Is Toronto's Rent Falling?

Yes, on an overall basis -- but the picture is split by unit size. Rentals.ca's National Rent Report (published September 9, 2026, covering August 2026 data) shows Toronto's average asking rent for apartments and condos at about $2,570, down roughly 1.4% year-over-year, part of a broader trend where Canada's national average asking rent has now fallen for 23 consecutive months. Within that overall decline, larger units are moving the opposite direction: Toronto's average 2-bedroom asking rent rose 0.3% year-over-year to $2,939, and 3-bedroom rose 3.5% to $3,642. CMHC's separate measure of the full existing rental stock (2025 Rental Market Report, October 2025 survey) found Toronto's average 2-bedroom rent still rising 3.5% year-over-year to $2,034, alongside a purpose-built vacancy rate that climbed to 3.0%, the highest since the pandemic.

The citywide decline is concentrated in smaller units, particularly studio and 1-bedroom condos, where a wave of new condo completions has increased supply faster than demand has absorbed it. Larger, family-sized units have not seen the same supply growth, which is the most likely explanation for why 2-bedroom and 3-bedroom rents are still climbing even as the citywide average falls.

Both statements are true and neither is the full picture: Toronto's asking rents for new listings are essentially flat-to-slightly-down overall, but rents for larger (2BR/3BR) units and CMHC's broader rental-stock average are still rising. Whether "Toronto rent is falling" depends on which unit size and which data source is being cited -- an honest answer specifies both.