By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty Inc., Brokerage, Seniors Real Estate Specialist (SRES®). Published October 2026.
After years of record-breaking increases, Toronto rents have spent the past year moving in the other direction. If you are looking for a place, renewing a lease or renting out a condo, the rental market looks very different than it did two or three years ago. Here is what has happened to rent prices in Toronto over the past 12 months, why it happened, and what it means for you.
Toronto rents at a glance (October 2026)
- $2,554: average asking rent for apartments and condos in Toronto in September 2026, down 1.4% from a year earlier (Rentals.ca and Urbanation).
- 32 months in a row of year-over-year declines in Toronto, with September rents at their lowest level for that month since 2021.
- $2,273: average one-bedroom condo lease in the GTA in Q2 2026, down 2.3% (TRREB).
- Three-bedroom rents are rising: up 1.8% in Toronto to $3,586, the only large Canadian city where they increased.
- 3.0%: GTA purpose-built vacancy rate for 2025, the highest since before the pandemic, with CMHC forecasting 3.8% for 2026.
How Toronto rents changed over the past year
Asking rents in Toronto continued to drift lower year over year through 2025 and 2026, but the pattern within the year matters. According to the Rentals.ca and Urbanation National Rent Report, Toronto’s average asking rent rose for four straight months from April to July 2026 as the busy spring and summer leasing season kicked in. In June it reached $2,537, still 1.9% lower than a year earlier.
Rents then eased in August and September, which is normal as demand fades after the summer. By September 2026, the average asking rent was $2,554: down 0.6% from August and 1.4% from September 2025. That marked Toronto’s 32nd consecutive month of annual decline, although the yearly drop is now much smaller than it was in 2024 and 2025.
| Source | What it measures | Latest figure | Change vs. a year ago |
|---|---|---|---|
| Rentals.ca / Urbanation | Average asking rent, apartments and condos, City of Toronto (Sept. 2026) | $2,554 | −1.4% |
| Rentals.ca / Urbanation | Average asking rent, three-bedroom units, Toronto (Sept. 2026) | $3,586 | +1.8% |
| TRREB | Average one-bedroom condo apartment leased, GTA (Q2 2026) | $2,273 | −2.3% |
| TRREB | Average two-bedroom condo apartment leased, GTA (Q2 2026) | $3,013 | −1.7% |
| liv.rent | Average unfurnished one-bedroom asking rent, City of Toronto (Sept. 2026) | $1,973 | −3.7% |
Why rents have been falling
1. A wave of new supply
Thousands of new condos have been completed in Toronto in the past two years. With condo sales slow, many investors who could not sell are renting their units instead, adding to the supply. Purpose-built rental buildings are also being completed at a faster pace: CMHC reports that rental apartment completions in early 2026 were running ahead of 2025.
2. Slower population growth
Fewer temporary residents, including international students, arrived in 2025, which reduced demand, especially for smaller units near colleges and universities. Permanent immigration has continued to support demand, and Rentals.ca notes that revised population data shows growth was a little stronger than first reported.
3. More choice for renters
CMHC reported that the purpose-built vacancy rate in the GTA rose to 3.0% in 2025, its highest level since before the pandemic. On TRREB’s MLS® System, 27,844 condo apartments were listed for rent in the second quarter of 2026, up 2.9% from a year earlier.
Not all rentals are moving the same way
- Condos have fallen the most. Across Canada, Rentals.ca reports that condo rents fell 7.8% year over year in September 2026, compared with 2.7% for purpose-built rental apartments. Studio condos saw the steepest drop of all.
- Family-sized units are holding up. Toronto was the only large city where three-bedroom rents rose over the past year, up 1.8% to $3,586. Larger units are in short supply, and many new condos are studios and one-bedrooms.
- Older, cheaper units are still tight. CMHC found that vacancies are highest in buildings completed after 2020, while older buildings with lower rents remain hard to find.
Where rents fell the most in the GTA
Some of the biggest declines in Canada were in suburban markets around Toronto. Rentals.ca reports that average apartment and condo rents in Scarborough were down 10.9% from a year earlier in September 2026, and in Oakville they were down 10.8%. Both were among the five largest annual declines in the country.
