Toronto Rent Report, July 2026

Toronto's rental market stabilized through July 2026 after two years of correction. The average asking rent across all property types was $2,577 per month, according to the Rentals.ca and Urbanation National Rent Report for July 2026.

Toronto posted the best annual performance among Canada's six largest markets. Apartment rents were down just 0.8% year-over-year, and rents rose about 1.5% from June on a month-over-month basis. Three-bedroom apartment rents in Toronto grew about 3.9% annually, the strongest segment in the city.

For national context, the average asking rent across Canada in July 2026 was $2,037, down 4.0% year-over-year. Toronto remains one of Canada's most expensive rental markets, but 2026 has been a year of stabilization rather than the steep declines seen in some other large cities.

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.

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 citywide 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

Three-bedroom units were the strongest segment on the asking side, with Toronto three-bedroom apartment rents growing about 3.9% year-over-year. The gap between citywide asking rents and CMHC's purpose-built averages reflects that asking rents capture new-listing prices, while CMHC's data reflects the broader stock including long-standing tenancies.

Central and downtown neighborhoods continue to command the highest rents in Toronto, while the eastern and western suburbs offer the best value per bedroom. 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

Best-value areas

• Scarborough, the east end, typically offers the lowest per-bedroom rents in the city
• Etobicoke, the west end, value-priced with more space per dollar
• North York, mid-range pricing with strong transit access

Neighborhood-level rent averages fluctuate month to month based on listing mix. For current asking rents by specific neighborhood, see the CMHC neighborhood rent tables which are updated on CMHC's schedule.

Toronto's purpose-built rental vacancy rate reached 3.0% in October 2025, according to CMHC's most recent survey. That is a looser market than the extreme tightness of prior years, and it is the backdrop for the stabilization in rents Toronto saw through 2026.

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%. That tightness in family-sized units lines up with the roughly 3.9% annual growth in three-bedroom asking rents.

The near-term outlook for Toronto rents points to continued stabilization through the second half of 2026. After a period of correction, Toronto has firmed up faster than the other large Canadian markets, with apartment rents down just 0.8% year-over-year and up about 1.5% from June.

For most units covered by rent control, Ontario's 2026 rent-increase guideline caps increases at 2.1%. Landlords planning renewals should work within that limit, and increases above it generally require Landlord and Tenant Board approval.

What this means for renters

• Toronto remains one of Canada's most expensive markets, so budget accordingly
• Rents have stabilized rather than kept falling, so waiting for deeper declines may not pay off
• Best value continues to sit in Scarborough (east) and Etobicoke (west)
• Know the 2.1% guideline before accepting a renewal increase on a covered unit

What this means for landlords

• The market has firmed, so price to current comparables rather than last year
• Three-bedroom and family-sized units are the tightest segment and the strongest performer
• Renewals within the 2.1% guideline are cheaper than turnover
• Use the Ontario Standard Lease and a timestamped move-in inspection on every tenancy

SQRFT's August 2026 report will publish on the last business day of August.