Ontario Rental Market Report — 2025
Vacancy is up in every major Ontario market. Rents still rose — just more slowly. Here is what CMHC’s 2025 survey actually says, market by market, and what it means if you rent, own, or invest.
Updated: November 5, 2026 | Data: CMHC 2025 Rental Market Survey, published December 11, 2025 | Next update: monthly refresh from December 1, 2026
At a Glance · Market Conditions · Rent by Market · Vacancy · Market by Market · All Ontario Centres · For Renters · For Landlords · For Investors · Monthly Report · FAQ · Coverage & Definitions
At a Glance — 2025
Ontario’s rental markets eased in 2025. Purpose-built vacancy rose to 3.0–4.1% across the seven major markets, up from the very tight conditions of 2023–2024, as new supply arrived and demand from international students and newcomers slowed. Rents still rose — average 2-bedroom purpose-built rents increased 1.6–5.5% year over year — but the pace moderated, and in several markets the rent a new tenant pays (turnover rent) actually fell. The condo rental market stayed much tighter than purpose-built: vacancy for rented condo apartments was just 0.2–1.2% where CMHC measures it.
Source: CMHC 2025 Rental Market Report (published December 11, 2025) and CMHC Housing Market Information Portal, October 2025.
Market Conditions — Is Ontario a Landlord’s or a Tenant’s Market?
Easing — but not a tenant’s market yet. Every major Ontario market loosened in 2025, and tenants have more choice and more negotiating room than they did a year ago. At 3–4% vacancy, a landlord with an average unit can no longer count on a lineup at the door. At the same time, rents did not fall: average 2-bedroom rents rose in all seven major markets, and the condo rental segment — where vacancy is 0.2–1.2% — is still firmly a landlord’s market. The honest read: power shifted toward tenants in purpose-built rentals, especially in Kitchener–Waterloo and London; it barely moved in condos and in low-rent units, where demand is still strong.
| Signal | What happened in 2025 | Read |
|---|---|---|
| Purpose-built vacancy | 3.0–4.1% in all seven major markets, up from tighter conditions a year earlier | Easing |
| Average 2-bedroom rent | Still rose 1.6–5.5% year over year in every major market | Landlord-leaning |
| Rented condo vacancy | Just 0.2–1.2% where CMHC measures it | Tight (landlord) |
| Turnover rents | Fell in several markets as competition rose; in-place (non-turnover) rents were largely flat | Easing |
| New supply | Record rental completions in London; growth in GTA suburbs and Hamilton condos | Easing |
| Student demand | Eased under the federal cap on international study permits; work-permit expiries reduced demand | Easing |
| Tenant mobility | Falling turnover rents made moving more attractive after record-low mobility | Easing |
What this means: if you are renting, 2025 was the best year to negotiate in a long time — especially on a turnover unit in London or Kitchener–Waterloo. If you are a landlord, price to today’s market, not to 2023: overpriced units now sit. If you are an investor, the spread between markets matters more than ever — the gap between the cheapest and most expensive average 2-bedroom rent in the province is nearly $600 a month.
Source: CMHC 2025 Rental Market Report, Ontario market sections.
Average 2-Bedroom Rent by Market (Purpose-Built)
The GTA still commands the highest purpose-built rents in Ontario at $2,034 a month for an average 2-bedroom — $580 more than Windsor, the lowest of the seven major markets.
Source: CMHC 2025 Rental Market Report, average rent for 2-bedroom purpose-built apartments, October 2025. Bars scaled to $2,100.
Purpose-Built Vacancy Rate by Market
Kitchener–Waterloo (4.1%) and London (4.0%) are the loosest major rental markets in Ontario. The GTA and Ottawa are the tightest at 3.0% — still well above the near-1% vacancy of the early 2020s.
Source: CMHC 2025 Rental Market Report, purpose-built rental apartment vacancy rate, October 2025. Bars scaled to 4.5%.
Market by Market — 2025
The seven major markets below are the ones CMHC covers in the headline section of its 2025 report. Each card shows the purpose-built figures and, where CMHC publishes them, the rented-condo figures. Thirteen more Ontario centres follow in the next section.
