Toronto Rents Are Falling—But Not for Every Landlord. Here’s What the September Numbers Actually Show

Your friend owns a one-bedroom condo and just reduced the rent by $100.

You own a three-bedroom rental.

Should you lower yours too?

Not necessarily.

The latest Toronto rental numbers make this especially clear.

In September 2026, average asking rent for purpose-built and condo apartments in Toronto was approximately:

$2,554 per month

down 1.4% from a year earlier.

It was also Toronto’s 32nd consecutive month of year-over-year rent decline, and the lowest average September asking rent seen in the city since 2021.

At first glance, the message seems simple:

Toronto rents are falling.

But look one level deeper.

September average asking rents were:

1-bedroom: $2,228 — down 2.9% year-over-year

2-bedroom: $2,943 — essentially flat, up 0.1%

3-bedroom: $3,586 — up 1.8%

Toronto was actually the only one of Canada’s six largest markets where three-bedroom rents increased year-over-year in September.

So what should landlords take from this?

Not:

“Rents are down, so reduce the rent.”

The better lesson is:

Your rental strategy should depend on what you own — not just the Toronto average.

“Toronto Rents Are Down” Doesn’t Tell You Enough

Rental market headlines usually need to summarize an entire city in one number.

That is useful for understanding the general direction of the market.

But a landlord cannot price an individual property using one citywide average.

Consider how different these rentals are:

• A 500-square-foot one-bedroom downtown condo.
• A two-bedroom condo near North York Centre.
• A three-bedroom unit suitable for a family.
• A townhouse in Markham.
• A detached rental in Richmond Hill.
• A basement apartment in Scarborough.

They may all be located within the broader GTA rental market.

But they do not necessarily compete for the same tenant.

That is why a report saying:

“Toronto rents fell 1.4%”

doesn’t automatically mean:

your property should be priced 1.4% lower.

You need to know what is happening in your specific segment.

One-Bedroom, Two-Bedroom and Three-Bedroom Rentals Are Moving Differently

September’s data illustrates this very clearly.

One-bedroom rentals

Average Toronto asking rent:

$2,228

Year-over-year change:

-2.9%

This suggests smaller rental units continue to face pricing pressure.

That makes sense in a market where tenants may be able to compare many similar units based on:

• price;
• building;
• location;
• view;
• parking;
• and incentives.

If there are ten similar one-bedroom condos competing within the same neighbourhood, a tenant can quickly compare them.

A landlord who is noticeably above the competition may struggle to generate interest.

Two-bedroom rentals

Average asking rent:

$2,943

Year-over-year change:

+0.1%

Essentially flat.

That tells a different story.

It doesn’t mean every two-bedroom unit is strong.

It means the segment, at the city level, was much more stable than one-bedroom rentals.

Three-bedroom rentals

Average asking rent:

$3,586

Year-over-year change:

+1.8%

Here, the trend moved in the opposite direction.

Three-bedroom rents increased even while the broader Toronto average declined.

This is a good example of why landlords should avoid making decisions from a headline alone.

Why Might Larger Units Behave Differently?

Different rental types serve different tenant groups.

A one-bedroom renter may have many substitutes.

They may compare:

• another condo;
• a purpose-built rental;
• a different neighbourhood;
• a studio;
• or living with a roommate.

But someone specifically searching for three bedrooms may have different priorities.

They might be:

• a family;
• a household with children;
• multiple working adults;
• or someone who needs additional space for a home office.

For these tenants, factors such as:

• school access;
• parking;
• layout;
• storage;
• commute;
• outdoor space;
• and neighbourhood

may matter as much as the headline rent.

And depending on the area, there may simply be fewer comparable three-bedroom properties available.

That does not mean three-bedroom landlords can charge whatever they want.

It means:

the competitive environment can be different.

Don’t Price a Markham Townhouse Based on a Toronto One-Bedroom Report

This is one of the most important practical lessons.

Suppose you own a townhouse in Markham.

You read:

“Toronto one-bedroom rents fell 2.9%.”

Should you immediately reduce your townhouse rent by 2.9%?

No.

Those properties are serving different tenants in different locations.

Even across the GTA, average asking rents vary.

The September Rentals.ca report showed average apartment and condo asking rents of approximately:

• North York: $2,516
• Markham: $2,393
• Mississauga: $2,310
• Vaughan: $2,299

But even these city averages are only starting points.

A two-bedroom condo beside transit can behave differently from another two-bedroom condo several kilometres away.

A townhouse with two parking spaces can compete differently from one with only one.

A recently renovated unit can behave differently from a dated property.

And a rental located near strong transit, schools or employment centres may appeal to a different tenant pool.

Micro-location matters.

Asking Rent and Actual Leased Rent Are Also Different

There is another important distinction landlords should understand.

The Rentals.ca report primarily tracks:

asking rents.

In other words:

what properties are being advertised for.

That does not necessarily equal:

what tenants ultimately agree to pay.

TRREB’s rental market data gives us another perspective based on MLS rental transactions.

