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The cost of rent in Toronto has decreased in 2025, a notable change after several years of sustained growth. The average monthly rent for one-bedroom apartments has dropped significantly year-over-year, with both furnished and unfurnished units posting lower prices than at this time in 2024.
Toronto’s rental market has continued to heat up in 2025, reflecting the city’s ongoing housing demand. According to recent reports, the average rent for a one-bedroom apartment in Toronto rose to $2,350 per month, marking an 8% increase from 2024. This trend highlights the growing challenge of housing affordability for many residents, especially students, young professionals, and families on fixed incomes.
Several factors are driving this increase, including limited housing supply, rising construction costs, and strong demand in popular neighborhoods. New rental developments have not kept pace with population growth, pushing more tenants into the existing rental stock and putting upward pressure on prices.
For tenants, these changes mean careful budgeting and strategic planning are more important than ever. For landlords and policymakers, understanding the trends behind rent increases is key to making informed decisions about property management, housing policies, and tenant protections in Toronto.
The Toronto rental market in 2025 is highly competitive and rapidly evolving, shaped by affordability challenges, shifting tenant preferences, and government regulations. Both renters and landlords face new realities, whether it’s budgeting for higher monthly payments or navigating compliance in a tighter regulatory environment. Below are the major rental market trends shaping Toronto this year:
Rental prices in Toronto continue to climb in 2025, driven by strong demand and limited supply. Downtown neighborhoods like the Financial District, Liberty Village, and King West are still the most expensive, where proximity to jobs, universities, and transit keeps rents elevated.
Many tenants are now expanding their search to suburban areas such as Scarborough, North York, and Etobicoke to find more affordable units. This shift has also increased competition in suburban markets, leading to price growth outside the core. For landlords, this creates an opportunity to capitalize on strong demand, but it also emphasizes the need for transparency and fair pricing to attract reliable tenants.
Key Insight: Average rents for one-bedroom apartments have risen by 8% compared to 2024, putting affordability at the center of Toronto’s housing debate.
Unlike condo rentals, which dominate much of Toronto’s market, purpose-built rental buildings are gaining momentum in 2025. These developments are designed specifically for long-term renters, often offering professional management, enhanced amenities, and greater lease stability.
Tenants are increasingly drawn to these properties because they offer predictable rental terms, fewer risks of early lease termination (common with condo landlords selling their units), and amenities such as fitness centers, co-working spaces, and secure payment systems.
Developers and investors see this as a long-term growth area, particularly as government incentives are rolled out to encourage more purpose-built rental construction.
Key Insight: Purpose-built rentals now represent a growing share of new developments in Toronto, offering both landlords and tenants greater stability in a competitive market.
Even as downtown Toronto remains a hub for students and young professionals, the continued popularity of remote and hybrid work has shifted many renters’ priorities. Tenants are seeking larger spaces with room for home offices, which has made suburban neighborhoods and mid-rise apartments more attractive.
This trend has sparked growth in areas connected by transit, where tenants can balance affordability with accessibility. Landlords with properties outside the downtown core are finding a larger pool of interested tenants than in previous years, as suburban rentals gain popularity among families and professionals who no longer need to commute daily.
Key Insight: Suburban growth is expected to continue in 2025, with increased demand for two-bedroom and three-bedroom units offering flexible living arrangements.
Toronto renters are not just concerned about price — they are also prioritizing sustainability and technology when choosing a home. Features such as energy-efficient appliances, green-certified buildings, and smart home systems are now major decision-making factors.
Younger renters, in particular, are pushing this trend, seeking units with digital amenities like app-based security access, online rent payments, and smart thermostats. For landlords, investing in eco-friendly upgrades and smart technology can increase both rental value and tenant satisfaction, while also aligning with Toronto’s environmental goals.
Key Insight: In 2025, renters increasingly view eco-friendly and tech-enabled units as equally important as location, making them a key differentiator in Toronto’s rental market.
Government policies continue to play a crucial role in shaping Toronto’s rental market. In 2025, Ontario’s rent increase guidelines remain in effect, setting the maximum percentage landlords can raise rent for most tenants. Additionally, Toronto’s municipal housing initiatives, such as efforts to expand affordable housing and regulate short-term rentals, directly affect both landlords and tenants.
For landlords, staying compliant with these regulations is essential to avoid penalties. For tenants, being aware of their rights under provincial and municipal law ensures they can make informed decisions and avoid unexpected rent hikes or lease disputes.
