and private-equity firms leading the charge in purchasing senior housing assets in Canada.
