Average rent in Toronto is at its lowest since early 2022, a new report finds

A for rent sign outside a home in Toronto on Tuesday July 12, 2022. THE CANADIAN PRESS/Cole Burston

Toronto’s rent has fallen to numbers not seen since early 2022, dropping in average price by more than 10 per cent in the last couple of years, according to a new rental report.

The latest monthly report from Rentals.ca and Urbanation says the average cost declined by 11.8 per cent in the past two years, hovering at $2,498 in December. Compared to December 2024, prices dropped by 5.1 per cent.

Broken down by bedrooms, the going rates for one-bedrooms dropped by 6.1 per cent in Toronto, two-bedrooms declined by 8.8 per cent and three-bedrooms decreased by 5.6 per cent. Respectively, the average asking rents are $2,228, $2,826 and $3,508 per month.

Rental prices across Ontario have dropped as a whole, with the average asking rent dropping by 3.2 per cent to around $2,257 year-over-year.

That monthly cost is still exactly $200 above the national average, though Ontario’s prices trail behind British Columbia’s and Nova Scotia’s at $2,353 and $2,268, respectively.

North York boasted the highest rent in Ontario in December, at an average of $2,495, with Oakville trailing shortly behind at $2,492. The most affordable markets for rent in the province were seen in Sarnia, Welland and Windsor, at $1,688, $1,723 and $1,740, respectively.

The reports notes that across Canada, rents were at their lowest in two-and-a-half years in December, declining on a yearly basis for the 15^th straight month with a 2.3 per cent decline year-over-year and a 5.4 per cent decline over 30 months.

“December marked the slowest month for rental demand in two years, capping off five straight months of declining prospect counts since the July peak,” the report reads. “While demand continued to cool into year-end, the pace of decline began to ease, suggesting that some renters began taking advantage of lower market rents.”

The report forecasts demand will rise this January, pointing to affordability challenges, reduced mobility and slower in-migration as contributing factors shaping renter behaviour.

These are the top 15 priciest rents across Canada’s top markets in December 2025, on average:

1. North Vancouver, B.C., $2,974 per month
2. Vancouver, B.C., $2,664 per month
3. Coquitlam, B.C., $2,560 per month
4. Oakville, Ont., $2,545 per month
5. Toronto, Ont., $2,503 per month
6. North York, Ont., $2,501 per month
7. Burnaby, B.C., $2,518 per month
8. Kanata, Ont., $2,495 per month
9. Mississauga, Ont., $2,436 per month
10. Etobicoke, Ont., $2,388 per month
11. Scarborough, Ont., $2,341 per month
12. Vaughan, Ont., $2,338 per month
13. Brampton, Ont., $2,336 per month
14. Kingston, Ont., $2,295 per month
15. Greater Sudbury, Ont., $2,269 per month