Ontario rental market data
Toronto holds a large share of Ontario’s rental housing: of the 754,038 purpose-built apartments and row houses CMHC surveyed in the province’s urban centres, 343,539 (46%) are in the Toronto CMA. The table below is CMHC’s province-wide summary for apartments in buildings of three or more units; the hub explains how these figures are measured.
| Measure (October 2025) | Ontario | A year earlier |
|---|---|---|
| Vacancy rate | 3.2% | 2.7% |
| Average 2-bedroom rent paid | $1,827 | $1,758 |
| Turnover rate (units with a new tenant in the year) | 11.2% | 9.4% |
| Rent change for the same 2-bedroom units (fixed sample) | 3.7% | 4% |
Source: CMHC Rental Market Report data tables, Table 1.0 (apartments in privately initiated structures of three or more units, centres of 10,000 people or more).
| Average asking rent (August 2026) | Ontario |
|---|---|
| Studio | $1,677 |
| 1 bedroom | $1,983 |
| 2 bedroom | $2,457 |
| 3 bedroom | $3,038 |
Source: Rentals.ca / Urbanation National Rent Report, apartments and condos listed for rent (August 2026). Asking rents are what a new tenant is quoted, so they run above the CMHC averages paid by all tenants.
Ontario against Canada and the other provinces
Ontario’s average 2-bedroom rent of $1,827 in October 2025 was 18% above the Canadian average of $1,550, the second-highest of the ten provinces; only British Columbia was higher, at $2,065. Rent growth was slower: on units surveyed in both years, Ontario’s 2-bedroom rents rose 3.7%, against 5.1% nationally, the fourth-lowest increase of the 9 provinces with a published figure. The vacancy rate was 3.2% (Canada: 3.1%), and only 11.2% of units changed tenants during the year, against 12.8% for Canada and 27.2% in Alberta.
Average rent by city (Ontario)
| Centre | Vacancy rate, October 2025 | A year earlier | Average 2-bedroom rent paid |
|---|---|---|---|
| Toronto | 3.0% | 2.5% | $2,046 |
| Ottawa-Gatineau (Ont. part) | 3.0% | 2.6% | $1,926 |
| Hamilton | 3.6% | 2.4% | $1,656 |
| Kitchener-Cambridge-Waterloo | 4.1% | 3.6% | $1,832 |
| London | 4.0% | 2.9% | $1,651 |
| St. Catharines-Niagara | 3.9% | 3.8% | $1,527 |
| Oshawa | 3.7% | 3.6% | $1,754 |
| Windsor | 3.7% | 3.3% | $1,454 |
| Barrie | 4.3% | 3.4% | $1,755 |
| Guelph | 3.1% | 1.9% | $1,802 |
| Kingston | 2.4% | 2.9% | $1,764 |
| Greater Sudbury/Grand Sudbury | 1.2% | 1.5% | $1,558 |
| Brantford | 3.5% | 2.3% | $1,619 |
| Peterborough | 3.1% | 3.3% | $1,518 |
| Thunder Bay | 4.0% | 3.2% | $1,495 |
| Belleville - Quinte West | 3.4% | 3.5% | $1,484 |
Source: CMHC Rental Market Report data tables, Table 1.0 (apartments in privately initiated structures of three or more units). Ottawa-Gatineau is split by province.
City pages: Toronto, Ottawa, Hamilton, Kitchener-Waterloo, London.
Toronto’s average 2-bedroom ($2,046) cost $592 a month more than Windsor’s ($1,454). Vacancy ranged from 1.2% in Greater Sudbury to 4.3% in Barrie. Same-unit rent growth also varied: 6.8% in Thunder Bay, 3.4% in Toronto and 1.6% in Hamilton.
What CMHC says is behind the softer market
CMHC’s Rental Market Report singles out Ontario on two counts:
- Fewer young adults. Study and work permit holders aged 15 to 34 drive much of the demand for rentals, and CMHC says British Columbia and Ontario saw the largest declines in the young adult population. Its chart of Statistics Canada estimates shows Ontario’s population in that age group changing by -1.3% in the year to July 2025, after growth of 6.6% two years earlier.
- Trade uncertainty. In Ontario’s main manufacturing corridor, CMHC says purpose-built vacancy has generally reached about 4%, well above the national average. Kitchener-Cambridge-Waterloo, London and Windsor all had vacancy rates of 3.7% or more.
The report also lists Ottawa among the markets where affordability worsened in 2025, and Toronto among those where the rent-to-income ratio improved. Toronto’s rental supply barely grew this year, CMHC adds, though more rental starts point to new supply in the coming years.
New tenants and sitting tenants across Ontario
Across the Ontario centres in CMHC’s survey, a 2-bedroom that changed tenants rented for $2,167 on average in October 2025, and one where the tenant stayed for $1,766: a $401 monthly gap.
What a 2-bedroom takes from an Ontario income
Keeping the provincial average 2-bedroom rent under CMHC’s 30% shelter-cost line takes a gross household income of $73,080. Ontario’s census median household income was $91,000 for 2020, owners and renters together, so the requirement is 20% below it. Asking rents are higher: Rentals.ca’s August 2026 average for an Ontario 2-bedroom listing was $2,457, which needs $98,280, 8% above the median. The income is from 2020 and the rents are recent, so the comparison is approximate. The rent affordability calculator does it for one household.
Listing prices have been falling for a while: Rentals.ca’s Ontario average for all unit types, $2,248, changed by -3.5% over the year and by -9.9% over three years.
Rules on rent increases in Ontario
- The rent increase guideline is 2.1% for 2026 and 1.9% for 2027.
- Units first occupied for residential purposes after November 15, 2018 are exempt from the guideline.
- Rent can go up once every 12 months, with at least 90 days' written notice on the proper form.
- The guideline doesn't apply when a unit is rented to a new tenant: the landlord and new tenant agree on the rent.
- The guideline also doesn't cover community housing units, long-term care homes or commercial properties, and social housing has its own rules.
- A landlord can apply to the Landlord and Tenant Board for approval to raise the rent by more than the guideline.
Source: Ontario government.
Annual limit by year
| Year | Limit on increases |
|---|---|
| 2027 | 1.9% |
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% |
| 2020 | 2.2% |
Deposits
- The only deposit a landlord can collect is a rent deposit; a separate damage or security deposit isn't allowed.
- The landlord has to ask for it on or before entering into the tenancy agreement.
- It can't be more than the lesser of one rent period's rent and one month's rent.
- When the rent lawfully goes up, the landlord can ask for an extra amount to bring the deposit up to the new limit.
- The landlord pays interest on it every year, at the rent increase guideline in effect when the payment is due.
- It must be applied to the rent for the last rent period before the tenancy ends.
The Ontario tenant rights guide covers repairs, entry, evictions and the Landlord and Tenant Board. Rent increase rules by province compares Ontario’s guideline with other provinces’ caps, and getting a security deposit back compares deposit rules.
Related pages
- Toronto Rental Market: rents by zone and rented condos
- Ottawa Rental Market: the Ontario side of Ottawa-Gatineau
- Income in Ontario: provincial income data
- Ontario Housing Market: home prices and trends
Sources
- CMHC Rental Market Report data tables: national Tables 1.0 (provinces and centres), 5.0 (rental universe) and 6.0 (new and sitting tenants)
- CMHC Rental Market Report, major centres: national and Ontario commentary, Figure 3
- Rentals.ca National Rent Report: provincial asking rents
- Statistics Canada table 98-10-0061: census household income
- Ontario rules on rent increases
- Residential Tenancies Act, 2006: rent deposits