Toronto Rental Trends Show Steady Leasing with Shifting Supply Pressures

Toronto's rental market in early 2025 saw a 16.7% rise in condo rentals but rents fell due to high inventory, with one-bedroom units down 4% and two-bedrooms down 3.3%. Listings remain elevated, pressuring rents, though vacancy rates may tighten if leasing outpaces new listings. New rental construction rose 14.5%, while overall condo starts dropped 11.5%. Investor caution and oversupply may delay rent recovery despite improved cash flow.