TORONTO, August 13, 2026 – Average rents across Canada are still declining, but Toronto is beginning to show signs of a turnaround. The latest report from Rentals.ca and Urbanation shows that the average asking rent in Canada was $2,037 in July, down four per cent from a year earlier. It was the 22nd consecutive month that rents remained below the same period last year.
However, on a monthly basis, national rents have now increased for four straight months. July rents were up 0.2 per cent from June. Although the increase was small, it suggests the rental market that had been falling for months is beginning to stabilize. Toronto showed the clearest change.
In July, the average asking rent for apartments and condos in Toronto reached $2,577, up 1.6 per cent from June. It was the fourth consecutive monthly increase and the largest monthly gain among Canada’s six major cities. Compared with last year, Toronto rents are now only 0.6 per cent lower.
The report suggests one reason is that supply is beginning to shrink. Rental listings in Toronto were down about six per cent year over year, fewer new condo units entered the rental market, and some rental demand that had previously been suppressed by high prices has started to return.
But outside the city of Toronto, the situation is different. For example, rents in Markham in July were still down 11.9 per cent from the same period last year, making it one of the markets with a more noticeable decline nationwide.
As late August and September approach, many university students and new renters will begin looking for housing at the same time. For renters with limited budgets, there may still be more room to negotiate in some GTA communities if they are willing to live farther from downtown.
For landlords, the next few months will also be worth watching. They may consider whether to adjust rents within Ontario’s rent increase rules, depending on market conditions. Whether Toronto’s latest increase is only a seasonal back-to-school change or the beginning of a real rent rebound will depend on the coming months.
At least based on the current trend, the period of steady rent declines in Toronto is slowly changing, and the cheapest stage of the rental market may be starting to pass.（LJI by Yuanyuan）
