Many Toronto-area rental units are sitting empty, but rent prices are still 'sky high': advocate

Rental vacancies in the Greater Toronto and Hamilton Area reached a five-year high in early 2026, signalling a shift toward a renter’s market. Urbanation reported a 5.4 per cent vacancy rate in newer rent-stabilized buildings, up from 3.6 per cent in 2025. The increase is linked to slower population growth, weaker economic conditions and a larger supply of rental units. Landlords are responding with incentives such as free rent and move-in bonuses, reducing effective rents by an average of about $400 per month. However, tenant advocates say Toronto rents remain unaffordable, with one-bedroom units often costing between $2,000 and $2,500. Despite softer demand, purpose-built rental construction continues to grow, with more than 10,000 units started over the past 12 months.