MORE CHOICE, LOWER RENTS
AND WHAT COMES NEXT
Published: June 24, 2026
After nearly four years of relentless rent increases, Toronto's rental market is beginning to rebalance.
For the first time since the pandemic, renters are gaining negotiating power while landlords are finding themselves competing harder to attract quality tenants.
With thousands of newly completed condominium units entering the market, slower population growth, and higher vacancy rates, the second half of 2026 could present some of the best rental opportunities we've seen in years. National asking rents have declined from their 2024 peak, and industry forecasts suggest rental growth will remain subdued through the remainder of 2026.
What Is Driving Today's Rental Market?
Several factors have combined to cool Toronto's rental market.
1. More Housing Supply
Thousands of newly completed condominium units are now competing with purpose-built rental buildings.
Many investors who purchased pre-construction condos are now entering the rental market at the same time, increasing available inventory.
2. Slower Population Growth
Federal immigration policy changes have reduced the number of temporary residents entering Canada compared with previous years.
While long-term immigration remains strong, demand has moderated enough to reduce the intense competition landlords experienced throughout 2022-2024.
3. Higher Vacancy Rates
Vacancy rates continue to climb across many Canadian cities.
More available apartments means renters have:
More properties to choose from
More negotiating power
More incentives
Less pressure to make immediate decisions
Canadian Rental Market Snapshot
Illustrative trend based on CMHC, Rentals.ca, RBC Economics and TRREB market reports.
Toronto Rent Prices Continue to Ease
The Toronto Regional Real Estate Board reported that average condominium apartment rents declined year-over-year during the first quarter of 2026.
Average rents were:
1 Bedroom: approximately $2,246
2 Bedroom: approximately $2,939
3 Bedroom: approximately $3,757
These declines reflect increasing competition among landlords rather than weakening long-term demand for Toronto housing.
What This Means for Renters
If you're planning to move this summer or fall, conditions are working in your favour.
Today's renters should:
✅ Compare multiple properties before deciding.
✅ Ask whether incentives are available.
✅ Negotiate rent where appropriate.
✅ Request parking or storage discounts.
✅ Don't rush into the first available unit.
Many landlords would rather negotiate than leave a property vacant for another month.
What This Means for Landlords
The rental market has become considerably more competitive.
Successful landlords in today's market should:
Price realistically
Use professional photography
Respond quickly to inquiries
Keep units spotless
Complete repairs before listing
Be flexible with qualified tenants
Vacancy can quickly become more expensive than accepting a slightly lower monthly rent.
My Toronto Rental Market Prediction
Summer 2026
I expect vacancy rates to continue rising modestly while asking rents remain relatively flat.
Some downtown condominium markets could experience small additional declines, particularly for studio and one-bedroom units.
Fall 2026
Demand typically strengthens in September as students and professionals relocate.
However, increased inventory should prevent the dramatic rent increases experienced over the past several years.
Looking Ahead to 2027
This is where things become interesting.
Although today's market favours renters, developers have dramatically reduced new condominium construction starts because of higher borrowing costs and weaker pre-construction sales.
That means:
Fewer new rental units arriving in 2028
Less future housing supply
Potential upward pressure on rents once demand strengthens again
In other words...
Today's balanced market may only be temporary.
RentingToronto.com's Advice
For Renters
This may be one of the best opportunities in several years to secure a quality rental property at a competitive price.
Take advantage of increased inventory and don't be afraid to negotiate.
For Landlords
Tenant retention should become a priority.
Keeping an excellent tenant for another year is often far less expensive than advertising, cleaning, repairing, and carrying a vacant unit.
Final Thoughts
Toronto's rental market is no longer the frenzied market we saw just two years ago.
Instead, we're entering a healthier and more balanced environment where both landlords and tenants have opportunities.
The remainder of 2026 should continue to favour renters, but longer-term supply concerns suggest today's conditions may not last forever.
At RentingToronto.com, we'll continue tracking vacancy rates, rental pricing, landlord trends, and market forecasts to help both tenants and property owners stay informed.