July 8,2025
RED FM News Desk
Toronto, Ontario-The Fall 2024 Rental Market Report released on Tuesday by the Canadian Mortgage and Housing Corporation showed an increase in vacancy rate in city of Toronto. The rental vacancy rate for the city increased to 2.3%, slightly above its 10-year average. The rise was driven by a surge in newly completed condominium projects, with 45% of units rented out—up from the 5-year average of 40%. This influx of condo rentals intensified competition, leaving more purpose-built rental units vacant for longer.
Vacancy rates in suburban GTA regions (Durham, York, Peel, and Halton) hit 3.3% as new rental supply outpaced demand growth. However, demand did increase in these areas, where larger unit sizes and relatively lower rents remained attractive to renters.
Despite the record new condo rental supply, the vacancy rate for rented condos in the GTA stayed at 0.7%. Investors were quicker to lease units, often making rent concessions due to tighter financial constraints compared to purpose-built landlords.
Rent increases for purpose-built apartments in Toronto slowed sharply, with two-bedroom rents rising just 2.4% in 2024—down from 8.7% the year before. Newer buildings (built post-2005) had higher vacancy rates and contributed most to the slowdown.
Rental supply in the GTA expanded 2.8%, the fastest pace since 1990. Suburban areas led with a 3.9% growth rate, while the City of Toronto saw a 2.5% increase. Etobicoke, North York, and Scarborough recorded notable rental growth.
Rents for two-bedroom units rose 2.7%, less than the 4.9% growth in average earnings, slightly easing affordability pressure. However, vacancy rates for the lowest-cost units remained critically low at 0.4%, and rent arrears reached their second-highest recorded level.
Tenant turnover reached a new low, partly due to the significant premium—28% to 43%—needed to rent a vacant unit at market rate versus staying on an existing lease. This further highlights the affordability squeeze for new renters.
Loading ...