At the other end, North York remains one of the most expensive rental markets in Canada, with an average asking rent of $2,516 in September. liv.rent also reported that one-bedroom asking rents in Vaughan and Richmond Hill were up about 3% from a year earlier, one of the few GTA areas with an increase.
Landlord incentives are back
With more units competing for tenants, many landlords are offering perks instead of, or as well as, lower rents. CMHC’s 2026 mid-year rental update describes landlords advertising one or more months of free rent, free or discounted parking, gift cards, move-in credits and cash bonuses.
What comes next for Toronto rents
Most forecasters expect the market to stay favourable to renters in the near term, but the steep declines appear to be over. Rentals.ca and Urbanation point out that Toronto rents have risen over the past six months, that the pipeline of buildings under construction has peaked, and that lower rents are bringing renters back into the market who had been living with family or roommates. They see conditions lining up for rents to start growing again.
TRREB notes that condo rental transactions grew faster than listings in the second quarter of 2026 (up 4.2% versus 2.9%), and says conditions could gradually tighten if that continues. CMHC still expects the GTA vacancy rate to rise to about 3.8% in 2026, which would keep plenty of choice for renters for now.
What this means for you
If you are renting
- Negotiate. With more listings, many landlords will discuss the rent, the start date or incentives, especially in newer buildings and in the fall and winter.
- Compare the total cost. A free month or free parking can be worth more than a small rent reduction over a one-year lease.
- Know your rights at renewal. For most units, the 2026 Ontario rent increase guideline is 2.1%. Units first occupied after November 15, 2018 are exempt.
- Be ready to move quickly for the best units. My rental checklist and introduction letter templates will help your application stand out.
If you are a landlord
- Price to today’s market, based on recent leases of similar units nearby, not last year’s rents.
- Consider incentives such as a free month or parking to lease faster without permanently lowering the rent.
- Make the listing shine with good photos and clear details, and screen tenants carefully. See how I help on my leasing page.
If you are thinking about buying
Softer rents and softer condo prices have both improved affordability. Compare your rent with a mortgage payment using my mortgage calculator, and read To lease or to buy? to weigh the pros and cons. First-time buyers can start with my first-time home buyer guide.
Toronto rent FAQ
Are rents going down in Toronto?
Yes, compared with a year ago. Rentals.ca and Urbanation report that Toronto’s average asking rent was $2,554 in September 2026, down 1.4% year over year and the 32nd straight month of annual decline. However, rents rose through the spring and summer of 2026, and several reports say the market is starting to stabilize.
What is the average rent in Toronto right now?
It depends on the source and the type of unit. Rentals.ca reports an average asking rent of $2,554 for all apartments and condos in September 2026. TRREB reports that one-bedroom condo apartments leased for an average of $2,273 in the GTA in the second quarter of 2026, and two-bedrooms for $3,013.
How much can my landlord raise my rent in 2026?
For most units in Ontario, the 2026 rent increase guideline is 2.1%, no more than once every 12 months and with 90 days’ written notice. Units first occupied after November 15, 2018 are exempt from the guideline, and landlords can set any rent for a new tenant.
Is now a good time to rent or to buy in Toronto?
Renters have more choice and negotiating power than they have had in years, and condo prices have also softened. The right answer depends on your budget, savings and how long you plan to stay. Compare a monthly mortgage payment with your rent using my mortgage calculator, or talk to me about your situation.
Questions about renting or buying?
Whether you are looking for a rental, leasing out a condo or deciding whether it is time to buy, I am happy to help in English or Russian. Call or text 416-846-8064 or send me a message. Russian-speaking readers can also see my rental guide in Russian.
Sources
- Rentals.ca and Urbanation, October 2026 National Rent Report (September 2026 data)
- TRREB Rental Market Report, Q2 2026
- liv.rent, September 2026 Ontario rent report
- CMHC, 2025 Rental Market Report and 2026 Mid-Year Rental Market Update; CMHC Summer 2026 Housing Market Update
This article is general information based on published market reports, not financial or legal advice. Figures are averages and vary by building, unit and neighbourhood.