written by Igor Veric, Remax West Realty | Toronto Real Estate Agent
After several years of rapid rent increases in Toronto and around the GTA, rental prices are declining in most areas of the GTA. Increased supply is a key factor contributing to rising vacancy rates and declining rents in Toronto. Below you will find a detailed Toronto Rental Market Update & what you can expect if you’re a tenant or landlord in the summer of 2025.
Government initiatives are aiming to boost rental housing supply with purpose-built rental completions in Q1 2025 surged by 173% compared to the previous year. In real terms that equates to 2,136 rental units according to Urbanation. Active condo rental listings also increased significantly (29% year-over-year in Q1 2025), indicating more available units.
“The rental market is undergoing a period of improved affordability thanks to recent increases in supply. This is a good lesson that more supply can help bring down costs for renters. However, this is not expected to last much longer given the current downtrend in construction for both purpose-built rentals and condominiums.”
Shaun Hildebrand, President of Urbanation
Average Rent by City and Unit Type | Toronto Rental Market Update
| Area | 1BR Avg. Rent | MoM Change | YoY Change | 2BR Avg. Rent | MoM Change | YoY Change |
| Burlington | $2,183 | -0.7% | -0.6% | $2,585 | 0.3% | -1.1% |
| Etobicoke | $2,175 | 0.7% | -2.5% | $2,741 | -0.5% | -4.9% |
| Mississauga | $2,152 | -0.3% | -8.0% | $2,599 | 0.8% | -3.8% |
| North York | $2,138 | -1.3% | -6.5% | $2,706 | 0.5% | 0.4% |
| Ajax | $2,103 | 3.4% | 7.8% | $2,160 | -1.8% | -3.2% |
| Scarborough | $2,073 | -0.6% | -5.0% | $2,539 | 0.2% | -5.2% |
| East York | $2,015 | -1.6% | -12.6% | $2,539 | -1.4% | -10.8% |
| Vaughan | $2,190 | -3.4% | -3.8% | $2,655 | 1.4% | 1.0% |
| Oakville | $2,298 | 0.9% | 0.8% | $2,539 | -2.2% | -0.2% |
| Toronto | $2,302 | -0.7% | -7.1% | $2,933 | 0.3% | -10.7% |
What to expect if you’re a tenant
For tenants navigating the Toronto rental market this summer, areas like Mississauga, North York, East York, and Toronto proper are indeed showing promising value, with more meaningful year-over-year declines in rent. This means more options and potentially better deals for renters. The Landlord and Tenant Board (LTB) delays for eviction hearings due to non-payment of rent are making them exceedingly picky about who they approve.
Understand the market! Well priced and presented properties will still attract many applications and you’ll be competing with potentially AAA tenants.
- Prepare your paperwork! (Full Equifax credit report, last 3 paystubs, employment letter)
- Write a nice intro letter to the landlord.
IMPORTANT NOTE: Some tenants will offer more than first and last month’s rent as an incentive when there are multiple applications. First and Last month’s rent is is the only upfront rent payment permitted under the Residential Tenancies Act. That said, you will possibly run into situations where you are competing with other tenants that are going to do it anyway. While I don’t encourage that from my clients, it is a decision that you may have to consider in order to compete.
What to expect if you’re a landlord
Tenants are increasingly gaining leverage in Toronto’s rental market. This is expected to continue into the later parts of 2025. If you are looking to rent our your property, these are must do’s:
- Price: List your property at or slightly below market value. The best qualified tenants (good income, credit, rental history) are only going after good deals. They have many options at the moment.
- Professional Photos and Virtual Tours: This is non-negotiable. High-quality photos make a huge difference in attracting eyeballs.
- Cleanliness: A sparkling clean, decluttered, and well-presented unit makes a strong first impression.
Looking to lease your property or find a rental?
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Don’t like filling out forms? Feel free to call, text, or email me. My cell phone number is 647-830-5210 and my email is info@igorveric.com