The Headline Numbers
Toronto purpose-built apartment vacancy, October 2025 (2.5% in October 2024)1
Kitchener-Cambridge-Waterloo purpose-built apartment vacancy, October 2025 (3.7% in October 2024)1
Toronto average two-bedroom rent, purpose-built units, October 2025 (up 59% since 2015)2
Toronto average two-bedroom asking rent, Q2 2026 ($2,650) vs the Q3 2023 peak ($2,920)3
Two kinds of rent appear on this page, and they move differently. Average rent from CMHC’s October Rental Market Survey covers every unit in purpose-built rental buildings, occupied or vacant, so it mostly reflects what sitting tenants pay.2 Asking rent from Statistics Canada’s quarterly rent statistics is the price on listings for new leases, which reacts faster to the market.3
Vacancy Rates by City, 2015 to 2025
Vacancy in Ontario’s largest rental markets spent most of the past decade below 3%. In October 2025 it rose in ten of the fifteen Ontario CMAs in the table, and it ranged from 1.3% in Greater Sudbury to 4.3% in Thunder Bay. In Toronto and Ottawa it jumped in 2020 and 2021 in Toronto and Ottawa, fell back to tight levels in 2022 and 2023, and then rose in 2024 and again in 2025.1
| Period | Toronto | Ottawa (Ontario part) | Hamilton | Kitchener-Cambridge-Waterloo |
|---|---|---|---|---|
| 2015 | 1.5% | 3.4% | 3.4% | 2.5% |
| 2016 | 1.3% | 2.8% | 3.8% | 2.1% |
| 2017 | 1% | 1.8% | 2.3% | 1.9% |
| 2018 | 1.1% | 1.6% | 3.1% | 2.9% |
| 2019 | 1.5% | 1.8% | 3.9% | 2.1% |
| 2020 | 3.4% | 3.8% | 3.6% | 2.1% |
| 2021 | 4.6% | 3.3% | 2.6% | 2% |
| 2022 | 1.6% | 2.2% | 1.8% | 1.2% |
| 2023 | 1.4% | 2.2% | 2.1% | 2% |
| 2024 | 2.5% | 2.5% | 2.4% | 3.7% |
| 2025 | 3% | 3.1% | 3.6% | 4.2% |
| CMA | 2023 | 2024 | 2025 |
|---|---|---|---|
| Toronto | 1.4 | 2.5 | 3.0 |
| Ottawa (Ontario part) | 2.2 | 2.5 | 3.1 |
| Hamilton | 2.1 | 2.4 | 3.6 |
| Kitchener-Cambridge-Waterloo | 2.0 | 3.7 | 4.2 |
| London | 1.6 | 2.7 | 3.9 |
| Windsor | 2.0 | 3.1 | 3.6 |
| Oshawa | 1.6 | 3.7 | 3.7 |
| St. Catharines-Niagara | 2.7 | 3.6 | 3.5 |
| Barrie | 2.7 | 2.7 | 4.2 |
| Guelph | 1.3 | 2.0 | 3.2 |
| Kingston | 0.9 | 3.0 | 2.3 |
| Thunder Bay | 2.7 | 3.3 | 4.3 |
| Greater Sudbury | 1.3 | 1.5 | 1.3 |
CMHC attributes the 2025 rise to weaker renter household formation and more supply. Fewer international students and temporary workers arrived, young-adult population growth fell most in Ontario and British Columbia, and in Ontario’s manufacturing corridor purpose-built vacancy reached about 4%.4 In Hamilton and Kitchener-Cambridge-Waterloo, CMHC points to the outflow of international students, and in Waterloo specifically to the cap on study permits.4
Average Rents: Ten Years of Increases
Average two-bedroom rents in purpose-built buildings rose between 50% and 82% in all fifteen Ontario CMAs in the table between October 2015 and October 2025. The fastest growth was in mid-sized markets: Kitchener-Cambridge-Waterloo and Brantford up 82%, Windsor up 76% and Guelph up 75%, against 59% in Toronto.2
| Period | October 2015 | October 2025 |
|---|---|---|
| Toronto | $1,286 | $2,045 |
| Ottawa | $1,174 | $1,916 |
| Hamilton | $1,040 | $1,659 |
| Kitchener | $996 | $1,816 |
| London | $959 | $1,645 |
| Oshawa | $1,037 | $1,762 |
| Kingston | $1,095 | $1,763 |
| Windsor | $823 | $1,451 |
Rents kept rising in 2025 even as vacancy climbed, because most of the increase comes from units being re-let at market rates when a tenant leaves. Over the year to October 2025, the average two-bedroom rose 3.7% in Toronto, 2.5% in Ottawa, 1.4% in Hamilton, 6.7% in London and 11.2% in Brantford. The smallest rise was 1.0% in Peterborough.2 CMHC notes that across major centres, the rent charged on new leases fell in several markets, including Toronto, while new tenants still paid more on average than sitting tenants.4
Asking Rents Have Come Down From Their Peak
Listing prices tell the turn more clearly. Average asking rents for two-bedroom apartments peaked between 2023 and early 2025 across Ontario’s large CMAs and have drifted down since. By the second quarter of 2026, the two-bedroom asking rent was 9.2% below its peak in Toronto, 7.8% below in Kitchener-Cambridge-Waterloo, 6.5% below in Hamilton, 5.4% below in London and 5.2% below in Ottawa.3
| Period | Toronto | Ottawa (Ontario part) | Hamilton | London |
|---|---|---|---|---|
| Q1 2019 | $2,560 | $1,710 | $1,570 | $1,300 |
| Q1 2020 | $2,490 | $1,850 | $1,730 | $1,470 |
| Q1 2021 | $2,140 | $1,770 | $1,750 | $1,520 |
| Q1 2022 | $2,320 | $1,950 | $1,940 | $1,690 |
| Q1 2023 | $2,730 | $2,110 | $2,110 | $1,880 |
| Q1 2024 | $2,850 | $2,290 | $2,220 | $2,010 |
| Q1 2025 | $2,690 | $2,490 | $2,180 | $2,020 |
| Q1 2026 | $2,660 | $2,350 | $2,190 | $1,930 |
| Q2 2026 | $2,650 | $2,360 | $2,150 | $1,920 |
Asking rents still sit well above what tenants pay on average. In Toronto in the second quarter of 2026, the average two-bedroom asking rent was $2,650 against an average paid rent of $2,160; in London the figures were $1,920 and $1,560.3 Paid rent in this table is a three-quarter moving average and some quarterly values are flagged for use with caution, so read single-quarter moves loosely.3
What This Means for Screening
A softer market changes the balance between landlord and applicant, but not what a good file looks like. Four practical effects for Ontario REALTORs® and landlords:
- More time on market raises the pressure to cut corners. With vacancy at three to four percent in most large CMAs, a unit can sit longer. Skipping income or reference checks to fill it faster trades a month of vacancy for the risk of arrears. Keep the same checks for every applicant; see the tenant screening checklist.
