If you've been following Toronto's rental market lately, you may have noticed something feels different. Rents aren't climbing the way they were a couple of years ago — and for anyone searching for a home in the city right now, that shift is worth understanding.

Toronto Rents Are Still Growing — But Slowly

The average in-place rent in Toronto grew 2.4% year-over-year in Q1 2026 — just below the national average of 2.7% and the slowest pace of growth the city has seen in years.

Here's what Torontonians are currently paying on average by unit type:

Toronto rents remain above the national average — but the gap is narrowing.

If You're Signing a New Lease, Prices Are Coming Down

Here's the headline for anyone actively apartment hunting in Toronto: new lease rents dropped 2.6% year-over-year in Q1 2026.

That means landlords are offering lower rents on vacant units to attract new tenants. This is a significant reversal from just a few years ago — new lease growth peaked nationally at +13.1% in Q3 2023 before steadily declining. For prospective renters, this is a meaningful window of opportunity to find a new home if they're currently looking.

More Units Are Available Than in Recent Years

Toronto's apartment vacancy rate reached 4.7% in Q1 2026 — up from where it stood a year ago and continuing a trend of rising availability across the city.

Nationally, the vacancy rate has risen for nine consecutive quarters, now sitting at 5.1%. The increase in Toronto is largely driven by a sharp decline in international students and temporary workers who previously made up a significant portion of the city's renter population.

More vacancy means more choice — and more leverage — for renters searching in Toronto today.

Toronto Renters Stay Put — and That Says Something

One of the most telling statistics in the report: Toronto tenants stay an average of 53 months — over four years — the longest average length of stay among all major Canadian cities.

That kind of stability doesn't happen by accident. It reflects the value that Toronto renters place on finding a home in a building and neighbourhood they genuinely love — and staying once they find it.

What's Driving the Shift?

Several factors are reshaping Toronto's rental landscape:

·         Population slowdown: Canada's population declined by over 100,000 in 2025, with fewer non-permanent residents remaining in immigrant-heavy cities like Toronto

·         Weak job growth: The economy added very few jobs over the past year, and youth unemployment climbed to 14.1% nationally in early 2026

·         More supply arriving: Toronto delivered 26,798 new apartment units in the 12 months ending February 2026 — and Ontario recently announced an $8.8 billion partnership with the federal government to fund even more housing development over the next decade

What This Means If You're Looking for a Home in Toronto

The data paints a clear picture: this is one of the more renter-friendly moments Toronto has seen in several years. More units are available, new lease prices are lower than they were, and supply continues to grow.

For anyone who has been waiting for the right time to make a move, the conditions are shifting in your favour.

At Crestview Group of Companies, we manage a portfolio of well-maintained, rent-controlled apartments across GTA, Toronto — and we're proud to offer spacious, sun-filled suites in peaceful, established neighborhoods.

If you're ready to find a place that finally feels like home, we'd love to show you what's available.

📍 View Our Available Suites →

Data sourced from the Yardi Canadian National Multifamily Report, Q2 2026, covering 6,400 properties and more than 571,000 private rental units across Canada.