Key Insight: Rent regulations are shaping how landlords set prices and how tenants choose leases, making regulatory awareness critical for both sides of the market in 2025.
With these trends in mind, both renters and landlords can better navigate the challenges of Toronto’s 2025 rental market. Tenants need to be strategic in budgeting and location choices, while landlords should focus on compliance, amenities, and transparent practices to stand out in a competitive environment.
After years of steep increases, Toronto rent prices showed signs of cooling in 2025, offering some relief to tenants. Several key factors have contributed to this shift:
One of the biggest reasons for the decline is the surge in rental supply. More apartment completions, particularly in the condo market, have added thousands of new units to the city’s housing stock. Investor-held rental supply is also on the rise, creating a wider selection of available listings. According to market data, condo rental listings increased by 16% year-over-year, giving renters far more choice than in previous years. With more units available, landlords are facing greater competition, leading to moderated or even reduced asking rents in certain neighborhoods.
At the same time, demand for rentals has softened compared to previous years. Reduced federal immigration targets in 2025 have slowed the influx of newcomers, who typically drive demand for smaller apartments and downtown rentals. Fewer students and young professionals moving into the city has eased the pressure on high-demand units, especially one-bedroom condos. This shift in demand has allowed existing tenants to negotiate more favorable terms and slowed the relentless upward trajectory of rents.
Toronto’s rental market is also experiencing a level of saturation not seen in years. With so many units entering the market simultaneously, supply has temporarily outpaced demand. This historic surplus means renters have greater bargaining power, whether it’s negotiating lower monthly rents, securing free perks (like parking or utilities), or choosing from a broader range of unit types. For landlords, the challenge is to differentiate their properties—through amenities, flexible lease terms, or competitive pricing—to attract tenants in a more balanced market.
Overall, the combination of increased supply, weaker demand, and market saturation has reshaped Toronto’s rental landscape in 2025. While affordability remains a concern, these changes have provided tenants with rare leverage in a market long dominated by rising costs.
The cost of apartments for rent in Toronto varies by type and location:
Data varies month-to-month, but the downward trajectory is clearly established.
Toronto has a mix of apartment buildings and condos for rent. Here's a look at what sets them apart:
Deciding between a house and an apartment? Each has its own set of benefits and drawbacks.
The cost of rent in Toronto in 2025 is finally decreasing, marking a rare window of relief for renters citywide. Average rents for one- and two-bedroom units have dropped between 5–12% year-over-year, a change driven by an influx of new inventory, weakening demand, and shifting renter preferences. Both downtown and peripheral neighborhoods have seen varying degrees of decline, with the supply surge giving tenants new leverage: and reasons to celebrate. Whether you are searching for apartments near Toronto or rentals downtown Toronto, do your research, utilize platforms like TenantPay for secure applications, and act decisively to lock in the best deals.
As of mid-2025, the average rent for an unfurnished one-bedroom apartment in Toronto ranges from $2,048 to $2,126 per month, depending on the neighborhood and time of year.
The average monthly rent for apartments is around $2,048 for one-bedrooms and $3,066 for two-bedrooms in 2025, reflecting a notable drop from last year, according to a report by Statistics Canada.
You can find flats in Toronto by checking multiple rental platforms, working with reputable agents, and leveraging proptech services. For instance, TenantPay simplifies lease applications and secures payments.
Despite the recent drop, Toronto remains expensive due to high demand, limited housing supply, historical population growth, and increased investor activity.
Yes, international students can find apartments for lease Toronto; landlords may request extra documentation such as proof of enrollment, a guarantor, or a higher deposit.
In 2025, downtown rents have declined more sharply and, for some listings, are now cheaper than in certain outer cities like Markham and Oakville.
Submit an application with proof of income, credit history, references, and valid ID. Many landlords and platforms, like TenantPay, facilitate online lease agreements and rent payments.
North York, Scarborough, and select areas outside the downtown core generally offer lower rents for both apartments and houses.
The average rent has decreased by 8–12% for one-bedroom apartments and 3–5% for two-bedrooms compared to 2024 due to increased supply and moderate demand.
Leading platforms like TenantPay are an excellent choice for secure applications and payments, alongside popular options like liv.rent, TRREB-powered listings, and even Airbnb for furnished rentals.