Ontario rental market data
Ontario is Canada’s largest rental market, home to more purpose-built rental apartments than any other province. The market is dominated by the Toronto CMA, but cities like Ottawa, Hamilton, and London are significant rental centres in their own right.
In 2025, Ontario’s rental market eased across most CMAs as new supply — particularly purpose-built rental construction at levels not seen in decades — began to absorb excess demand.
Average rent by city (Ontario)
| City | 2BR Purpose-Built | 2BR Asking Rent | Vacancy Rate |
|---|---|---|---|
| Toronto | ~$2,046 | ~$3,100 | 3.0% |
| Ottawa | ~$1,800 | ~$2,300 | 2.7% |
| Hamilton | ~$1,600 | ~$2,200 | ~3.0% |
| London | ~$1,500 | ~$2,000 | ~3.2% |
Ontario asking rents average approximately $2,050 for a 1-bedroom and $2,500 for a 2-bedroom across the province — driven upward by the GTA’s high prices.
Ontario rent control rules
Ontario has a split rent-control system:
| Year | Guideline |
|---|---|
| 2020 | 2.2% |
| 2021 | 0.0% (frozen) |
| 2022 | 1.2% |
| 2023 | 2.5% |
| 2024 | 2.5% |
| 2025 | 2.5% |
Key rules:
- Pre-November 2018 buildings — Subject to the annual guideline
- Post-November 2018 buildings — Exempt from rent control (no cap on increases)
- 90 days written notice required for any rent increase
- Once per 12 months — Only one increase per year
- Above-guideline increases — Landlords can apply for more based on capital expenditures, extraordinary operating costs, or security services
The November 2018 cutoff creates a two-tier market where older buildings have below-market rents while newer buildings price at full market rates.
Vacancy rate trends across Ontario
Vacancy Rate by Ontario CMA (2023–2025)
All four major Ontario CMAs saw vacancy rates increase in 2025, reflecting the province-wide trend of improving supply conditions.
Key market drivers
Population growth: Ontario remains the top destination for immigrants to Canada, driving rental demand — particularly in the GTA and Ottawa.
New supply wave: Purpose-built rental construction has surged across Ontario, with Toronto, Ottawa, and Hamilton all seeing significant completions. CMHC noted Ottawa experienced “the largest rise in new rental supply in the city in almost 50 years.”
International student policy: Changes to international student visa policies may reduce demand in university cities like London, Hamilton, and Ottawa.
Remote work: The shift to remote and hybrid work has redistributed some demand from Toronto to smaller Ontario cities, narrowing the rent gap.
Ontario city rental market pages
- Toronto Rental Market — Canada’s largest rental market
- Ottawa Rental Market — Canada’s capital city
- Hamilton Rental Market — GTA spillover market
- London Rental Market — southwestern Ontario hub
Renting in Ontario: tenant rights overview
Ontario’’s Residential Tenancies Act provides some of Canada’’s strongest tenant protections:
- Rent increase guideline: 2025 guideline = 2.5%; increases above guideline require Landlord and Tenant Board (LTB) approval
- Exempt units: Units first occupied for residential purposes after November 15, 2018 are exempt from rent control
- Notice required: 90 days written notice (3 months) before a rent increase
- Security deposit: Only last month’’s rent (not a damage deposit) is permitted in Ontario
- Dispute resolution: Landlord and Tenant Board (LTB) — significant backlog in 2024–2025
Average rents — Ontario (2025)
| City | Avg 1BR | Avg 2BR | Vacancy rate |
|---|---|---|---|
| Toronto | ~$2,400 | ~$3,000 | ~1.8% |
| Ottawa | ~$1,950 | ~$2,400 | ~2.5% |
| Hamilton | ~$1,700 | ~$2,100 | ~2.8% |
| London | ~$1,550 | ~$1,900 | ~3.5% |
| Kitchener-Waterloo | ~$1,700 | ~$2,050 | ~2.9% |
Frequently asked questions
Does Ontario’’s rent control apply to new condos? Units first occupied for residential use after November 15, 2018 are exempt from rent control under changes made by the Ford government. This means landlords of new condos and purpose-built units built since 2018 can raise rents to any amount with 90 days’’ notice. Pre-2018 units remain under the guideline.
What is the LTB backlog in Ontario? The Landlord and Tenant Board has faced severe processing backlogs since 2020. Wait times for hearings extended to 12–24 months at peak. The government has added adjudicators and introduced online hearings to address the backlog. As of 2025–2026, wait times have improved but remain longer than pre-pandemic. This affects both landlord (eviction) and tenant (maintenance) applications.
Ontario rental supply challenge
Ontario faces a significant rental supply gap. Key data:
- CMHC estimates Ontario needs 1.5 million+ new homes by 2031 to restore affordability
- Annual rental completions (2024): ~40,000 units provincewide
- Annual household formation: estimated 90,000–110,000 new households
- Gap: ~50,000–70,000 units/year below household formation
Provincial measures include the Housing Supply Action Plans (multiple iterations), as-of-right zoning for duplexes through fourplexes province-wide, and reduced development charges for purpose-built rental. Impact on supply is expected to be gradual — rents are unlikely to decline significantly before 2027–2028 at the earliest.
Related pages
- Canada Rental Market Data — national overview
- Average Rent in Canada — rent comparison by city and province
- Income in Ontario — provincial income data
- Ontario Housing Market — home prices and trends
Sources
- CMHC Rental Market Survey — Housing Market Information Portal
- CMHC 2025 Rental Market Report — December 2025
- Ontario Rent Increase Guideline — 2025