According to new data from the Toronto Regional Real Estate Board (TRREB), the Greater Toronto Area (GTA) condominium rental sector saw tighter conditions in the third quarter of 2025 — even as average rents moved lower across all unit types.
The number of condo leases completed through TRREB’s MLS® System climbed 20.2% year-over-year, reaching 22,491 transactions, compared to 18,711 in Q3 2024. New listings also rose, up 15.5% to 28,406 units, as both investors and homeowners sought rental income opportunities amid high borrowing costs.
Many would-be homebuyers remain sidelined by elevated interest rates and affordability challenges, opting to rent longer while saving for a down payment. At the same time, continued immigration-driven population growth has bolstered rental demand, especially among newcomers establishing themselves in the GTA.
Yet, despite the increased activity, average rents declined across all bedroom types, signaling that the market still carries more supply than demand can absorb. Elevated inventory levels have given renters newfound negotiating power, softening rents for the first time in several quarters.
Adding to the competition, new purpose-built rental developments — both recently completed and under construction — are expanding renter choice across the region. This trend is reshaping the GTA’s rental landscape, moving it from scarcity to selection.
For investors, these dynamics highlight a maturing rental market: one where long-term fundamentals like population growth and constrained ownership affordability still support demand — but where pricing power has clearly shifted back toward tenants.
📊 Lendworth Insight:
While rent softness may pressure short-term yields, high demand and continued population inflows signal that the GTA’s rental sector remains a cornerstone of long-term housing stability. Strategic investors focusing on well-located, transit-accessible properties could see strong occupancy and steady cash flow through 2026 and beyond.