Toronto’s rental landscape is shifting in real time, and renters are making one thing clear: not all units are created equal. Despite cranes dotting the skyline, a surprising trend is emerging. Many tenants are walking past the shiny new towers and choosing older buildings with more space, character and rent control.
And the numbers are wild. Only 53 new condo units sold in Toronto in September, according to fresh BILD data. That’s not a slowdown. That’s a near-stall.
Why renters are saying “no thanks” to new construction
A growing share of Toronto renters are deciding that newer doesn’t mean better. Common complaints include:
- Cramped, awkward layouts
- Sliding glass doors and micro-kitchens
- No room for a dining table or desk
- Sterile finishes and copy-paste designs
- Zero rent control on post-2018 buildings
For many, the tradeoff isn’t worth it. Even students and young professionals are targeting buildings from the 1930s to the 1970s for one simple reason: the units actually feel livable.
Rent control is a major factor
Any building first occupied before Nov. 15, 2018 is protected by Ontario’s rent-control rules. In a high-inflation rental climate, that’s a massive deal.
Some tenants in newer towers have already been slammed with $400 to $500 annual increases, making budgeting nearly impossible.
One renter put it bluntly: “Who are these condos even for?”
Investors are buying the smallest possible units, and it shows
The data makes the picture even clearer:
More than 55% of Toronto condos built between 2016 and 2020 were investor-owned. Developers responded by shrinking footprints to maximize pre-construction sales.
Result: units so small you “could open the fridge with your toes.”
Condos built in the last decade are, on median, 400 square feet smaller than those from 1971–1990 (Statistics Canada). For renters who actually need to live in their space, that size difference is a dealbreaker.
The market has flipped. Renters finally have leverage.
After years of bidding wars for rentals, something unusual is happening:
Average rents for unfurnished one-bedroom units in Toronto dropped by roughly $300 year-over-year (Liv Rent). Vacancy rates in condo rentals are rising, and investors with small portfolios are feeling the pinch.
Renters are no longer rushing. They’re shopping around, negotiating harder and choosing quality over novelty.
Developers are offering freebies, but it’s not solving the core problem
Some new-build landlords are now offering:
- One month free
- Reduced deposits
- Move-in bonuses
But incentives can’t fix a layout that feels like a shoebox, or the absence of rent-control protections. Until units are built for residents rather than spreadsheets, renters will keep choosing older stock.
What this means for the GTA housing ecosystem
The story isn’t simply about preferences. It’s a signal of a deeper structural issue:
- New builds aren’t aligned with end-user needs
- Investors aren’t rushing to buy micro-units anymore
- Developers can only build what sells pre-construction
- If micro-units were banned tomorrow, new construction would freeze
This dynamic is reshaping both the rental and ownership sides of the market.
Lendworth’s takeaway
For investors, developers and lenders, this trend is a reminder that livability matters just as much as supply. The market is rewarding functionality, space and predictability (like rent control). The era of ultra-tiny, investor-driven units is losing momentum fast.
Toronto’s rental market is recalibrating. And as renters vote with their feet, the next generation of housing will need to deliver more than glossy marketing and quartz countertops.