Toronto rental market data
Toronto’s rental market softened meaningfully in 2025. Vacancy rates rose to their highest level since the pandemic as reduced immigration, a weaker labour market, and a surge of condominium apartments entering the rental market gave tenants more options and bargaining power.
The average purpose-built rent in the Toronto CMA was $1,917 per month, while the vacancy rate rose to 3.0% — the highest since 2021. For national rental trends, see the Canada rental market overview.
| Metric | October 2025 | Year-over-year |
|---|---|---|
| Average rent (all bedrooms) | $1,917 | +3.2% |
| Median rent | $1,850 | +5.1% |
| Average 2-bedroom rent | $2,046 | +3.4% |
| Vacancy rate | 3.0% | Up from 2.5% |
| Turnover rate | 8.7% | Up from 6.4% |
| Purpose-built universe | 343,539 | +0.4% |
| Condo 2-bedroom rent | $2,891 | -1.1% |
| Condo vacancy rate | 0.9% | Up from 0.7% |
Rent growth slowed from the 9.1% spike in 2023 to 3.2% in 2025. However, the most notable shift was in turnover rents — the rent paid by new tenants taking over a unit. For the first time in several years, turnover rents for some unit types actually declined as landlords lowered asking prices and offered incentives to fill vacancies.
Average rent by bedroom type
The cost of rent in Toronto varies significantly by unit size. CMHC reports rent data for both turnover units (recently leased to a new tenant) and non-turnover units (sitting tenants). Turnover rents reflect current market pricing — what you’d actually pay if you moved today — while non-turnover rents are lower due to Ontario’s rent control guidelines limiting annual increases for existing tenants.
What new tenants are paying (turnover rent)
| Bedroom Type | Oct 2024 | Oct 2025 | YoY Change |
|---|---|---|---|
| Studio | $1,830 | $1,708 | -6.7% |
| 1 Bedroom | $2,179 | $2,073 | -4.9% |
| 2 Bedroom | $2,612 | $2,547 | -2.5% |
| 3 Bedroom+ | $3,138 | $2,893 | -7.8% |
| All types | $2,358 | $2,256 | -4.3% |
Turnover rents fell across every bedroom type in 2025. Studios and three-bedroom+ units saw the largest declines (-6.7% and -7.8% respectively), while two-bedroom units were the most resilient (-2.5%). This confirms that landlords are reducing rents on vacant units to attract tenants in a softer market.
Toronto CMA Rent by Bedroom Type — October 2025
What existing tenants are paying (non-turnover rent)
| Bedroom Type | Oct 2024 | Oct 2025 | YoY Change |
|---|---|---|---|
| Studio | $1,409 | $1,443 | +2.4% |
| 1 Bedroom | $1,663 | $1,711 | +2.9% |
| 2 Bedroom | $1,918 | $1,984 | +3.4% |
| 3 Bedroom+ | $2,152 | $2,263 | +5.2% |
| All types | $1,796 | $1,863 | +3.7% |
Non-turnover rents continued to rise modestly, in line with Ontario’s rent increase guideline. The gap between turnover and non-turnover rents is substantial — a new tenant renting a one-bedroom apartment pays $2,073, while a long-term tenant in the same unit type pays $1,711 on average. That’s a $362 per month premium (21%) for moving to a new unit.
This gap explains why turnover rates remain relatively low despite the softening market — the financial incentive to stay in your current apartment is significant.
Vacancy rate and average rent trends
The Toronto CMA has seen dramatic swings in rental market conditions over the past 35 years. Vacancy rates were extremely tight (below 1%) in the late 1990s and again from 2015 to 2019, before the pandemic temporarily loosened the market.
Toronto CMA Vacancy Rate — Purpose-Built Rentals (1990–2025)
The 2025 vacancy rate of 3.0% is notable — it’s above the long-run average and the highest outside of the pandemic period since 2004. CMHC noted that Toronto’s vacancy rate exceeded 3% “for the first time since the pandemic.”
Toronto CMA Average Rent — Purpose-Built Rentals (1990–2025)
Average rent has tripled since 1990, from $634 to $1,917 — a 202% increase. The steepest period of rent growth occurred from 2017 to 2023, when average rent rose from $1,308 to $1,830 (40% increase in six years). Growth has since decelerated to 3.2% in 2025.
