London, Ontario rental market data
London’s rental market has been reshaped by the same forces affecting many mid-sized Ontario cities: spillover demand from the GTA, rapid international student growth, and a construction sector that’s still catching up.
The London CMA vacancy rate eased to approximately 3.2% in October 2025, up from much tighter conditions in previous years. New purpose-built rental construction has boosted supply, though affordability remains a concern relative to local incomes.
| Metric | October 2025 | Year-over-year |
|---|---|---|
| Vacancy rate | ~3.2% | Up from prior year |
| Average 2-bedroom rent | ~$1,500 | Continued growth |
| Market trend | Easing | Improved supply |
For national context, see the Canada rental market overview.
Average rent by bedroom type
| Bedroom Type | Estimated Average (purpose-built) | Asking Rent (listings) |
|---|---|---|
| Studio | ~$1,000 | ~$1,300 |
| 1 Bedroom | ~$1,250 | ~$1,600 |
| 2 Bedroom | ~$1,500 | ~$2,000 |
| 3 Bedroom+ | ~$1,700 | ~$2,300 |
London’s 2-bedroom purpose-built rents (~$1,500) are about 27% cheaper than Toronto (~$2,046), comparable to Edmonton (~$1,500), and cheaper than Hamilton (~$1,600).
Vacancy rate trends
London CMA Vacancy Rate — Purpose-Built Rentals (2015–2025)
London’s vacancy rate tightened through 2018–2019 and hit a low of 1.4% in 2023 before easing as new supply came online and demand moderated.
Rent affordability in London
| Bedroom Type | Monthly Rent (asking) | Annual Cost | Income Needed (30% rule) | London Median HHI |
|---|---|---|---|---|
| 1 Bedroom | ~$1,600 | $19,200 | $64,000 | ~$82,000 |
| 2 Bedroom | ~$2,000 | $24,000 | $80,000 | ~$82,000 |
With a median household income in London of approximately $82,000, a typical household spends about 29% of gross income on a 2-bedroom — near the 30% affordability threshold. Rent growth has outpaced income growth in London over the past five years.
Use our rent affordability calculator for a personalized estimate.
Ontario rent control rules (London)
London follows Ontario’s rent increase guidelines:
| Year | Guideline |
|---|---|
| 2020 | 2.2% |
| 2021 | 0.0% (frozen) |
| 2022 | 1.2% |
| 2023 | 2.5% |
| 2024 | 2.5% |
| 2025 | 2.5% |
- Pre-November 2018 buildings are subject to the annual guideline
- Post-November 2018 buildings are exempt from rent control
- 90 days notice required for any rent increase
Key market drivers
Western University: Western University is London’s largest source of student rental demand, with approximately 34,000 students. Student demand is concentrated in the Old North and Masonville neighbourhoods. Changes to international student visa policies may affect future demand.
Fanshawe College: Fanshawe adds another layer of student-driven rental demand, including significant international student enrollment.
Toronto and GTA spillover: Remote work and housing affordability comparisons have driven migration from the GTA to London, pushing up rents and home prices.
Healthcare hub: London Health Sciences Centre and St. Joseph’s Health Care are major employers, providing stable rental demand.
New construction: Purpose-built rental starts have increased, particularly in the downtown core, helping to rebalance the market.
London, Ontario rental market outlook and tips
2026 outlook: London’’s rental market has eased from the 2021–2022 peak, with vacancy rates improving to approximately 3.5–4%. The city attracted significant interprovincial migration post-COVID but has since seen a return to more balanced conditions. New purpose-built rental supply near Western University and downtown is adding options.
Renting in London: practical tips:
- University proximity premium: Neighbourhoods near Western University (Masonville, Richmond Row, Medway) command 15–25% premium over comparable city-wide units; plan around academic calendar for best availability
- Ontario rent control: London units occupied before November 15, 2018 are subject to Ontario’’s 2.5% annual guideline. Newer units are exempt — ask when the building was first occupied
- Bus network: London Transit (LRT planned for future) provides moderate coverage; car ownership remains practical for many parts of the city
- Downtown London: Significant investment in downtown core with new developments; pricing is more competitive than Masonville or Hyde Park
Frequently asked questions
Is London, Ontario affordable for renters? Yes, relative to Toronto and the GTA. Average 2-bedroom rents of $1,800–$2,200 compare favourably to $2,700–$3,100 in Toronto. London remains one of the more affordable mid-size Ontario cities for renters, particularly outside the university district.
London, Ontario rental market by neighbourhood
| Neighbourhood | Avg 1BR | Character | Transit |
|---|---|---|---|
| Downtown Core | ~$1,500 | Revitalizing, restaurants | LTC central |
| Old North | ~$1,550 | Family, mature trees | Good bus |
| Masonville | ~$1,650 | Near Western, upscale | Moderate bus |
| Byron | ~$1,400 | Southwest, quiet | Moderate bus |
| Argyle/Fanshawe | ~$1,250 | Near Fanshawe College | Bus |
| White Oaks | ~$1,300 | South end, suburban | Bus |
Related pages
- Canada Rental Market Data — national vacancy rates and average rent
- Toronto Rental Market — Ontario’s largest rental market
- Hamilton Rental Market — another mid-sized Ontario city
- Income in London — household income data
- Average Rent in Canada — rent comparison by city
Sources
- CMHC Rental Market Survey — Housing Market Information Portal
- CMHC 2025 Rental Market Report — December 2025
- Ontario Rent Increase Guideline — 2025 guideline