Are You Overpaying on Rent in Toronto?

Toronto rent moves fast. One year you sign a lease and feel lucky. The next year, the same unit type in the same building is going for a totally different number — sometimes higher, sometimes lower (yes, it happens). If you haven't checked the market recently, there's a real chance you're paying more than you need to.
A rent review is a simple way to answer one question: If I rented this place today, what would it cost?

The market has shifted dramatically. Toronto rents are at their lowest point since early 2022, down 11.8% over the past two years. In December 2025 alone, the average apartment rent dropped to $2,498 per month — a 5.1% decline compared to the previous year.
Here's what's happening by unit type:
• 1-bedroom apartments: $2,228/month (down 6.1% year-over-year)
• 2-bedroom apartments: $2,826/month (down 8.8% year-over-year)
• 3-bedroom apartments: $3,508/month (down 5.6% year-over-year)
This is not a small correction. It's a meaningful market shift driven by increased supply, slowing population growth, and more units competing for tenants. If you signed your lease 18-24 months ago at peak pricing, you could be overpaying by hundreds of dollars per month.

Toronto's rental market prices vary by neighborhoods, building types, and unit layouts can swing pricing dramatically:
• Condos vs purpose-built rentals often price differently even on the same street
• Older buildings with bigger layouts can compete surprisingly well
• New listings are increasingly offering incentives (free months, lower rates) to get leased quickly
Similar units in the same building can vary based on floor, view, parking, locker, and renovations.
Vacancy rates have climbed to 3.7% in Toronto — the highest since pre-pandemic — giving tenants more negotiating power. So even if your rent "feels normal," it's worth checking whether the market has shifted under you.

A proper rent review isn't just "I saw a listing online." It compares your unit to true comps — rentals that are similar:
• Same building (best comps) or nearby comparable buildings
• Same bedroom/bath count
• Similar square footage/layout
• Same parking/locker situation
• Similar floor/view/exposure
• Condition/renos and included utilities
• Current incentives being offered (we are starting to see 1-2 months free rent incentives)
Then we look at recent leased prices, not just asking prices. Listings can be optimistic; leased data tells the truth. And right now, with 63% of newer buildings offering incentives, the effective rent (what tenants actually pay after incentives) is often 7-10% lower than advertised.

A rent review gives you options: Negotiate at renewal
If your rent is clearly above market, you can use comps to have a calm, rational conversation with your landlord. With vacancy rates rising and landlords competing harder for tenants, there's real leverage here.

• Your rent jumped a lot at renewal without any upgrades
• Similar units in your building listed for less
• Your neighborhood has seen a wave of new rental inventory
• You haven't checked comps since you signed your lease (especially if that was 2022-2023)
• Your rent is still at 2023 peak levels ($2,800+ for 2-bedrooms, $2,500+ for 1-bedrooms)
• You're not getting any incentives while new tenants are
The market context you need to know
December 2025 marked the slowest month for rental demand in two years. With five straight months of declining prospect counts since July's peak, landlords are increasingly motivated to fill units. Some are holding out, but many are adjusting to the new reality.
Supply is up. Demand has cooled. That combination creates opportunity for renters willing to do their homework.

If you send:
• Your building/intersection
• Unit type (1+1, 2 bed, etc.)
• Parking/locker (yes/no)
• Your current rent and renewal offer (if you have it)
…I can tell you where you sit versus current Toronto comps and what a smart next move looks like.