Rent prices by neighbourhood
Rent prices vary widely across the Toronto CMA. The following table shows average purpose-built rent (all bedroom types combined) by CMHC survey zone as of October 2025:
Highest rent prices
| Neighbourhood | Avg Rent | Median | Vacancy | Units |
|---|---|---|---|---|
| Oakville | $2,192 | $2,100 | 3.3% | 5,829 |
| Mississauga (NW) | $2,182 | $2,150 | 4.1% | 4,506 |
| Toronto (Central) | $2,163 | $1,950 | 2.8% | 36,100 |
| Etobicoke (Central) | $2,162 | $2,095 | 1.9% | 17,023 |
| North York (NE) | $2,081 | $2,000 | 2.3% | 13,378 |
| Toronto (North) | $2,057 | $1,960 | 3.3% | 32,690 |
| Aurora/Newmarket | $2,053 | $2,100 | 5.4% | 2,497 |
| Etobicoke (North) | $2,047 | $1,995 | 1.5% | 5,887 |
| North York (N. Central) | $1,989 | $1,948 | 2.2% | 13,415 |
Cheapest rent prices
| Neighbourhood | Avg Rent | Median | Vacancy | Units |
|---|---|---|---|---|
| Bradford/W. Gwillimbury | $1,407 | $1,400 | 1.7% | 725 |
| Orangeville/Mono | $1,532 | $1,405 | 3.5% | 1,047 |
| Milton/Halton Hills | $1,600 | $1,588 | 1.8% | 1,049 |
| Etobicoke (South) | $1,630 | $1,611 | 2.7% | 10,961 |
| Toronto (East) | $1,685 | $1,685 | 2.6% | 5,735 |
| North York (NW) | $1,700 | $1,600 | 2.6% | 21,125 |
| East York | $1,715 | $1,640 | 3.5% | 18,652 |
| Scarborough (North) | $1,717 | $1,561 | 2.3% | 7,007 |
| Richmond Hill/Vaughan | $1,726 | $1,588 | 2.4% | 2,413 |
| North York (SW) | $1,728 | $1,716 | 2.8% | 9,637 |
Average Rent by Neighbourhood — Toronto CMA (October 2025)
The gap between the most and least expensive zones is substantial — $785 per month between Oakville ($2,192) and Bradford ($1,407). Within the City of Toronto proper, rents range from $1,630 in Etobicoke South to $2,163 in Toronto Central.
Full neighbourhood data
| Zone | Avg Rent | Vacancy | Units |
|---|---|---|---|
| Toronto (Central) | $2,163 | 2.8% | 36,100 |
| Toronto (East) | $1,685 | 2.6% | 5,735 |
| Toronto (North) | $2,057 | 3.3% | 32,690 |
| Toronto (West) | $1,945 | 3.9% | 26,323 |
| Etobicoke (South) | $1,630 | 2.7% | 10,961 |
| Etobicoke (Central) | $2,162 | 1.9% | 17,023 |
| Etobicoke (North) | $2,047 | 1.5% | 5,887 |
| York | $1,864 | 3.3% | 18,299 |
| East York | $1,715 | 3.5% | 18,652 |
| Scarborough (Central) | $1,754 | 2.7% | 18,422 |
| Scarborough (North) | $1,717 | 2.3% | 7,007 |
| Scarborough (East) | $1,816 | 1.9% | 10,128 |
| North York (SE) | $1,842 | 2.7% | 18,038 |
| North York (NE) | $2,081 | 2.3% | 13,378 |
| North York (SW) | $1,728 | 2.8% | 9,637 |
| North York (N. Central) | $1,989 | 2.2% | 13,415 |
| North York (NW) | $1,700 | 2.6% | 21,125 |
| Mississauga (South) | $1,819 | 3.4% | 12,711 |
| Mississauga (NW) | $2,182 | 4.1% | 4,506 |
| Mississauga (NE) | $1,908 | 4.0% | 13,207 |
| Brampton (West) | $1,953 | 4.6% | 7,195 |
| Brampton (East) | $1,907 | 3.8% | 4,711 |
| Oakville | $2,192 | 3.3% | 5,829 |
| Richmond Hill/Vaughan/King | $1,726 | 2.4% | 2,413 |
| Aurora/Newmarket/Whitchurch-Stouffville | $2,053 | 5.4% | 2,497 |
| Markham | $1,942 | — | 1,631 |
| Pickering/Ajax/Uxbridge | $1,770 | 1.8% | 2,974 |
| Milton/Halton Hills | $1,600 | 1.8% | 1,049 |
| Orangeville/Mono | $1,532 | 3.5% | 1,047 |
| Bradford/W. Gwillimbury/New Tecumseth | $1,407 | 1.7% | 725 |
Purpose-built vs condominium rentals
Toronto’s rental market includes both purpose-built apartments (always operated as rentals) and condominium apartments (individually owned units rented out by investors). The condo rental market is enormous in Toronto — 40.3% of all condo apartments in the CMA are in the rental market, totalling 214,083 units.
| Segment | Vacancy | 2BR Avg Rent | Universe |
|---|---|---|---|
| Purpose-built apartments | 3.0% | $2,046 | 336,180 |
| Condominium apartments | 0.9% | $2,891 | 214,083 |
Purpose-Built vs Condo Rentals — Toronto CMA (October 2025)
Condo two-bedroom rents are 41% higher than purpose-built two-bedroom rents ($2,891 vs $2,046). However, condo rents actually fell 1.1% year-over-year — from $2,924 in October 2024 to $2,891 — as investors competed more aggressively for tenants in a softening ownership market.
