What to know

Toronto’s average one-bedroom rent fell to $2,183 in January, while two-bedrooms dropped to $2,801, marking a four-year low.

Nationally, asking rents have declined for 16 straight months, with Canada’s average rent hitting a 31-month low of $2,057.

One expert says an influx of newly completed condos has increased supply while easing demand.

With more options available, renters now have leverage to negotiate lower rents, free months, utilities, internet perks, and more flexible lease terms.

Rent prices in Toronto have hit their lowest average in four years, and one real-estate expert is diving into what that means for tenants in the city. 

It is no news that Toronto holds some of the most expensive real-estate markets in the country, where 70 per cent of renters have recently reported spending more than 30 per cent of their monthly income in rent alone, according to a Winter 2025 Renter Feedback Survey.

But the prospects are about to change for tenants in the city. 

A new report by Rentals.ca and Urbanation has found that rent prices are significantly dropping across Canada, including in Toronto, where they’ve reached a four-year low. 

According to the study, the average price for a one-bedroom apartment in the city sat at $2,183 in January, which is a 7.2 per cent drop from last year at this time. Two-bedroom apartment prices have also fallen by 8.6 per cent, reaching a $2,801 rent average. 

In light of the findings, Now Toronto spoke with realtor Will Doyle to understand what this new low means for renters in the city. 

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Why are prices going down?

Although the four-year low came in January, prices have been steadily going down across the country for some time now. 

According to the new report, asking rents have been declining for 16 consecutive months, while the average rent in Canada reached a 31-month low of $2,057 this year. 

Doyle explains that the decline is coming as several new condos in the city are now being launched between last year and this year, flooding the market with new inventory. At the same time, demand for condos seems to be going down, creating a situation where fewer are looking for new rentals, while several properties are available. 

“A lot of investors who would have bought new construction condos, say four or five years ago. Now, it’s not really worth it for them to sell it. So, the alternative is to put it for rent. So, there’s just a big influx of new rental inventory,” he said. 

“Plus immigration is down, so there’s less new immigrants coming, which is usually like a big category for rental demand.” 

What does this mean for renters?

Having more options to choose from, tenants now have a lot more leverage to negotiate the terms of their lease, including rent prices. 

That means now it is easier for renters to get a better deal when finding a new place to live, and even gives them more room to negotiate rent prices with their current landlord, according to Doyle. 

In addition, tenants might also be able to negotiate other terms on their lease, from included utilities to their lease contract’s length. 

“This is probably the best it’s been for tenants in Toronto in a very long time…The urgency is not there anymore. [It] used to be for tenants, where you have to rush and there’s no negotiating. So, now tenants can negotiate on the rent. Some people are getting a month free, or some utilities included. Like, I’ve seen some provide free internet for some of the condos,” Doyle said. 

Is now a good time to move or will prices keep going down?

Although the market seems to have reached a good point for tenants across the city, many might want to also wait for prices to get even better. 

While market trends can always change, Doyle says it doesn’t look like tenants’ luck will anytime soon. 

However, the realtor says that for those who were already looking to move, now might be a good opportunity. 

“There is a chance that the rent prices will continue to go down. Like, there’s no real signs right now that the prices are going to start turning around and going back up anytime soon,” he said. 

“But if you’re looking to move anyways, there is a lot of opportunity to take advantage. So, if you can find a good place at a good rate, and you can negotiate the price down even further, then, I don’t see why not.”