Toronto Asking Rents Hit Lowest September Level Since 2021: What It Means

Toronto asking rents just posted their softest September reading in five years. According to the Rentals.ca and Urbanation National Rent Report covering September 2026 data (published October 7), the average asking rent for apartments and condominiums in Toronto was $2,554. That is down 0.6% from August and 1.4% from a year earlier, the city's 32nd consecutive month of annual decline, and the lowest September average since 2021.

CBC News covered the same release in early October. For renters, condo investors, and buyers weighing rent versus buy, the numbers matter more than the headline.

How far have Toronto asking rents fallen?

Citywide, the September tape is quieter than the peak-cycle years, but Toronto is still expensive:

• Toronto apartments and condos: $2,554 average asking rent (-0.6% month over month, -1.4% year over year)
• Canada, all property types: $2,034 (-4.2% year over year), the 24th straight month of annual decline and 9.2% below the May 2024 peak of $2,202
• Ontario apartments and condos: down 3.7% year over year
• Ontario, all property types: down 4.8% year over year, the steepest provincial decline in the report

CBC also noted Toronto still ranked among the priciest major Canadian markets for combined one- and two-bedroom asking rents in September ($2,556). Nearby GTA readings included North York ($2,528), Etobicoke ($2,431), Vaughan ($2,363), Mississauga ($2,337), and Brampton ($2,261).

Nationally, condo rents remain the weak spot. Condo asking rents fell 7.8% year over year to $2,052, led by studio condos at $1,544 (-9.6%). Purpose-built rentals were more resilient at $2,036 (-2.7%).

Why are Toronto rents soft right now?

Two stories sit on top of each other.

Seasonality. Toronto rents rose for four months from April through July, then eased in August and again in September. Rentals.ca calls that pattern typical as leasing demand cools after the summer peak.

Supply and population. CBC quoted broker John Pasalis on the surge of completed investor condos that entered the rental pool, plus a flatter population backdrop, as forces that have shifted leverage toward renters. Giacomo Ladas of Rentals.ca told CBC that because asking rents kept easing through the summer nationally, further softness into fall and winter would fit seasonal norms.

The same report says Toronto and Vancouver are showing early signs of stability: rents have risen over the past six months, construction inventory has peaked, and revised population data show a modest increase. The renter window is real, but Rentals.ca does not call it permanent.

Which unit types and neighbourhoods moved differently?

Three-bedrooms are the exception. Toronto was the only one of Canada's six largest markets where three-bedroom asking rents rose year over year, up 1.8% to $3,586. Smaller units, especially condo studios and ones, carry more of the discounting.

Suburban pockets saw steeper cuts. Rentals.ca lists Scarborough down 10.9% year over year and Oakville down 10.8%, among the largest declines in the country. North York, at $2,516, remained one of the most expensive markets outside the six largest cities. Toronto shared-accommodation asking rents averaged $1,189, down 3.6%.

If you are shopping a three-bedroom near the core, do not expect the same bargaining room as a studio condo in a soft building. Comp the exact unit type and pocket.

What does this mean for Toronto renters?

1. Negotiate, especially on small units. Studios, one-bedrooms, and secondary-market condos are where annual declines have been deepest. Ask about free rent, parking, or other move-in incentives before you sign.
2. Widen the map. Scarborough and some 905 pockets show double-digit annual asking-rent drops in this report.
3. Treat three-bedrooms differently. With Toronto three-bedroom asking rents up year over year, family renters should move faster when a well-priced unit appears.
4. Know what "asking" means. Rentals.ca figures are advertised rents on vacant units. They sit above CMHC in-place averages for the occupied purpose-built stock. Your renewal on an existing lease is a different conversation from a new listing online.

What does this mean for condo investors and landlords?

Underwrite to today's asking rents, not 2022 or 2023. A national condo asking-rent drop of nearly 8%, with studios down almost 10%, is a cash-flow warning for thin deals. Purpose-built product has held up better than condo stock.

If you own a three-bedroom, price to current comps rather than discounting by default. Retention still beats a vacant month. If you are buying an investment condo, stress-test rent at or below the September asking average for that bedroom count, and leave room for fees and vacancy.

On the ownership side, TRREB's September Market Watch showed sales and prices still softer year over year. We broke those numbers down in our TRREB September 2026 Market Watch post.

How should buyers read rent versus buy right now?

Earlier this fall we covered how Toronto condo mortgage payments can line up with average rents. September's lower asking rents do not automatically make renting the better path. Run current rent comps against a real pre-approval, condo fees, and tax, and decide on a time horizon. A one-year lease and a five-year hold are different bets.

Rentals.ca also notes that Statistics Canada average weekly earnings are up 19.4% over five years, while national asking rents are still 16.2% above September 2021 even after the recent decline. Affordability has improved on the margin. It has not turned Toronto cheap.

Frequently asked questions

Are Toronto rents actually falling, or is this just seasonality?
Both. September's month-over-month dip fits a normal post-summer cooldown, and Toronto is also on a 32-month streak of year-over-year declines. The level is the lowest for September since 2021.

Which renters have the most negotiating power?
Shoppers of studios, one-bedrooms, and condo rentals in softer buildings, plus pockets like Scarborough and Oakville that posted double-digit annual asking-rent declines in this report.

Do falling rents mean home prices will keep dropping?
Not one-for-one. Resale prices follow their own supply, rate, and confidence cycle. Watch TRREB sales, new listings, and your neighbourhood comps alongside the rent report.

How do I get a neighbourhood-level read from The Starke Group?
Contact us through our Connect page, call (416) 233-2071, or visit 613 King Street West.

Ready to pressure-test rent versus buy?

The Starke Group, led by Brett Starke and powered by RARE Real Estate Inc., helps renters who are ready to buy, investors who need honest rent comps, and sellers who want pricing grounded in today's market, not last cycle's. Connect with The Starke Group, call (416) 233-2071, or drop by our King West office at 613 King Street West. We will put the September rent tape next to the streets and buildings you actually care about.