Rental Market Report – TRREB (GTA Q1 2025)

In the first quarter of 2025, the Greater Toronto Area condo rental market experienced a substantial surge in activity. A total of 14,797 condominium units were rented, marking a 16.7% increase compared to Q1 2024. Simultaneously, the number of listed units rose by 11% to 22,652, indicating a more competitive landscape for landlords.

Despite the increased activity, average rental rates declined modestly. One-bedroom units saw a 4% decrease, bringing the average monthly rent down to $2,343, while two-bedroom units dropped by 3.3% to an average of $3,036. These declines signal a shift in tenant-landlord dynamics, with tenants gaining more leverage in negotiations, often securing better terms, added incentives, or lower rates.

For property owners and investors, this changing market landscape underscores the importance of adaptability. As rental inventory grows, landlords must prioritize well-maintained properties, competitive pricing, and tenant-focused lease offerings to attract long-term renters. The current market conditions may also present new investment opportunities, especially for those prepared to offer flexible leasing arrangements and value-driven amenities that meet evolving renter expectations.

Understanding these trends is vital for staying ahead in a fluctuating rental market, especially as affordability concerns and rising inventory continue to influence leasing strategies.
https://trreb.ca/market-data/rental-market-report/