Greater Toronto Area
| Purpose-built vacancy | 3.0% |
| Avg. 2-bedroom rent (purpose-built) | $2,034 (+3.5%) |
| Rented condo vacancy | 1.0% |
| Avg. 2-bedroom rent (rented condo) | $2,904 |
Easing continued in 2025. Lower international student enrolment weighed on demand, and vacancy ran higher in post-secondary areas. Newer buildings carried above-average vacancy, and as the economy faltered, unemployment and vacancies rose together. Condo rentals stayed tight at 1.0% vacancy, though turnover rents fell and incentives appeared. More supply is coming, especially in the suburbs.
Run the numbers on a GTA deal → · Investment properties in the GTA
Hamilton
| Purpose-built vacancy | 3.6% |
| Avg. 2-bedroom rent (purpose-built) | $1,656 (+1.6%) |
| Rented condo vacancy | 1.2% |
| Avg. 2-bedroom rent (rented condo) | $2,831 |
Vacancy rose to 3.6%, the highest since COVID, as international student outflow cut demand while supply was mostly unchanged — though new condo completions downtown added competition. Turnover rents stalled. More supply is on the way in the second- and third-rent quartiles, which should keep pressure on landlords at the top end.
Run the numbers on a Hamilton deal → · Investment properties in Hamilton
Kitchener–Cambridge–Waterloo
| Purpose-built vacancy | 4.1% |
| Avg. 2-bedroom rent (purpose-built) | $1,832 (+3.3%) |
| Rented condo vacancy | 0.8% |
| Avg. 2-bedroom rent (rented condo) | $2,197 |
Vacancy held at 4.1%, the loosest of the seven major markets. Supply grew 2.8% and skewed toward high-end units; student demand eased under the federal cap on study permits, and a weaker economy reduced demand. Turnover rent growth stalled.
Run the numbers on a KCW deal → · Investment properties in Kitchener
London
| Purpose-built vacancy | 4.0% |
| Avg. 2-bedroom rent (purpose-built) | $1,651 (+4.1%) |
| Rented condo vacancy | 0.2% |
| Avg. 2-bedroom rent (rented condo) | $2,132 |
The highest vacancy rate since 2010. Fewer international students — work permits expiring and not being renewed — and a tariff-weakened manufacturing and transportation sector cut demand, while rental completions hit another record high. Turnover rents fell, and tenants are more willing to move than they have been in years. Condo rentals are a different world: 0.2% vacancy.
Run the numbers on a London deal → · Investment properties in London
Ottawa
| Purpose-built vacancy | 3.0% |
| Avg. 2-bedroom rent (purpose-built) | $1,926 (+3.4%) |
| Rented condo vacancy | 0.6% |
| Avg. 2-bedroom rent (rented condo) | $2,503 |
Vacancy rose slightly to 3.0% as new completions met slower demand from fewer international migrants and students; availability rose most around the universities (Sandy Hill and Lowertown). Demand stayed strong for low-rent units while vacancy rose for higher-rent ones, and rent growth slowed. Condo vacancy stayed low at 0.6% even as condo rental supply grew 10%.
Run the numbers on an Ottawa deal → · Investment properties in Ottawa
St. Catharines–Niagara
| Purpose-built vacancy | 3.9% |
| Avg. 2-bedroom rent (purpose-built) | $1,527 (+5.5%) |
| Rented condo figures | Not published by CMHC for this market |
Vacancy was steady at 3.9%. Niagara Falls ran higher as work-permit expiries and a weaker labour market cut demand, while supply grew 1.8%; St. Catharines core was stable. Turnover rents were largely unchanged while in-place rents increased — the premium for moving is real here. Fastest rent growth of the seven major markets (+5.5%), from the lowest base.
Run the numbers on a Niagara deal → · Investment properties in Niagara
Windsor
| Purpose-built vacancy | 3.7% |
| Avg. 2-bedroom rent (purpose-built) | $1,454 (+3.6%) |
| Rented condo figures | Not published by CMHC for this market |
Vacancy stayed high at 3.7% for a second year of fewer international students and temporary foreign workers, plus tariff headwinds in the auto sector. The rental stock grew 3.6%, mostly in suburban zones. Turnover rents were unchanged. Windsor has the lowest average 2-bedroom rent of the seven major markets — which is why it keeps appearing on cash-flow lists.
