After years of soaring rents and relentless bidding wars, prices are now sliding to lows not seen in years — leaving renters breathing a sigh of relief and many landlords facing mounting financial pressure.
Toronto Leads the Pack in Rent Declines
Fresh data from Zumper’s August 2025 report shows Toronto is experiencing some of the sharpest rental price cuts in Canada.
- One-bedroom units: Down 12% year-over-year, the lowest level since fall 2022.
- Two-bedroom units: Plunged 12.5%, marking the steepest decline of all 23 Canadian cities tracked.
Once North America’s rental hot spot, Toronto has now become the epicentre of price drops. The average one-bedroom now sits at $2,200/month, compared to $2,100 in Halifax and $2,090 in Victoria. Vancouver remains Canada’s most expensive market at $2,500.
Other Ontario Cities Feeling the Squeeze
Toronto isn’t alone. Several Ontario markets are also posting double-digit rent corrections:
- Barrie: -10.8% (1-bed) | -9.5% (2-bed)
- Kitchener: -9.5% (1-bed) | -6.6% (2-bed)
- Hamilton, Ottawa, St. Catharines: Broad declines across unit sizes
- Windsor: Now the most affordable metro in Ontario, at $1,410 for a one-bed
Why Are Rents Dropping?
A combination of higher housing supply, stubbornly high mortgage rates, and weaker tenant demand is shifting the market. Many landlords, especially those who purchased at peak prices, now face a painful squeeze as property taxes, condo fees, and mortgage payments remain elevated while rental income drops.
Some are resorting to rent incentives — like free months, parking, or upgrades — just to fill vacancies.
What This Means for Investors and Homeowners
For investors, the message is clear: cash flow is harder to achieve in today’s Ontario market. With rents falling and costs rising, landlords may find themselves operating at a loss.
But for renters, this could be the best window in years to negotiate more favorable leases or finally move into neighbourhoods that were once out of reach.
At Lendworth Canada, we see this shift as a critical moment for both investors and borrowers. Whether you’re navigating shrinking rental yields, looking to refinance, or seeking alternative income strategies, aligning with a trusted mortgage partner can help protect your capital and maximize long-term opportunities.
✅ Bottom Line: Ontario rent prices haven’t just cooled — they’ve corrected sharply. For tenants, relief is here. For landlords and investors, the challenge is just beginning.
📊 Want insights on how to position yourself in a shifting real estate market? Contact Lendworth today — where expertise meets opportunity.