Ontario rent prices are dropping to lows not seen in years

It's been months and months of bad news for Ontario property owners as home prices — and, by extension, rental rates — continue to slide further, resulting in, for some, massive losses.

New stats released this week show the continual downward trajectory of both the real estate and rental markets, especially in cities like Toronto, which has seen some of the largest declines.

The cost of the standard one-bedroom apartment in the city has, as of last month, plunged to a level unseen since the autumn of 2022, giving tenants a bit more breathing room.

According to listing platform Zumper, which published a market update on Monday, Toronto and other Ontario locales are leading the pack for price declines since this time last year.

While the median rate for a one-bedroom unit nationwide has decreased only 0.1 per cent year-over-year, in Toronto, an apartment of the same size is now a whopping 12 per cent cheaper than it was in August 2024. 

For larger homes, the gap is even larger, with the average price of a two-bedroom unit in Canada increasing by 0.6 per cent, but falling 12.5 per cent in Toronto in particular — the largest price reduction for one- or two-bedroom units, month-over-month or year-over-year, in any of the 23 Canadian cities Zumper analyzed.

"Major cities like Vancouver and Toronto, once among the fastest-growing rental markets in 2023, are now posting some of the steepest annual declines," the firm wrote alongside this info, though it added that not a single market posted "significant" annual rent growth. Saskatoon one-beds saw the largest jump, which was of only 2.4 per cent, to $1,300.

Presently, Toronto is still the third-most expensive hub in Canada for renters, though not by much. The typical one-bedroom spot in the 6ix now goes for $2,200, compared to $2,100 in Halifax, N.S. and $2,090 in Victoria, B.C. Burnaby, B.C.'s rate for a place of one's own is $2,300 as of last month, and Vancouver's is $2,500.

Two-bedroom units, meanwhile, are now $2,800 in T.O., and only a slightly lower $2,620 in Halifax (plus $2,700 in Victoria, $2,930 in Burnaby and $3,450 in Vancouver, for those wondering).

Chart of how rents have changed across Canadian cities as of August 2025 from Zumper.

When it comes to price deterioration compared to this time last year, a few other Ontario cities are hot on the heels of Toronto, including Barrie, which saw year-over-year price reductions of 10.8 per cent for one-bedrooms and 9.5 per cent for two-bedrooms, and Kitchener, with respective price drops of 9.5 per cent (for one-bedrooms) and 6.6 per cent (for two-beds).

St. Catherines, Hamilton and Ottawa also saw the cost of rent fall for units of all sizes, while Windsor, Kingston and London all experienced a slight uptick in the going rate for a one-bedroom apartment alongside cuts to the price of a two-bedroom.

The most affordable of any Ontario metropolis listed is Windsor (where it is currently $1,410 for a one-bed and $1,660 for a two-bed).

For landlords, these trends can mean not only not breaking even, but possibly losing money given housing costs, mortgage rates, rising maintenance fees, property taxes and other fees, especially if they also feel compelled to offer rent incentives to secure occupants in this landscape.