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London Ontario Rental Market Data 2026 | Average Rent & Vacancy Rates

Updated

London rental market data

London’s purpose-built rental market loosened sharply. CMHC’s October 2025 vacancy rate for the London CMA, which also takes in St. Thomas and Strathroy-Caradoc, was 4.0%, its highest in 15 years by CMHC’s count, after 2.9% the year before. Rents still climbed: the average 2-bedroom reached $1,651, and the same-sample increase was 4.1%, down from 6.2% a year earlier. These are CMHC figures for apartments in buildings of three or more units; the hub explains how the rent measures differ.

Average rent by bedroom type

Unit typeAverage rent paid, all tenants (October 2025)Average asking rent, new tenants (second quarter of 2026)
Bachelor / studio$1,097$1,300
1 bedroom$1,384$1,560
2 bedroom$1,660$1,920
3 bedroom+$1,970$2,400

The first column is CMHC's average for occupied units in apartment buildings of six or more units, so it includes long-term tenants paying below-market rents. The second is Statistics Canada's average of listed rents, closer to what you'd be quoted if you moved now.

Listed rents have gone the other way: Statistics Canada’s 2-bedroom asking rent for London was $1,920 in the second quarter of 2026, 4.0% lower than a year earlier.

Rents and vacancy by London zone

CMHC divides the City of London into zones and reports St. Thomas, Strathroy-Caradoc and the rest of the CMA separately (October 2025, apartments in structures of three or more units).

AreaVacancy rateAverage 2-bedroom rentAverage rent, all unitsApartments surveyed
Downtown North5.8%$1,987$1,7625,963
Northeast4.5%$1,344$1,2995,379
North3.3%$2,019$1,8315,210
Northwest4.5%$1,673$1,5559,746
Southwest2.6%$1,648$1,5586,967
Central South4.8%$1,549$1,3742,477
South2.3%$1,602$1,5155,376
Eastnot published$1,361$1,2784,333
City of London (the zones above)4.0%$1,657$1,54345,451
St. Thomas3.7%$1,606$1,4422,919
Strathroy-Caradoc2.1%$1,492$1,371700
Rest of the CMA1.8%not published$1,558132
London CMA4.0%$1,651$1,53449,202

Source: CMHC Rental Market Report data tables, London workbook, Tables 1.1.1 to 1.1.3. “Not published”: CMHC suppressed the figure or rated it poor (use with caution).

North London posted the highest 2-bedroom average of any zone, $2,019, and the Northeast the lowest, $1,344: a $675 spread inside one city. Downtown North had the highest vacancy rate, 5.8%. Around the two campuses, the Northwest, around Western University, went from 2.0% to 4.5%, and the Northeast, where Fanshawe College is, stayed high at 4.5%. Outside the city, St. Thomas averaged $1,606 for a 2-bedroom with 3.7% vacancy.

Fewer students, a weaker economy, record completions

The Rental Market Report names three causes for London’s higher vacancy, and says weak demand pushed it above CMHC’s own forecast:

  1. International students. Student demand had propped up the market for most of the past decade. A sharp fall in enrolment raised vacancy around Western University, and it stayed high near Fanshawe College.
  2. Jobs and permits. CMHC’s market intelligence points to non-permanent residents whose work permits expired without renewal, and to weakness in manufacturing and transportation, both hit by tariffs.
  3. Supply. The purpose-built apartment stock grew 2.1%. Builders completed 2,585 rental apartments from January to September alone, beating the previous year’s record.

CMHC also notes that softer conditions made it easier for low- and middle-income renters to move, with vacancy up in the cheapest two rent quartiles and more turnover in older, lower-cost buildings, though lower-priced vacancies remained below the CMA average. The CMA turnover rate was 15.1%, up from 13.4%.

Rented condos are a different story. CMHC counted 3,091 condo apartments rented out, 35.7% of London’s condo stock, and their vacancy rate was just 0.2%. A rented condo 2-bedroom averaged $2,132, 29% above a purpose-built one.

What new tenants pay compared with long-time tenants

CMHC reports that the rent on a newly leased 2-bedroom fell slightly this year. Its table puts it at $1,878, against $1,920 in October 2024, while tenants who stayed paid $1,570 (from $1,483). The premium for moving into a 2-bedroom was $308 a month; for a bachelor it was $238 and for a 3-bedroom $514.

Vacancy rate trend

London vacancy rate, apartments in buildings of 6+ units (CMHC, October each year)

Source: CMHC Rental Market Survey via Statistics Canada table 34-10-0127.

London rent and household income

CMHC considers housing affordable when it costs less than 30% of before-tax household income, counting the rent (or mortgage payments, property tax and condo fees) plus electricity, heat, water and other municipal services. The figures here count the rent alone, so with utilities the income needed is higher. For rent to stay at or under 30% of gross income, CMHC’s affordability line, London’s average 2-bedroom ($1,651 a month) needs a household income of $66,040. London’s census median household income was $79,500, measured for 2020 across owners and renters, which leaves the requirement 17% below the median. At the current $1,920 asking rent the income needed is $76,800, 3% below the median. London’s median is 13% below Ontario’s $91,000, so the same rent takes a larger share of a typical London household’s income than of a typical Ontario household’s. The rent and income come from different years. Try the rent affordability calculator with your own figures.

London next to Ontario and Canada

London’s 2-bedroom average on CMHC’s three-units-and-over survey was 10% below the Ontario figure ($1,827) and 7% above the Canadian one ($1,550). It ranked eighth-lowest of 16 Ontario centres and 17th-highest of 43 metro areas; Hamilton’s was $1,656. London’s 4.0% vacancy compares with 3.2% for Ontario and 3.1% for Canada.

Rules on rent increases in London

Ontario's rent increase guideline is 2.1% for 2026 (units first occupied after November 15, 2018 are exempt). An increase can come once every 12 months, after at least 90 days' written notice. In Ontario the only deposit a landlord can collect is a rent deposit, no more than one month's rent (or one rent period, if that is shorter); it must be applied to the last rent period before the tenancy ends, and the landlord pays interest on it every year at the rent increase guideline rate.

Guideline history: Ontario rental market. Tenant rights, from repairs to evictions: Ontario tenant rights guide. Other provinces: rent increase rules by province and security deposit rules.

Sources

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