Market Overview
Toronto asking rents eased in August 2026. The average asking rent for apartments and condominiums was $2,570 per month, down 0.3% from July and 1.4% from a year earlier, according to the Rentals.ca and Urbanation National Rent Report published September 9, 2026. Toronto and Calgary were the only two of Canada's six largest markets where rents fell from July to August, but Toronto's annual decline was the second smallest of the six, behind only Montreal (-1.1%).
Nationwide, the average asking rent for apartments and condos was $2,040 in August, and the average across all property types was $2,035, down 4.8% year over year in the 23rd consecutive month of annual declines. Ontario apartment and condo rents rose 0.4% from July but were down 3.5% over the year.
The Canada Mortgage and Housing Corporation (CMHC) recorded a purpose-built rental vacancy rate of 3.0% in October 2025, its most recent authoritative survey.
Average Rents by Unit Size
The table below shows CMHC's in-place averages for the existing purpose-built stock as of October 2025. These are what current tenants pay across the broader rental stock, and they sit below the asking rent because asking figures capture newer and higher-end listings.
- Studio (CMHC, Oct 2025): $1,491 / month
- 1 Bedroom (CMHC, Oct 2025): $1,761 / month
- 2 Bedroom (CMHC, Oct 2025): $2,045 / month
- 3 Bedroom+ (CMHC, Oct 2025): $2,294 / month
- All apartments (CMHC, Oct 2025): $1,917 / month
Larger units held up best on the asking side. Rentals.ca reported that Toronto three-bedroom asking rents rose 3.5% over the year to $3,642 in August, with a smaller 0.3% increase for two-bedroom units, while asking rents fell for most unit types across the six largest markets.
Neighborhood Breakdown
Central and downtown neighborhoods continue to command the highest rents in Toronto. Walkable communities near transit and the downtown core carry premium demand from young professionals and downtown workers.
Highest-priced areas
- Downtown / Financial District, office core and transit hub
- Yorkville, premium inner-city with luxury retail
- Liberty Village / CityPlace, condo-rental heavy neighborhoods
- The Annex, university-adjacent and walkable
The former boroughs (Rentals.ca, August 2026)
Rentals.ca tracks several of the former boroughs as separate markets from Toronto, and they moved in different directions in August:
- North York: $2,513, the fourth most expensive market in Canada outside the six largest cities
- Scarborough: down 9.3% over the year, one of the five largest annual declines in the country
- East York: down 8.3% over the year, also among the five largest declines
Neighborhood-level rent averages fluctuate month to month based on listing mix. For in-place rents by area, see the CMHC neighborhood rent tables which are updated on CMHC's schedule.
Supply and Vacancy
Toronto's purpose-built rental vacancy rate reached 3.0% in October 2025, according to CMHC's most recent survey. Nationally, Rentals.ca's September report names the record volume of apartment completions underway as one of the near-term headwinds for rents, and purpose-built rental apartments continued to post the smallest declines of any property type, down 3.3% to $2,038.
Vacancy by unit type (CMHC, October 2025)
- Studio: 4.2%
- 1 bedroom: 3.6%
- 2 bedroom: 2.5%
- 3 bedroom or more: 1.8%
- Overall: 3.0%
Smaller units carry the highest vacancy, while three-bedroom and larger units remain the tightest segment at 1.8%. Shared accommodation is softer: the average asking rent for a room in Toronto fell 4.5% over the year to $1,187, according to Rentals.ca.
Outlook
Rentals.ca describes the national outlook as increasingly uncertain. Its September report points to new US tariffs and Canadian counter-tariffs, the record volume of apartment completions and a declining population as near-term headwinds, partly offset by pent-up demand entering the market as affordability improves. It also notes that the large markets that set the national tone carry far less direct tariff exposure than the auto and steel communities of southwestern and central Ontario.
For most units covered by rent control, Ontario's rent-increase guideline is 2.1% for 2026 and 1.9% for 2027. Increases above it generally require Landlord and Tenant Board approval, and units first occupied after November 15, 2018 are exempt from the guideline.
What this means for renters
- Toronto remains one of Canada's most expensive markets, so budget accordingly
- Two- and three-bedroom asking rents rose over the year even as the citywide average fell
- Scarborough and East York saw some of the largest annual declines in the country
- Know the guideline before accepting a renewal increase on a covered unit
What this means for landlords
- Price to current comparables rather than last year's peak
- Three-bedroom and family-sized units are the tightest segment and the strongest performer
- Renewals within the guideline are cheaper than turnover
- Use the Ontario Standard Lease and a timestamped move-in inspection on every tenancy
SQRFT's September 2026 report will follow the next Rentals.ca National Rent Report, which covers September data.
What it means for you
Turn the market shift into a smarter decision
If you own a rental
LandlordsPrice to a market that has paused. Toronto apartment and condo asking rents slipped 0.3% from July to August and are down 1.4% over the year. Price to current comparables rather than last year's peak.
Compete on retention. Renewing an existing tenant beats the turnover cost of a vacancy. Ontario's rent-increase guideline is 2.1% for 2026 and 1.9% for 2027 on covered units, so plan renewals within those limits.
Get the paperwork right. Ontario requires the Ontario Standard Lease. A written, timestamped move-in inspection is still your best defence against a damage dispute at move-out.
If you rent
TenantsKnow the guideline. For most units covered by rent control, Ontario's rent-increase guideline is 2.1% for 2026 and 1.9% for 2027. Increases above that generally require Landlord and Tenant Board approval. Units first occupied after November 15, 2018 are exempt.
Look outside the core. Scarborough (-9.3%) and East York (-8.3%) posted two of the five largest annual asking-rent declines in Canada in August, according to Rentals.ca.
Use the Standard Lease. Ontario landlords must use the Ontario Standard Lease for most tenancies. If you are not given one, you have specific rights under the Residential Tenancies Act.
MORE MOVING MEANS MORE DISPUTES
A market that has paused still means plenty of move-outs. That is where rental disputes begin.
Many of the disputes that reach Ontario's Landlord and Tenant Board start around move-in and move-out, over rent, possession and damage. sqrft.ca gives Ontario landlords and tenants an Ontario Standard Lease compliant workflow, timestamped move-in and move-out inspections, and a full audit log per tenancy.