The Toronto rental market saw a 7.1 per cent decline in 2024, with average rents falling to $2,632 per month. This drop reverses recent years of growth, including increases of 2.1 per cent in 2023 and 8.6 per cent in 2022. Despite this shift, rents remain 16.8 per cent higher than five years ago.

The decrease stems from a surge in housing supply. A near-record number of purpose-built rental units and an increase in condo completions in 2023 created heightened competition among landlords, driving prices down. Nationally, the rental market also cooled in 2024, influenced by a surge in apartment completions, slower population growth, and a weaker economy.

On a personal note, I’ve observed investor-landlords grappling with these changes, as some tenants renegotiate rents to reflect market trends. This underscores the challenges landlords face in balancing competitive pricing with profitability.

As renters explore more affordable options and landlords adapt to this evolving landscape, what are your thoughts on these changes? Are they an opportunity or a challenge in Toronto’s rental market?

Based on stats from the Toronto Star