- More applicants are moving, so more have rental history to check. CMHC reports tenant turnover rising as new-lease rents eased.4 A previous landlord is easier to reach than ever, so make the call: see how to check landlord references.
- Fewer students and newcomers in some markets, but not none. Where CMHC links rising vacancy to fewer international students, the applicants who do come often have thin Canadian credit files. No credit history is not bad credit history; see screening newcomers and students.
- Weaker job markets make employment worth verifying at the source. CMHC ties part of the softening to rising unemployment, especially among young workers.4 A pay stub shows last month; a payroll record or recent deposits show the job is current. See how to verify a tenant’s employment.
Income rules don’t loosen with the market. Ontario’s Human Rights Commission treats a fixed rent-to-income cut-off as illegal, so use income to confirm the rent can be paid, alongside credit and rental history. The details are in Income Requirements and Rent-to-Income Ratios in Ontario, and what happened to allowable increases for sitting tenants is in Ontario’s rent increase guideline history.
About the Data
- Vacancy rates are from CMHC’s Rental Market Survey, published by Statistics Canada in table 34-10-0127-01: privately initiated apartment structures of six units and over, October of each year.1
- Average rents are from the same survey, table 34-10-0133-01: privately initiated row and apartment structures of three units and over, two-bedroom units, October of each year.2
- Asking and paid rents are Statistics Canada experimental estimates from Quarterly Rent Statistics, table 46-10-0092-01, through the second quarter of 2026.3
- The CMHC survey covers purpose-built rentals; rented condominiums, basement units and houses are not in these averages. CMHC’s 2025 Rental Market Report was published December 11, 2025; the next edition is due after the October 2026 survey.4
- Ottawa figures use the Ontario part of the Ottawa-Gatineau CMA. CMA means census metropolitan area.
Questions
What Is the Rental Vacancy Rate in Ontario Cities?
In October 2025, purpose-built apartment vacancy was 3.0% in Toronto, 3.1% in Ottawa (Ontario part), 3.6% in Hamilton, 3.9% in London and 4.2% in Kitchener-Cambridge-Waterloo and Barrie. It rose in ten of fifteen Ontario CMAs.1
Are Rents Going Down in Ontario?
Asking rents for new leases are, while average rents are not. Two-bedroom asking rents in Q2 2026 were 5% to 9% below their peaks in Toronto, Ottawa, Hamilton, London and Kitchener-Cambridge-Waterloo, but average purpose-built rents still rose in October 2025.3,2
What Is the Average Rent for a Two-Bedroom in Toronto?
$2,045 a month in purpose-built buildings in October 2025, counting sitting tenants. The average asking rent for a two-bedroom listing was $2,650 in Q2 2026.2,3
Why Did Vacancy Rise in 2025?
CMHC points to fewer international students and temporary workers, slower young-adult population growth in Ontario, rising unemployment among younger workers, and new supply, including more condominiums offered for rent.4
Sources
- Canada Mortgage and Housing Corporation, vacancy rates, apartment structures of six units and over, privately initiated in census metropolitan areas (Table 34-10-0127-01)
Statistics Canada (data from CMHC Rental Market Survey), Ontario CMAs, annual (October), 2015 to 2025; full-table CSV download. Accessed October 22, 2026.
- Canada Mortgage and Housing Corporation, average rents for areas with a population of 10,000 and over (Table 34-10-0133-01)
Statistics Canada (data from CMHC Rental Market Survey), Row and apartment structures of three units and over, two-bedroom units, Ontario CMAs, 2015 to 2025; full-table CSV download. Accessed October 22, 2026.
- Asking rent and paid rent prices, by rental unit type and number of bedrooms, experimental estimates (Table 46-10-0092-01)
Statistics Canada, Quarterly Rent Statistics, Apartment, 2 bedrooms; average asking rent and average paid rent; Ontario CMAs, Q1 2019 to Q2 2026; table note 2 (paid rent is a three-quarter moving average). Accessed October 22, 2026.
- 2025 Rental Market Report
Canada Mortgage and Housing Corporation, Highlights; Lower migration and a weaker labour market slowed rental demand; Greater Toronto Area; Hamilton; Kitchener-Cambridge-Waterloo. Published December 11, 2025. Accessed October 22, 2026.
