September 2025 Market Update: Rent Trends in Ontario and Across Canada

Canada’s rental market is showing signs of prolonged softening. Reduced immigration and an oversupply of high-priced housing have led to rent declines for the tenth month in a row, according to recent reports.

At the national level, the decreases have been relatively mild, with the steepest drops seen in the largest and most expensive cities. In Ontario, international student caps have added further pressure, particularly in Toronto, dampening demand in a market that previously relied heavily on international tenants.

Key Figures:

• Average national asking rent in July fell slightly to $2,121, down $4 from June.

• Rents are still up 2% compared to two years ago, and 11% compared to three years ago.

• Ontario recorded a 3% rent decline, bringing the average to $2,325.

• Outside of Toronto, Oakville and Markham had the province’s highest average apartment rents at $2,688 and $2,510, respectively.

On the housing side, the Canadian Real Estate Association reported an average national home price of $672,784 in July, down 2.7% from June but slightly up year over year. Ontario home prices remain among the highest in the country at $822,356, despite a 3.5% monthly dip.

With Ontario shifting into a balanced market after months as Canada’s only buyer’s market, property owners can expect continued adjustment in both rental demand and pricing. Looking ahead, experts predict downward pressure on rents will continue into the fall as supply outpaces demand

What this means for property owners:

Now is the time to stay flexible and proactive. Competitive pricing, responsive tenant communication, and professional property management can make a big difference in attracting and retaining quality renters during a softer market.

For support with leasing, tenant management, or maximizing the performance of your rental property, contact Smooth Property Management at 1 (866) 255-1902 or admin@smoothpm.ca.