Toronto rents averaged $2,554 in Sept. 2026, down 1.4% YoY, as condo benchmarks fell 6.36% and rates rose. What investors should weigh.
The Toronto real estate investment market enters November 2026 with average asking rents at $2,554, down 1.4% year over year, just as a Bank of Canada rate hike pushes variable mortgage rates higher.
What the data shows for the Toronto real estate investment market
Toronto's average asking rent was $2,554 in September 2026, its 32nd straight month of annual declines (Rentals.ca and Urbanation, October 7, 2026). Demand for rentals is still there: GTA condo apartment leases rose 4.2% to 21,251 in Q2 2026, while the average one-bedroom rent fell 2.3% to $2,273 (TRREB Rental Market Report, Q2 2026).
Source: TRREB Rental Market Report, Q2 2026. All TRREB areas.
Purchase prices have fallen faster than rents. The City of Toronto's condo apartment benchmark dropped 6.36% year over year to $543,800, compared with a 3.84% decline in the city's composite benchmark (TRREB MLS® HPI, September 2026).
Source: TRREB MLS® HPI, September 2026. Semi-detached reflects TRREB's single-family attached benchmark.
Mortgage rates and seasonal context
On October 28, the Bank of Canada raised its policy rate to 2.50% and said it could need to raise rates again. Its next decision is December 9. As of November 2, the lowest advertised insured 5-year fixed rate was 4.44% and the 5-year variable 3.69% (Ratehub.ca). Rental-property financing is often priced higher.
Fall is following its usual script. Toronto new listings jumped 55.3% from August in September, and asking rents slipped 0.6% from August, a second monthly dip after four months of gains (TRREB via Zoocasa; Rentals.ca).
The investor takeaway
Lower condo benchmarks may improve entry prices, and Urbanation says new rental supply "is moving past its peak." But rents are still below last year and borrowing costs are rising. Stress-test cash flow at today's rents, budget for vacancy, and plan for a longer hold.
FAQ
Are rents going down in Toronto?
Yes, modestly. Toronto's average asking rent was $2,554 in September 2026, down 1.4% from a year earlier, according to Rentals.ca and Urbanation.
How much does a condo cost in Toronto right now?
The City of Toronto's MLS® HPI condo apartment benchmark was $543,800 in September 2026, and condo apartments sold for an average of $640,248, according to TRREB.
Sources
- Rentals.ca and Urbanation, Canadian rents have fallen for two straight years (October 7, 2026)
- TRREB Rental Market Report, Q2 2026
- TRREB MLS® HPI Public Tables, September 2026
- TRREB Market Watch, September 2026
- Zoocasa, TRREB September 2026 market report
- Bank of Canada, rate announcement (October 28, 2026)
- Ratehub.ca, best mortgage rates (November 2, 2026)
Cover photo: Allen Y on Unsplash
This article is for general information only and is not financial, legal or tax advice. Statistics are from the sources cited and are believed reliable but not guaranteed. Not intended to solicit buyers or sellers currently under contract with a brokerage.
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