The Toronto and Greater Toronto Area (GTA) rental market is currently seeing a notable increase in vacancy rates, with several factors driving this trend.
- Higher Vacancy Rates & Growing Supply The rental vacancy rate in the GTA has risen significantly, with a 30% increase year-over-year. This shift is mainly due to a surge in condo completions and a growing supply of rental units. The number of condo apartment rentals in Q3 2024 jumped by 29.2% compared to the same period in 2023, but new listings grew even faster—by 46.6%—indicating that demand is not keeping up with supply.
- Rental Price Adjustments Despite higher vacancy rates, rental prices have been relatively slow to drop. However, there has been a 5% decline in average rents for one-bedroom condo apartments, which now sit at $2,499 per month in Q3 2024
- In some areas like Oshawa, the average rent for an unfurnished one-bedroom apartment is $1,739, while in Downtown Toronto, the same unit rents for about $2,382
- Landlord Strategies & Market Adjustments Some landlords are hesitant to lower rent prices despite increased vacancies, choosing to wait for high-paying tenants. Others are offering competitive rates and incentives, as pricing above market rates has led to longer listing periods and higher turnover rates.
- Shift in Rental Preferences Apartments remains the dominant rental type, making up 75.68% of active listings. However, partial houses (e.g., basement suites) account for nearly 18% of the market, reflecting a shift in tenant preferences toward more affordable housing options.
- Neighborhood-Specific Trends Downtown Toronto remains the most expensive rental area, while suburban cities like Oshawa and Brampton offer more affordability. Interestingly, Brampton saw a rise in rental prices for one-, two—, and three-bedroom units, bucking the broader trend of price declines.
GTA Rental Market Update – Q4 2024
The Greater Toronto Area (GTA) rental market remained strong in Q4 2024, with rental demand continuing to rise. According to TRREB’s MLS® System, rental transactions increased year-over-year as more households turned to renting due to high borrowing costs and population growth.
However, while demand stayed high, the supply of available condo rentals grew even faster. More rental condominium units entered the market, giving tenants greater choice and negotiating power. As a result, average rents for one-bedroom and two-bedroom condo apartments declined compared to Q4 2023.
Key Takeaways for Renters and Investors
- More rental listings mean renters have better options and bargaining power
- Average rent prices are trending downward due to increased supply
- Landlords may need to price competitively to attract tenants
With more rental condos available across Toronto and the GTA, the market is shifting in favor of renters. If you’re looking to rent or invest, staying updated on these trends is key.
Overall, the GTA rental market is becoming more tenant-friendly as vacancy rates rise and landlords adjust pricing strategies. However, affordability remains a challenge, with some renters still struggling to secure housing even as rents slightly decrease. Let me know if you need a more detailed neighborhood-specific breakdown!
Richard Wang 