Run the numbers on a Windsor deal → · Why Windsor ranks for cash flow
Source: CMHC 2025 Rental Market Report, Ontario market sections, October 2025.
All Other Ontario Centres
CMHC surveys far more than the seven major markets. The table below covers thirteen more Ontario centres, from Guelph ($1,803) to Cornwall ($1,276). Two things to note: these figures come from CMHC’s data tables rather than the report’s headline section, so they differ very slightly from the headline figures above (for example, the portal shows London at $1,645 and Kitchener–Cambridge–Waterloo at $1,816, against $1,651 and $1,832 in the report). Same survey, same month — the report rounds and aggregates differently. And the tightest market in this group is Greater Sudbury at 1.1% vacancy; the loosest is Sarnia at 4.9%.
| Centre | Avg. 2-bed rent | Total vacancy |
|---|---|---|
| Guelph | $1,803 | 2.9% |
| Kingston | $1,763 | 2.4% |
| Oshawa | $1,762 | 3.6% |
| Barrie | $1,749 | 4.2% |
| Brantford | $1,604 | 3.2% |
| Greater Sudbury | $1,555 | 1.1% |
| Peterborough | $1,513 | 3.3% |
| Sarnia | $1,502 | 4.9% |
| Thunder Bay | $1,493 | 3.9% |
| Belleville–Quinte West | $1,476 | 3.3% |
| North Bay | $1,404 | 2.7% |
| Chatham-Kent | $1,365 | 4.4% |
| Cornwall | $1,276 | 3.5% |
| Ontario (all centres) | $1,821 | 3.2% |
Source: CMHC Housing Market Information Portal, Rental Market Survey, October 2025, purpose-built Row / Apartment, average rent by bedroom type and vacancy rate by bedroom type (total). Sorted by average 2-bedroom rent.
For Renters — What to Do With This Market
- Negotiate. At 3–4% vacancy, ask for a rent reduction or an incentive — especially on a turnover unit in London or Kitchener–Waterloo.
- Check the turnover rent, not just the listing price. Turnover rents fell in several markets in 2025. Ask what the previous tenant paid.
- Know the guideline. The Ontario rent increase guideline for 2026 is 2.1% for rent-controlled units (built or first occupied on or before November 15, 2018). Your landlord cannot raise an in-place rent above it.
- Compare condo vs purpose-built. A GTA 2-bedroom condo averages $2,904 a month against $2,034 purpose-built. The premium buys newer stock and often a downtown address — decide whether it is worth $870 a month to you.
Looking for a place to rent? Search homes for rent and for sale →
For Landlords — What to Do With This Market
- Price to today’s market. Turnover rents fell in 2025. An overpriced unit now sits vacant — and every vacant month costs more than a small rent cut.
- Underwrite vacancy honestly. Budget 2–4% vacancy, even in the GTA. The 0–1% days are over for now.
- Mind the 2026 guideline. 2.1% on rent-controlled units. Plan increases around it — and remember buildings first occupied after November 15, 2018 are exempt.
- Compete where supply is coming. Record completions in London, new condos downtown Hamilton, growth in the GTA suburbs. Condition and location decide who leases first.
Thinking of selling instead? Find out what your property is worth →
For Investors — Where the Numbers Point
The spread is the story. The cheapest major-market 2-bedroom rent (Windsor, $1,454) is $580 below the GTA ($2,034) — and the purchase prices are far further apart. Lower price points in Windsor, London and Kitchener–Waterloo are where the cash-flow math works best. Condos are tight everywhere: 0.2% vacancy in London, 0.6% in Ottawa, 1.0% in the GTA. Condo rents run $400–$900 above purpose-built in the same market — but so do condo prices and fees. And average rents are a starting point, not a promise: run every deal on its own numbers.
Run the Deal Analyzer →Affordability CalculatorBest Cash Flow Cities
Monthly MLS Lease Data: HabiStat
CMHC’s survey is annual and measures October. For what is happening right now — leases signed last month, days to lease, rent against asking — Sim pulls live MLS lease data from HabiStat (via PropTx). Ask for the latest lease numbers for any market, neighbourhood or building. The monthly refresh of this report begins December 1, 2026.
