Ontario Rental Snapshot
Milestones, traction & next steps from your AI-powered real-estate partner
Canada’s rental market kept cooling in July. Reports the average asking rent slipped to about $2,121, a 3.6 % year‑over‑year drop, while Nesto puts the figure near $2,108, down 2.2 %. Despite the dip, rents remain roughly 4 % higher than two years ago.
Ontario remains pricey but is sliding faster than most provinces. The average asking rent of roughly $2,325 is down about 3 % from last year. One‑bedroom units have seen the steepest cuts (around 5 %), and suburbs like Oakville ($2,605) and Richmond Hill ($2,565) are now more expensive than downtown Toronto. Sarnia, Windsor and Welland still offer some of the province’s most affordable rents.
On the ownership side, the average resale home price was about $693,300 in July, 3.4 % lower than a year ago, while sales were 3.8 % higher month‑over‑month. Housing starts jumped to 294,100 units (annualized)—the highest since late 2022, thanks to a surge in multi‑family construction. Meanwhile, softer population growth (Canada welcomed 61,000 fewer temporary residents in early 2025) is lengthening lease‑up times and pushing more landlords to offer incentives like one month free rent. Mom‑and‑pop landlords collected rent on schedule only 83.6 % of the time in July.
Short news
Toronto rents dip again: Unfurnished one‑bedroom units in Toronto average about $2,593, roughly 4.6 % lower than a year ago; suburbs like Oakville ($2,605) and Richmond Hill ($2,565) now outrank the core.
Vacancy creeping up: Completions and new starts remain high, and advertised rents fell 2–8 % in Toronto and other major markets as fewer temporary residents slowed demand and landlords offered incentives.
On‑time payments wobble: Independent landlords collected rent on time only 83.6 % of the time in July—a fresh post‑pandemic low.
Rent cap reminder: Ontario’s 2025 rent‑increase guideline stays at 2.5 %, while the province has set a 2.1 % cap for 2026.
Policy Pulse
New development | Why it matters |
|---|---|
Build Canada Homes consultation | Ottawa is soliciting feedback until Aug 29 on a program that would provide $25 billion in loans and $1 billion in equity for large affordable rental projects. |
Ontario adds $1.6 B to infrastructure program | The province topped up its Municipal Housing Infrastructure Program to $3.9 billion, funding roads, bridges and water projects that unlock housing sites. |
Canada Community‑Building Fund | Ottawa released $748 million to Ontario municipalities for transit and water infrastructure tied to housing supply. |
2026 rent cap set at 2.1 % | Ontario’s 2026 rent‑increase guideline is 2.1 %, its lowest in four years, applying to rent‑controlled units built before November 2018. |
Toronto’s renovation licence | As of July 31, landlords must obtain a Rental Renovation Licence before displacing tenants for renovations and provide compensation and a right of return. |
Foreign‑buyer ban extended | Canada’s ban on non‑resident homebuyers now runs through Jan 1, 2027, keeping demand focused on rentals. |
Quick Tip!
Renew wisely. When tenants’ leases come up for renewal, compare your unit against current listings and adjust rent accordingly. Offering a modest discount or perk can keep a good tenant in place, saving you turnover costs.
CasaYa Corner
🎉 Coming soon: We are currently developing a digital Tenant Interviewer that gathers key information, draws rich insights about each applicant, evaluates their fit for your unit based on your preferences, and delivers both an assessment and a full interview transcript for your review.
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