Average Rents Continue to Fall Across Ontario

Rental rates are maintaining their downward trajectory, according to the latest national report by Rentals.ca and Urbanation.

The decline in rents last year was mainly concentrated in Ontario, where average asking rents fell by 4.7%. This followed a 3.7% increase in rents during 2023.

Despite this decrease, the province still has some of the highest average rents in the country.

In 2024, asking rents for condos declined across all unit types in Ontario, led by a 5% decrease in one-bedroom rents to an average of $2,126, and a 4.8% decrease in two-bedroom rents to an average of $2,564. Three-bedroom rents experienced the smallest annual declines, decreasing by 3.3%.

In Toronto, rents overall fell by 7.1%.

A driving factor behind lower rental rates is the greater supply of rental properties than there was in 2023. Developers have put new condos on the rental market that were not selling, there’s more inventory of purpose-built rentals, less demand from international students with new limits on international study permits, and people are leaving Toronto in search of more affordable places to live.