Ontario Rents Continue to Decline, While Toronto Shows Early Signs of Stabilizing
July 8, 2026 — Ontario’s rental market remained under pressure in June, with average apartment rents declining 4.6% year over year, according to the latest National Rent Report from Rentals.ca and Urbanation.
The decline places Ontario among the provinces experiencing the largest annual rent reductions, alongside British Columbia and Alberta. However, there are early signs that parts of the market may be beginning to stabilize, particularly in Toronto. Toronto rents increased 1.2% month over month in June to an average of $2,537, marking the city’s third consecutive monthly increase since March. While rents remain 1.9% lower than a year ago, the recent upward movement could suggest Toronto is approaching the bottom of its prolonged rental correction after 29 consecutive months of annual declines.
Ottawa also recorded a monthly increase, with average asking rents rising 1.3% to $2,149 in June. The broader Canadian rental market showed a similar seasonal rebound. Average asking rents across the country increased for a third consecutive month, although they remained 4.3% below June 2025 levels. For Ontario landlords and investors, the data continues to show a divided market depending on property type and location. Purpose built rentals have generally remained more resilient, while condominium rentals have faced greater pricing pressure. Nationally, condo rents declined 6.8% year over year, compared with a 3.1% decline for purpose built rentals. Larger units also continue to perform better than smaller rentals. Three bedroom purpose built units were down only 0.4% annually, while studio condo rents experienced the steepest decline among major unit types at 9.5%.
This trend is particularly relevant in Ontario, where demand for larger family oriented rentals remains stronger than demand for smaller investor owned units in many markets. Some suburban Ontario communities continue to experience significant rent declines. Niagara Falls recorded a 12.5% year over year decrease, while Scarborough fell 11.0% and Markham declined 10.2%. Overall, Ontario’s rental market remains softer than it was a year ago, but the latest numbers suggest the pace of decline may be easing. Toronto’s recent monthly gains are worth watching closely, as they could represent an early sign of stabilization after more than two years of downward pressure. For landlords and investors, the takeaway remains that rental performance is becoming increasingly dependent on unit type, location, and bedroom count. Larger units appear to be holding up better, while smaller condos and rental properties in areas with significant new supply continue to face the most competition.