Condo rental market trends
| Metric | Oct 2024 | Oct 2025 | Change |
|---|---|---|---|
| Condo vacancy rate | 0.7% | 0.9% | ↑ |
| Condo 2BR rent | $2,924 | $2,891 | -1.1% |
| Condo rentals in market | 207,925 | 214,083 | +3.0% |
| % of condos rented | 40.6% | 40.3% | ↓ |
CMHC’s 2025 report noted that “a strong increase in rented condominium apartments added competitive pressure to the purpose-built segment” in Toronto. This dynamic reflects the weak condo resale market — owners facing difficulty selling have chosen to rent out their units, expanding rental supply. Purpose-built operators identified condo competition as a major obstacle to leasing new projects.
Year-over-year rent change
Annual rent growth has varied dramatically in the Toronto CMA, from near-zero in the early 2000s to a peak of 9.1% in 2023:
Year-over-Year Rent Change — Toronto CMA (1991–2025)
The 3.2% growth in 2025 is moderate by recent standards and represents a sharp deceleration from 2023’s 9.1%. For 2004, the year-over-year change was not statistically significant (shown as 0%).
Rental universe growth
The total number of purpose-built rental units in the Toronto CMA has grown steadily, from 304,091 in 1990 to 343,539 in 2025 — an increase of 13% over 35 years:
Purpose-Built Rental Universe — Toronto CMA (1990–2025)
After decades of minimal growth (the universe grew just 2% from 1990 to 2010), purpose-built rental construction accelerated after 2015. The universe has grown 8.6% in the past decade, adding approximately 27,000 units. With strong rental completions expected to continue, the universe should exceed 350,000 units in the coming years.
Ontario rent increase guideline
For tenants in rent-controlled units, the Ontario government sets an annual rent increase guideline — the maximum a landlord can raise rent without approval from the Landlord and Tenant Board.
| Year | Guideline | Notes |
|---|---|---|
| 2026 | 2.1% | Current year |
| 2025 | 2.5% | Capped at maximum |
| 2024 | 2.5% | Capped at maximum |
| 2023 | 2.5% | Capped at maximum |
| 2022 | 1.2% | |
| 2021 | 0.0% | COVID-19 rent freeze |
| 2020 | 2.2% | |
| 2019 | 1.8% | |
| 2018 | 1.8% | |
| 2017 | 1.5% |
The guideline is calculated using the Ontario Consumer Price Index and is capped at 2.5% to prevent large one-time increases.
Key exemption: Buildings first occupied for residential purposes after November 15, 2018 are not subject to rent control. Landlords of these newer units can raise rent by any amount. This is a major consideration for Toronto renters, as a significant share of new purpose-built rental stock falls into this category.
For sitting tenants in rent-controlled units, the 2.1% guideline for 2026 means a $1,700 rent would increase by roughly $36 per month. Combined with the declining turnover rents shown above, the financial incentive to stay in a rent-controlled unit has never been stronger.
Why the Toronto rental market is changing
Several factors drove the 2025 shift in Toronto’s rental market:
Reduced immigration: Federal policy changes sharply curtailed new arrivals, particularly temporary residents and international students who are heavy users of rental housing. Ontario’s young adult population (15–34) — the primary driver of rental demand — declined.
Weaker labour market: Rising unemployment, especially among younger workers, limited new household formation. The manufacturing corridor around the GTA saw purpose-built apartment vacancy rates reach about 4%.
Increased rental supply: Strong construction completions added new purpose-built units. Simultaneously, a record number of newly completed condominiums entered the rental market as owners who couldn’t sell opted to lease.
Tenant mobility increased: Rising vacancies and new supply gave tenants more options. Turnover rates rose from 6.4% to 8.7% as renters took advantage of the opportunity to move into homes that better matched their preferences.
Glossary
- Purpose-built rental: A residential building specifically constructed and operated as rental housing (not condominiums), typically apartment buildings with 3+ units.
- Vacancy rate: The percentage of rental units that are physically unoccupied and available for immediate rental at the time of the survey.
- Average rent: The average monthly rent paid by all tenants, including long-term tenants paying below-market rates. Not the same as asking rent for available units.
- Median rent: The rent at the 50th percentile — half of tenants pay more, half pay less.
- Turnover rate: The percentage of units where the tenant changed in the past 12 months.
- Turnover rent: The rent paid by a new tenant who recently moved into a unit. Typically higher than the average rent for all tenants.
- Rent increase guideline: The maximum percentage a landlord can raise rent annually in Ontario without Landlord and Tenant Board approval. Set by the provincial government based on CPI.
- Universe: The total stock of purpose-built rental units captured in the CMHC survey.
- CMA: Census Metropolitan Area, as defined by Statistics Canada. Toronto CMA includes the City of Toronto, Mississauga, Brampton, Markham, Vaughan, Oakville, and surrounding municipalities.
Related pages
- Canada Rental Market Data — national vacancy rates and average rent
- Toronto Housing Starts — new construction data for the Toronto CMA
- Housing Starts in Canada — national housing starts and construction trends
Sources
- CMHC Rental Market Survey — Housing Market Information Portal
- CMHC 2025 Rental Market Report — December 2025
- Ontario Residential Rent Increases — rent increase guideline history
- CMHC Rental Market Survey Data Tables