In Q2 2026, the average GTA condo apartment rent was:

$2,273 for a one-bedroom, down 2.3% year-over-year.

And:

$3,013 for a two-bedroom, down 1.7%.

TRREB also reported that renters continued to benefit from substantial choice, with 27,844 condo apartments listed for rent during the quarter, up 2.9% from a year earlier.

So when pricing a property, landlords should ideally look at both:

what competing landlords are asking

and

what comparable properties are actually leasing for.

The second number can sometimes be more revealing.

Your Competitor Isn’t the “Toronto Average”

Imagine you own a one-bedroom condo.

You want:

$2,550/month.

You search online and see another one-bedroom asking:

$2,600.

So you think:

“I’m already cheaper.”

But then you discover:

five similar units in the same area are asking between:

$2,300 and $2,425.

The $2,600 listing may not be evidence that your price is reasonable.

It may simply be another overpriced listing.

This is why landlords should not compare their rental against:

the highest asking price they can find.

Instead, ask:

What are tenants actually choosing between?

How Do You Know If YOUR Rent Is Too High?

Rather than asking:

“Are Toronto rents falling?”

ask:

“What is my listing telling me?”

Here are several useful signals.

1. Very few inquiries

If your rental receives almost no meaningful interest, the problem could be:

• price;
• poor photos;
• weak exposure;
• or a combination of all three.

If comparable listings are generating activity while yours is quiet, price becomes increasingly important to review.

2. Many inquiries, but few showings

This can suggest a different issue.

Maybe tenants want more information.

Maybe scheduling is difficult.

Maybe the listing does not clearly explain:

• parking;
• utilities;
• move-in date;
• building rules;
• or property features.

3. Lots of showings, but nobody applies

This is a particularly useful signal.

People liked the listing enough to visit.

But after seeing the property, they chose something else.

Why?

Possibilities include:

• condition;
• layout;
• cleanliness;
• building appearance;
• price;
• or stronger competing listings.

4. Everyone asks whether the rent is negotiable

One person asking does not tell you much.

But if several qualified prospects independently react the same way, it is information worth paying attention to.

5. Competitors keep leasing while your property stays active

This may be one of the clearest signals.

If comparable rentals appear and disappear while your listing remains available, something needs to be reviewed.

Don’t Wait for the Market to Tell You for 30 Days

A common landlord strategy is:

“Let’s list high first. We can always lower it later.”

Sometimes that works.

But there is a cost to testing an unrealistic price for too long.

The first days after a rental hits the market are important because the listing is:

new;

visible;

and being seen by tenants actively searching.

If tenants repeatedly pass over it because the price is too high, you may eventually reduce the rent.

But now the listing is:

older.

It has accumulated days on market.

And tenants may wonder:

“Why hasn’t this rented yet?”

That does not mean you need to panic after three days.

But landlords should monitor the response rather than simply waiting.

A Small Rent Adjustment Can Sometimes Cost Less Than Vacancy

Suppose you hope to rent your property for:

$2,800/month.

But comparable properties suggest the market is closer to:

$2,700.

The difference is:

$100 per month.

Over one year:

$1,200.

Now compare that with one additional month of vacancy:

$2,800 in lost rent.

This does not mean:

always lower the rent.

But it shows why landlords should think about:

annual rental income

rather than only:

the highest monthly number.

A slightly lower rent with a strong tenant who stays can sometimes produce a better result than holding out for a higher number while the property remains vacant.

But Don’t Automatically Lower Your Rent Either

The opposite mistake also happens.

A landlord sees:

“Toronto rents declining.”

Then immediately cuts the asking rent.

But perhaps:

• the property was already competitively priced;
• inquiries were strong;
• showings were booked;
• and similar units were leasing quickly.

In that case, the market may already be telling you:

your price is working.

Rental pricing should be based on evidence.

Not fear.

Not one headline.

And not what another landlord says their property rented for three years ago.

Fall Is Also Different From Summer

September also brought a normal seasonal shift.

Toronto rents fell approximately 0.6% from August to September, marking a second consecutive monthly decline after rents had increased for several months during spring and early summer. Rentals.ca noted that this was consistent with typical seasonal patterns as the market moved away from peak summer leasing activity.

This matters.

A landlord listing in:

June

may experience a different market from someone listing the exact same property in:

November.

There may be fewer tenants actively moving.

Students may already have housing.

Families may be less interested in changing homes during the school year.

Weather can make moving less appealing.

So if you rented your unit for:

$2,850 last summer

that does not automatically prove:

$2,850 is still today’s market rent.

“My Previous Tenant Paid $2,900” Is Not a Pricing Strategy

This is another common problem.

A landlord thinks:

“My previous tenant paid $2,900, so I need at least $2,900 again.”

But the next tenant does not care what the previous tenant paid.

They are comparing:

your property

against

today’s alternatives.

If comparable units are now leasing around $2,750, the old lease does not create today’s market value.

On the other hand, if the property has:

improved;

become more desirable;

or now faces limited competition,

the previous rent may also be too low.

