Toronto Rentals Since Fall: More Choice, More Competition, and a Very Different Market

If you have been watching Toronto rentals since fall, you have probably felt a subtle shift.

Not a crash. Not a boom. More like the market exhaling.

There is more selection than there was a year or two ago, especially in newer buildings and in condo-heavy pockets of the city. Landlords are working harder to secure strong tenants. And renters are finally seeing moments where negotiating is possible again.

This is a big change from the “take it or leave it” era that dominated 2022 through 2024.

Let’s break down what is actually happening, what is driving it, and how to use it to your advantage, whether you rent, own a rental, or are considering investing.

The big story since fall: softer demand, more supply, more competition

Across Canada, the trend since fall has been consistent: asking rents have generally been easing year over year, and the market has been in a “reset” phase rather than a runaway growth phase. (press.rentals.ca)

For Toronto specifically, the most important detail is the reason behind the shift:

1) Supply has increased, especially from purpose-built rentals and condos

Urbanation’s latest year-end results point to very high rental completions in 2025 and a higher vacancy rate in newer purpose-built rentals than we were used to earlier in the cycle. (urbanation.ca)

At the same time, condo rentals have remained a major competing supply source, with Urbanation noting condo rents slid through 2025 even while condo lease transactions were strong. (urbanation.ca)

2) Landlords have been using incentives more often

When landlords compete, you will usually see it in incentives before you see it in advertised rent cuts. Urbanation highlighted a big increase in incentive usage (including free rent) in 2025. (urbanation.ca)

If you are a renter, that matters, because “face rent” is not always the real rent you can negotiate.

3) Demand drivers have cooled compared to peak years

CMHC has described a more “easing” rental market environment in 2025, driven by a softer economic backdrop and less pressure than the peak demand period. (archive.ph)

A quick word about the media: GTA headlines are usually useless for Toronto renters

This is one of my biggest frustrations.

A lot of rental headlines talk about “Toronto” when they really mean the entire GTA, which often bundles together:

• Toronto
• Durham Region (Pickering, Ajax, Whitby, Oshawa)
• York Region (Markham, Vaughan, Richmond Hill, Newmarket)
• Peel Region (Mississauga, Brampton, Caledon)
• Halton Region (Oakville, Burlington, Milton, Halton Hills)

Those areas do not behave the same way. Not even close.

Toronto has different transit dynamics, different renter demographics, different condo concentration, different employment clusters, and very different neighbourhood-to-neighbourhood micro-markets. It makes no sense to cobble all of that together and call it a single rental “trend.”

So when you hear “rents are up” or “rents are down,” the only responsible follow-up is: where, exactly, and what type of unit?

What this looks like in Toronto right now (practically speaking)

Here are the on-the-ground patterns that match the data coming out of Urbanation, CMHC, and Rentals.ca / Urbanation reports:

Renters have more choice than last fall, especially in condos and newer buildings

National reporting repeatedly highlighted easing rent conditions, and Toronto is consistently named as one of the expensive markets where renters have seen more relief than in prior years. (press.rentals.ca)

In Toronto, this tends to show up first in:

• condo apartments (investor-owned units competing with each other)
• newer purpose-built rentals (more vacancy and more incentives than older buildings) (urbanation.ca)

“Good units” still move fast

Even in a softer market, clean, well-priced units in the right locations get snapped up quickly. The difference now is that renters have more ability to walk away from overpriced listings.

Negotiation is back, but it is selective

In my opinion, the “negotiation window” is most realistic when:

• the unit has been sitting longer than average
• the landlord is competing against multiple similar units in the same building
• the building is offering incentives (or nearby buildings are) (urbanation.ca)

What renters should do right now (Toronto specific)

1. Compare inside the building first
   If a building has multiple available units, you have leverage. Ask what else is available, and what incentives are being offered.
2. Negotiate the full package, not just price
   Try for:

• 1 month free or a reduced effective rent
• parking included
• locker included
• earlier move-in flexibility

3. Be careful with “too good to be true” pricing
   If it is dramatically below market, double-check the details, the landlord, and the lease terms carefully.

What landlords should do right now

1. Price to the market you are in, not the market you remember
   When supply is higher, tenant choice increases, and overpricing usually leads to longer vacancy and more total loss than a small price adjustment.
2. Presentation matters more when renters have options
   Good photos, cleanliness, and quick responses win in a competitive rental environment.
3. Be strategic with incentives
   Incentives are often more effective than repeated price cuts because they create urgency while protecting longer-term rent positioning. (urbanation.ca)

Investor note: is Toronto still “worth it” as a rental?

If you are buying a rental in Toronto today, the question is less “will rents go up forever” and more:

Can you survive the cash flow reality while the market normalizes?

Urbanation’s reporting has pointed out that many newer condo units have had deeply negative monthly ownership cost gaps versus realized rents, which is a serious warning sign for anyone buying purely for cash flow. (urbanation.ca)

In plain English:

• If you need strong cash flow on day one, you need to be extremely selective.
• If you have a long time horizon and can carry the property responsibly, Toronto can still be a solid long-term play, but it is no longer “automatic.”

My takeaway

Since fall, Toronto rentals have moved into a more balanced phase: more supply, more competition, more incentives, and less urgency from renters.

That is good news for tenants looking for choice and negotiating power. It also means landlords need to be sharper, more realistic, and more professional to secure strong tenants quickly.

Ok! That's it for now. Thanks for reading and have a great day! 👋 - Tyson CR

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