Condo Rental Market Firmly in Tenants’ Favour

Rental rates in the Greater Toronto Area continue to decline despite a recent increase in transactions.

The number of condominium apartments that leased in the fourth quarter of 2025 was up 16% year-over-year, to 13,687 from 11,802, outpacing growth in listings, which rose 8.5%. However, rental rates contracted across all unit sizes during the same time period.

Two-bedroom condo apartments saw the greatest decline. The average rent was $3,017/month, down 8.3% from $3,288/month.

Three-bedroom unit rents fell, on average, 5.8%, sliding well below $4,000/month to $3,777/month.

The average rent for a one-bedroom unit slipped to $2,313/month from $2,421/month, a decrease of 4.4%.

Bachelor condo apartments, which saw a sizeable 21.7% jump in transactions, saw rental rates dip the least. The average monthly rent was $1,886/month compared to $1,936/month, a drop of 2.6%.

A notable shift toward smaller, more affordable units has contributed to the decrease in average rents.

While the home ownership market has become more affordable over the past year, Ipsos polling for the Toronto Regional Real Estate Board (TRREB) has found that many renters are still seeing a gap between an affordable mortgage payment and the mortgage associated with the type of home they would like to purchase. This situation has contributed to sustained rental demand and slower recovery in the home ownership market.

TRREB projects, over the next year, there will likely remain enough inventory in the condominium rental segment to afford tenants substantial negotiating power. This will sustain relatively affordable rents compared to earlier on in the decade.