City of Toronto Rent Prices Fall But Still Expensive

Despite its high housing costs, the City of Toronto remains an in-demand settlement spot for newcomers to Canada and international students looking for "affordable" rental accommodation.

And while the most recent national rent report from Rentals.ca and Urbanation shows that monthly asking rents in Canada's largest cities continue to fall, the City of Toronto, the country's most populous, still has the third highest rents, just behind Vancouver and Burnaby, B.C.

City of Toronto is popular with immigrants

In October, the asking price for a one-bedroom apartment in Toronto was $2,380. That's down 0.9 percent from September and 8.7 percent from October 2023.

The asking price for a popular two-bedroom apartment in Toronto in October rented for $3,091, down 1.3 percent from September and 9.7 percent from October 2023.

In October, the asking rent for a studio apartment in Toronto was $1,952, and a three-bedroom went for $3,659.

The asking price for sharing a room as a roommate fell in Toronto in October as well. Shared accommodation rents were down 8.9 percent yearly in Toronto to $1,196.

In recent years, the City of Toronto has continued to grow and now has a population of 2,794,356.

Toronto versus the GTA

Meanwhile, in 2024, the Greater Toronto Area (GTA) - often called "Toronto" - had a population of 6,431,000 people, an increase of 0.93 percent from 2023.

The GTA comprises 25 urban, suburban, and rural municipalities, stretching from Burlington in the west to Clarington in the east and north to Lake Simcoe.

Brampton, Mississauga, Markham and Oshawa - four cities popular with newcomers - are all part of the GTA.

The City of Toronto includes Toronto and the former independent cities of Etobicoke, North York, Scarborough, York and East York. Newcomers looking for rental housing will encounter those location names as they search for rentals.

In addition to driving population growth, immigration drives rent prices in the City of Toronto, the fourth largest in North America.

Rent prices are expected to fall

The good news for newcomers and international students headed for Toronto is that rent prices continue to fall in a trend that began earlier in 2024. It's predicted that the trend will continue into 2025.

The GTA is often referred to as "Toronto"

In October, annual rental prices nationally in Canada fell for the first time in over three years, but only in big cities such as Toronto, Vancouver, Calgary and Montreal.

Apartment rent decreases in October were mainly focused in Canada’s two most expensive provinces, with B.C. rents down 3.4 percent to an average of $2,549.

Overall, average rents in the City of Toronto have dropped 9.2 percent from October 2023 to $2,642. Meanwhile, average rents in Ontario fell 5.7 percent from a year ago to an average of $2,350.

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The City of Toronto ranks third in rent prices nationally and first in the GTA, according to Rentals.ca

According to the Rentals.ca report, Canadian rental prices fell 1.2 percent in October compared to last year, marking the first time annual rents have declined since July 2021.

For newcomers and international students, it's essential to know that rents in parts of the GTA and other cities in Ontario are more affordable than those in the City of Toronto.

Brampton is cheaper than Toronto

For example, the latest rent price report from Rentals.ca shows the asking price in October for a one-bedroom in Brampton - popular with newcomers from India - was $2,075, down 0.2 percent from September. That's $305 a month cheaper than the City of Toronto.

And in Windsor, the Ontario mid-sized city with the cheapest rents according to Rentals.ca, a one-bedroom was $1,549. That's $831 cheaper monthly than a one-bedroom in the City of Toronto.

(Drone footage by Lvfree Adventures)

The City of Toronto, like the rest of the country, is slowly transitioning into a renters market, according to David Aizikov of Rentsync.

Reduced immigration to Canada, mainly by international students, is behind the continuing drop in rental asking prices.

"The growth in available properties and the continued decline of unique prospects signal that we are transitioning into a renters market," said Aizikov. "With declining demand and growing supply, renters who remain on the market are in a stronger position when looking for new housing than they would have been anytime in the past two years."

Find An Apartment for Rent in Toronto, Ontario

Newcomers are advised to use just 35 percent of their gross monthly income for rent

Despite the drop in rental housing, the City of Toronto remains expensive for newcomers to live in and buy homes.

Following the Government of Canada's recommendation that your monthly rent should only comprise 35 percent of your gross income, it's estimated that newcomers would need to earn over $80,000 per year to afford an average one-bedroom in downtown Toronto.

However, the reality in the City of Toronto is that many people pay more than 35 percent of their gross monthly income in rent.

Living in the City of Toronto is costly

According to the website Numbeo, the average monthly cost of living in Toronto for a single person, excluding rent, is approximately $1,496. To live comfortably in Toronto (or any GTA city), you must earn more than $25 an hour.

Toronto's unemployment rate in October was 8.0 percent, the same as in September. In October 2024, the unemployment rate in Ontario was 6.8 percent, and nationally, it was 6.5 percent.

Toronto is a major entertainment and sport city

City of Toronto home prices rise

Many newcomers to Toronto arrive with the goal of home ownership, but housing prices are high.

And according to Wowa, home prices in the City of Toronto saw strong growth in October. The average home price rose to $1,165,660, up 4.7 percent monthly and 3.4 percent from October 2024.

Home sales in the City of Toronto were up 39 percent monthly and 37 percent annually,

In October, the average home price in the Greater Toronto Area was $1,060,300, down from $1,097,000 a year earlier. Nationally, the average cost of a house in October was $696,166.

Whether renting or buying, housing in the City of Toronto remains far and away the most expensive cost for newcomers and international students.

*Rent and home prices were accurate when this article was published but may change over time.

Sources:

Rentals.ca, Rentsync, Canadian Press, CBC, Numbeo, CREA, Wowa

Steve Tustin is the Content Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

*No AI-generated content was used in the writing of this story, and all sources are cited and credited where possible.