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Who Writes This Report
Sim Sahota, REALTOR® and CPA, CA, Coldwell Banker. I work with investors across the GTA, Kitchener–Waterloo, London, Hamilton, and I run every deal through the Investment Deal Analyzer before I show it to a client. Questions about a market in this report? Call or text 647-632-0871 or email sim@simsahota.com.
Frequently Asked Questions
Where do the numbers come from?
CMHC’s 2025 Rental Market Survey (October 2025, published December 11, 2025) for the seven major markets; CMHC’s Housing Market Information Portal for the other centres; HabiStat (MLS lease data) for monthly figures on request.
Why does another source show a different rent or vacancy for my city?
Different surveys measure different things. CMHC’s survey is an October snapshot of purpose-built apartments. MLS lease data counts leases signed each month. Asking rents on listing sites are not the same as rents actually achieved.
Why are condo rents so much higher than purpose-built rents?
Condo rentals are newer, more often downtown, and include features purpose-built stock often lacks. In the GTA the gap is $870 a month on an average 2-bedroom ($2,904 vs $2,034).
Does a higher vacancy rate mean rents are falling?
Not yet. Average rents rose in all seven major markets in 2025. What changed is the rate of increase — and turnover rents (what a new tenant pays) fell in several markets, which is the first place a slowdown shows.
What is the 2026 rent increase guideline?
2.1%. It caps annual rent increases for rent-controlled units — buildings first occupied on or before November 15, 2018. Newer buildings are exempt.
How often is this report updated?
The CMHC figures are the 2025 survey. This page is refreshed monthly from December 1, 2026 with HabiStat MLS lease data. Email Sim to get the monthly version by email.
Can I get the numbers for my street or building?
Yes. Ask Sim — he pulls MLS lease data (HabiStat) for any market, neighbourhood or building on request.
Coverage, Key Definitions & Limitations
Coverage
This report covers the six major Ontario markets in CMHC’s 2025 Rental Market Report (Greater Toronto Area, Hamilton, Kitchener–Cambridge–Waterloo, London, St. Catharines–Niagara, Windsor) plus eight additional Ontario centres from CMHC’s Housing Market Information Portal (Barrie, Belleville–Quinte West, Brantford, Chatham-Kent, Guelph, Kingston, Oshawa, Peterborough). Monthly MLS lease figures (HabiStat) are available on request and are added in the monthly refresh. Not covered: towns outside the CMHC survey, rooming houses, and the secondary rental market beyond the condo figures shown.
Key Definitions
- Vacancy rate: the share of rental units with no tenant at the time of the October survey.
- Average rent: the average monthly rent for occupied units of that bedroom type in the October survey.
- Purpose-built rental: apartments built specifically to be rented (not condos).
- Rented condo apartments: condominium units owned by individual investors and rented out; measured only in the GTA, Hamilton, Kitchener–Cambridge–Waterloo, London and Ottawa.
- Turnover rent: the rent on a unit whose tenant changed. Non-turnover rent is the rent on a unit whose tenant stayed.
- Same-sample rent growth: rent change measured on the same set of buildings, so new expensive buildings do not skew the figure.
- Rent quartiles: the rental stock divided into four groups by rent level.
How the Reads Are Made
Market readings combine the vacancy rate, the direction of rent growth, turnover-rent movement and condo tightness. “Easing” means vacancy is up and tenants have more choice; “tight” means vacancy is low and landlords have the advantage.
Limitations
The CMHC figures are an October 2025 snapshot and are published annually; they do not capture month-to-month movement. Small samples are suppressed by CMHC where they are not statistically reliable — which is why condo figures are not published for St. Catharines–Niagara and Windsor. Portal figures for additional centres use the Row / Apartment subset and differ very slightly from the report’s headline figures. CMHC may revise figures after publication. This report is general information, not investment advice; run each deal through the Investment Deal Analyzer and confirm figures with your own due diligence.
Sources
- CMHC, 2025 Rental Market Report, published December 11, 2025.
- CMHC, Housing Market Information Portal — Ontario rental market statistics, October 2025.
- HabiStat rental market analytics (MLS lease data, on request).
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