Toronto Rent Report, September 2026

Toronto asking rents eased for a second month in September 2026. The average asking rent for apartments and condominiums was $2,554 per month, down 0.6% from August and 1.4% from a year earlier, according to the Rentals.ca and Urbanation National Rent Report published October 7, 2026. Rents had risen for four months from April to July, and Rentals.ca describes the late-summer pullback as consistent with typical seasonal trends. September was Toronto's 32nd consecutive month of annual decline, and asking rents were at their lowest September level since 2021.

Nationwide, the average asking rent for apartments and condos was $2,038 in September, and the average across all property types was $2,034, down 4.2% year over year in the 24th consecutive month of annual declines. Ontario apartment and condo rents fell 0.8% from August, ending four consecutive monthly increases from May to August, and were down 3.7% over the year, the largest annual decline of any province.

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 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. Toronto was the only one of Canada's six largest markets where three-bedroom asking rents rose over the year, up 1.8% to $3,586 in September, according to Rentals.ca. Across Ontario, three-bedroom asking rents fell 2.3% to $2,984.

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, September 2026)

Rentals.ca tracks several of the former boroughs as separate markets from Toronto, and they moved in different directions in September:

• North York: $2,516, the fourth most expensive market in Canada outside the six largest cities
• Scarborough: down 10.9% over the year, the third largest annual decline in the country

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.

Toronto's purpose-built rental vacancy rate reached 3.0% in October 2025, according to CMHC's most recent survey. Rentals.ca's October report says construction inventory in Toronto and Vancouver has now peaked. Nationally, purpose-built rental apartments continued to post the smallest annual declines of any property type, down 2.7% to $2,036, while condo rents fell 7.8% to $2,052.

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 3.6% over the year to $1,189, according to Rentals.ca.

Rentals.ca sees signs of stability emerging in Toronto and Vancouver after rents fell to their lowest September levels in five years. Its October report notes that rents in both cities have risen over the past six months and points to several conditions that support an upcoming return to positive rent growth: construction inventory has peaked, new data revisions show that a previously reported decline in population was actually a modest increase, and both cities have less exposure to tariffs in their job markets. In the near term, it says more affordable rents and move-in incentives are releasing pent-up demand from delayed household formation, after higher rents in previous years kept prospective renters living with parents or roommates for longer.

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
• Three-bedroom asking rents rose over the year even as the citywide average fell
• Scarborough saw one 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, demand typically fades heading into the fall
• 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 October 2026 report will follow the next Rentals.ca National Rent Report, which covers October data.