Toronto Rental Market Update: Spring 2026

The Greater Toronto Area rental market continues to evolve as we head into spring 2026. Here is what property owners need to know to stay ahead.

Supply continues to tighten¶

Despite record construction starts in 2024-2025, new purpose-built rental supply has not kept pace with population growth. Immigration targets remain high, and Toronto student population continues to expand. The result: vacancy rates in core Toronto neighbourhoods remain below 2%, keeping upward pressure on rents.

Average rents by unit type¶

One-bedroom units in downtown Toronto are averaging $2,450/month, up 4.2% year-over-year. Two-bedroom units average $3,100/month. The most significant growth is in the 905 belt — Mississauga and Brampton are seeing 6-7% annual rent increases as more renters look outside the core for affordability.

What this means for property owners¶

Now is an excellent time to review your rental rates. If you have not adjusted rents for existing tenants, consider the allowable guideline increase set by the Ontario government annually. For new tenants, market-rate pricing should reflect current conditions.

Our team produces quarterly market reports for all clients. If you would like a complimentary rent assessment for your property, reach out to us anytime.