The market needs to be re-evaluated each time.

What Should Landlords Compare Before Setting the Rent?

Before listing, we would look beyond one average number.

Property type

Condo?

Townhouse?

Detached home?

Basement?

Bedroom count

One-bedroom demand can behave differently from three-bedroom demand.

Exact location

Not just:

“Toronto.”

But:

which neighbourhood?

How close to transit?

Schools?

Shopping?

Major roads?

Employment?

Recent leased comparables

What have similar properties actually rented for?

Current competition

What would a tenant see if they searched today?

Days on market

How long are similar rentals taking to lease?

Included features

Parking?

Locker?

Utilities?

Furniture?

Outdoor space?

Property condition

A renovated unit and a dated unit should not automatically be priced the same just because they have the same number of bedrooms.

Tenant Quality Still Matters

There is another reason landlords should not focus exclusively on:

maximum rent.

Suppose you have two potential tenants.

One is willing to pay slightly more but has a weaker overall application.

Another is offering a little less but has:

stable income;

strong documentation;

good references;

and a profile that fits the property.

Which is better?

There is no universal answer.

But:

$100 more rent does not automatically make someone the better tenant.

The financial impact of:

missed rent;

turnover;

damage;

or a difficult tenancy

can be much larger than a modest monthly rent difference.

Pricing and tenant screening should therefore be considered together.

What Does the Current Market Mean for GTA Landlords?

The current rental market is not simply:

good for tenants

or:

bad for landlords.

It is becoming more selective.

Tenants have more ability to compare options.

Landlords need to be more realistic about pricing.

But demand has not disappeared.

TRREB reported 21,251 GTA condo apartment rental transactions in Q2 2026, up 4.2% from a year earlier.

Rental transactions were actually growing faster year-over-year than the number of new rental listings during that quarter.

So the story is not:

“Nobody is renting.”

People are renting.

The question is:

Which properties are they choosing?

Topromanage Perspective

For landlords, the biggest mistake right now may be treating the GTA rental market as one single number.

Toronto average rent down?

That is useful information.

But it does not tell you exactly what to charge for:

your one-bedroom condo;

your Markham townhouse;

your Richmond Hill detached home;

or your Vaughan rental.

The right pricing decision comes from comparing:

property type + location + current competition + recent leases + tenant response.

And after the property is listed, you need to keep watching what the market is telling you.

Because sometimes the answer is:

reduce the rent.

Sometimes it is:

improve the listing.

Sometimes it is:

make the property show better.

And sometimes:

do nothing — the price is already working.

The goal should not be to chase the highest possible asking rent.

It should be to find the pricing and tenant strategy that produces a strong overall rental outcome.

Not Sure What Your Rental Should Be Listed For?

If you own a rental property in:

Toronto, Markham, Richmond Hill, Vaughan, Mississauga or elsewhere in the GTA,

ToproManage can help you evaluate your rental in the context of today’s market.

Send us:

Property location

Property type

Current or expected rent

and we can help you look at how your property compares with current rental competition.

ToproManage also assists landlords with:

• Rental marketing
• Tenant screening
• Rent collection
• Tenant communication
• Maintenance coordination
• Property inspections
• Move-in and move-out management
• Ongoing property management

Because knowing that:

“Toronto rents are down 1.4%”

is interesting.

Knowing:

what your specific property should do about it

is much more useful.

Frequently Asked Questions

Are Toronto rents falling in 2026?

Toronto average asking rents for purpose-built and condo apartments were down 1.4% year-over-year in September 2026, according to the October Rentals.ca and Urbanation National Rent Report.

However, different unit sizes showed different trends.

How much was a one-bedroom rental in Toronto in September 2026?

The average asking rent was approximately $2,228, down 2.9% year-over-year.

What about two-bedroom rentals?

The average asking rent was approximately $2,943, essentially unchanged from a year earlier.

Are three-bedroom rents falling too?

Not in the September Toronto data.

Average three-bedroom asking rent increased 1.8% year-over-year to approximately $3,586.

Should landlords lower their rent because the market is declining?

Not automatically.

Pricing should consider the specific property, neighbourhood, competing listings, recent leased comparables and response from prospective tenants.

Should I base my rent on what my previous tenant paid?

Not by itself.

The previous lease is useful historical information, but today’s rent should reflect the current market and current competition.

Is asking rent the same as actual leased rent?

No.

Asking rent reflects what landlords advertise. The final amount agreed upon by the landlord and tenant may be different.

The Bottom Line

Yes, Toronto’s overall asking rents have declined.

But that does not mean every rental property is moving in the same direction.

In September:

one-bedroom rents fell;

two-bedroom rents were roughly flat;

and

three-bedroom rents increased.

That is exactly why landlords need to stop asking only:

“Is the rental market up or down?”

and start asking:

“What is happening to properties like mine?”

That answer is much more useful when deciding:

how much to ask;

whether to adjust the rent;

how long to wait;

and how to position the property against today’s competition.

Sources: Rentals.ca & Urbanation

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