Average asking rents in Ontario fell 3.2% year-over-year in December 2025, according to the latest National Rent Report from Rentals.ca and Urbanation, reaching their lowest level in more than two years.
Toronto led the declines, with rents dropping 5.1% to $2,498, marking the lowest average since early 2022. While three-bedroom units increased slightly, one- and two-bedroom apartments declined 3.1% and 1.6%, and condo rents fell 4% to $2,131. Shared accommodations in Ontario also fell 8.5% to $902, a 34-month low.
Secondary rental markets led the decreases, while purpose-built apartments remained more stable, reflecting a combination of rising supply, affordability pressures, and slowing population growth.
Over the full year, average asking rents in Ontario declined more than during the COVID-19 pandemic, though rents remain higher than pre-pandemic levels. Analysts say the trend is part of a broader pattern affecting major cities across Canada, including Vancouver and Calgary, but Ontario’s population centers are seeing some of the most significant relief for tenants.
Experts from Urbanation and Rentals.ca predict that Ontario rents are likely to continue trending downward in the near term unless economic or demographic conditions shift. While affordability challenges remain, tenants may benefit from easing pressures on monthly rent payments and more options in both secondary markets and shared accommodations.
(Written by: Joseph Goden)
