Toronto rent the lowest it's been in almost 4 years

Following an extended period of soaring rent prices, Toronto renters are finally seeing some relief, with new data showing that the average asking rents in the city have fallen to their lowest level in almost four years.

According to Rentals.ca's February 2026 Rent Report, asking rents across Canada declined for the 16th consecutive month in January, bringing the national average down two per cent year-over-year to $2,057, which represents a 31-month low.

As a result, all major provinces recorded annual rent decreases, with some of the steepest drops seen right here in Ontario (down 3.3 per cent). Toronto, along with Vancouver, posted its lowest average rents in nearly four years.

In Toronto, the average rent across all unit types now sits at $2,504. Rents for one-bedroom apartments have dropped to $2,183, down 1.1 per cent month-over-month and 7.2 per cent year-over-year.

Although two-bedroom rents edged up slightly month-over-month by 0.1 per cent, prices were still down 8.6 per cent annually, averaging $2,801.

Looking at the province as a whole, the average rent for a three-bedroom apartment increased 1.7 per cent year-over-year at $3,029. Still, one-bedroom apartment prices decreased the most in Ontario over the past year, with a 5.3 per cent decrease and an average price of $2,008.

"Apartment rents recorded annual declines in each of the six largest markets, with Calgary rents down 5.7 per cent to a three-year low of $1,815 and Toronto rents down 4.6 per cent to a 44-month low of $2,495," the report reads. Ontario also recorded the largest two-year decline in average apartment rents, down 8.3 per cent.

The data shows a notable shift toward smaller units, as rents per square foot rose 1.4 per cent year-over-year, and the average unit size decreased to 857 sq. ft.

Nationally, rental affordability has also improved, with the rent-to-income ratio dropping to its lowest level in six years to 29.5 per cent, below the industry benchmark of 30 per cent.