Toronto Rental Market 2025: Finally a Break for Renters

Toronto Rental Market 2025 Shows Signs of Relief

The Toronto rental market 2025 looks very different from just a few years ago. After years of steep increases, rents across the GTA are finally cooling. For tenants, this means more options and stronger negotiating power.

According to the Toronto Regional Real Estate Board (TRREB), over 20,000 condos were rented in Q2 2025, up more than 16% from last year. Listings also rose by a similar rate, giving renters more choices than ever. With so much new supply, landlords are now more open to price discussions and incentives.

GTA Rental Trends: Prices Are Dropping Across the Region

TRREB’s report showed that average one-bedroom rents fell by 5.1% year-over-year to $2,326, while two-bedroom units declined by 3.5% to $3,066.
Other market trackers like Zumper and Urbanation also confirm this trend.

Zumper’s data shows that:

• A typical one-bedroom in Toronto now rents for around $2,200, down 10% from last year.

• Two-bedroom units average $2,790, also down nearly 11%.

Nearby cities are seeing similar or even sharper drops. For example:

• Barrie: $1,750 (-10.3%)

• Kitchener: $1,750 (-7.9%)

• Oshawa: $1,750 (-5.4%)

• London: $1,660 (-5.1%)

Why the Toronto Rental Market 2025 Is Cooling

There are three main reasons for this shift:

1. Record Supply – Developers have completed a wave of new condos and purpose-built rentals, adding thousands of units to the market.

2. Slower Population Growth – With changes in federal immigration policies, demand growth has eased slightly compared to previous years.

3. Economic Adjustment – As interest rates stabilize and employment growth cools, many renters are holding off on moving or buying.

This combination of high supply and moderate demand is giving renters a rare moment of relief.

A Tenant-Friendly Moment — But for How Long?

Experts predict that this trend could continue for the rest of 2025. More condo completions are expected, which means even more investor-owned units entering the rental pool. However, the Greater Toronto Area’s population continues to grow, mainly due to immigration. Many newcomers still rent first before buying, which could eventually tighten the market again.

In short, this window of opportunity may not last forever.

What This Means for You

If you’ve been struggling to find a home or debating whether to move, now might be the right time. With more listings and lower rents, you can finally choose a unit that fits your lifestyle and budget.

And if you’re a landlord, this is the time to review your pricing strategy and ensure your property stands out in a competitive market.

At Century 21 Atria — the #1 Century 21 office worldwide, we understand how quickly the rental landscape is changing. Whether you’re a renter looking for a new place or a landlord adapting to today’s market, our team is here to guide you with expert advice and local insight. We make every step — from search to signing — smooth and stress-free.

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✅ Check out our North York rental, perfectly located right above Yonge–Sheppard Subway Station — ideal for professionals seeking ultimate convenience.

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👉 Contact us today to book a showing or discover more great rental opportunities across Toronto and the GTA.