With home sales at record lows, properties lingering on the market, and rent prices declining across key Ontario cities, the landscape is shifting rapidly.
Declining Rental Rates Across Ontario
Newly released data from Urbanation and Rentals.ca highlights significant drops in rental prices across Ontario, even as rental rates continue to climb in most other parts of Canada. Despite Toronto remaining the third most expensive city for renters, the average rental price has fallen 7.1% compared to last year, with a continued month-over-month decline.
The trend isn’t limited to Toronto—other Ontario cities, including Mississauga, Etobicoke, Guelph, Ottawa, London, and Kingston, have all reported declines in one- and two-bedroom rental prices. Across the province, rent reductions range from 4% (for bachelor and three-bedroom units) to 8% (for two-bedrooms) as of December 2024.
By contrast, rental prices surged elsewhere in Canada, including:
- Saskatchewan (+12%)
- Atlantic Canada & Manitoba (+8%)
- Alberta (+4%)
- British Columbia (-2% decline vs. Ontario’s -6%)
Toronto also saw the largest drop in shared accommodation rents, with the typical room in a shared unit now renting for $1,194—a 9% decrease year-over-year.
Challenges for Real Estate Investors
The changing market conditions have hit condo investors particularly hard. Many are now losing money on new units due to a combination of high mortgage payments, increasing maintenance fees, and rising property taxes—outpacing the rental income they can generate.
Additionally, ongoing inefficiencies at Ontario’s Landlord and Tenant Board (LTB) have made it increasingly difficult for landlords to hold delinquent tenants accountable, raising concerns for those considering rental investments.
Navigating the Market with Lendworth
As market dynamics evolve, having a flexible, equity-based lending partner is critical. At Lendworth, we specialize in private mortgage solutions that help investors and homeowners navigate fluctuating market conditions with confidence. Whether you’re looking to secure financing for an investment property, refinance an existing mortgage, or capitalize on market opportunities, we offer tailored solutions that prioritize speed, flexibility, and financial security.
The real estate market is shifting—but with the right financial strategy, there are always opportunities. Contact Lendworth today to discuss how we can help you adapt and thrive.