Toronto renters, there’s some good news—sort of. The average rent in Toronto has hit a 28-month low, offering some relief to tenants in one of Canada’s most expensive rental markets. But before celebrating, there’s a catch: rents, while lower than last year, are still significantly higher than they were two or three years ago.
Toronto’s Current Rental Trends
According to the latest report from Rentals.ca and Urbanation, the average monthly rent in Toronto is now $2,640, marking its lowest point in over two years. Here’s how rental prices have changed in the city over the past year:
- One-bedroom apartments: Down 8%, now averaging $2,385.
- Two-bedroom units: Down 10%, now at $3,115.
- Studio apartments: Down 7%, now renting for $1,932.
- Three-bedroom units: Down 6%, averaging $3,710.
While these price drops offer some relief, it’s worth noting that the cost of renting in Toronto remains substantially higher compared to pre-pandemic levels.
A National Perspective
Looking beyond Toronto, the rental market across Canada has also seen some declines. The national average rent is now $2,139 per month—a 1.6% drop compared to last year.
- One-bedroom apartments nationwide: $1,921, down from last year.
- Two-bedroom apartments nationwide: $2,302, also cheaper than a year ago.
However, not all rental categories have followed this downward trend. Studio apartments and three-bedroom unitshave seen notable increases nationwide, with studios up by 5% (averaging $1,629) and three-bedroom units rising 5.1% to $2,965.
The Bigger Picture
Despite these recent drops, rents remain significantly higher than they were a few years ago.
- Rents across Canada are 6.7% higher than two years ago and nearly 19% higher than three years ago.
- Over the past five years, rents have risen steadily at an average of 3.4% annually.
For renters in Toronto, the current decrease might feel like a breath of fresh air after years of sharp increases. However, compared to three or five years ago, the market is still expensive, making affordability a persistent issue.
What Does This Mean for Renters?
The recent decline in rents might offer temporary relief for tenants, but it raises important questions:
- Are these drops a result of temporary market conditions, or are they indicative of a long-term trend?
- Will rental prices remain steady, or is this just a brief reprieve before costs climb again?
For now, Toronto renters can take solace in the fact that rents have come down slightly—but as the data shows, the fight for affordability is far from over.
