Why Toronto’s Rent Prices Are a Rollercoaster: 15 Years of Surprises

March 11, 2025

Fifteen years ago, renting in Toronto was affordable by today’s standards. In 2010, you could rent a one-bedroom for $1,200—and if you were feeling fancy, a condo for $1,500. Fast forward to today, and that same unit will cost you $2,500+, with prices having skyrocketed, crashed, and soared again.

So, what happened? How did we get from reasonable rents to bidding wars for apartments? And why does it feel like Toronto’s rental market is always on a wild ride?

Let’s rewind and break it down.

For most of the early 2010s, Toronto’s rental market was predictable. Rents increased slowly, hovering around a few percentage points per year. Vacancy rates were low, but the market was steady.

However, this was also the era of skyrocketing home prices. As real estate values soared, more and more would-be homebuyers became long-term renters, putting pressure on the rental supply. Even then, a one-bedroom still cost under $1,500/month, and renting felt reasonable compared to owning.

But then, everything changed.

By 2015, short-term rentals like Airbnb exploded in Toronto, and suddenly, condos that would’ve been leased to long-term renters were being converted into mini hotels.

At the same time, Ontario’s tenancy laws were strict, making Airbnb seem more profitable and less risky for many landlords. This drained thousands of rental units from the market, leading to skyrocketing rent prices.

Rent shock: By 2017, the average rent for a one-bedroom jumped to $1,800-$2,000—a 20-30% increase in just two years.

The Ontario government stepped in. Premier Kathleen Wynne introduced rent control for all buildings in 2017, including condos. While this helped some tenants, it pushed many landlords and developers away from long-term rentals.

By 2018, rent prices were still climbing, and Ontario’s new government under Doug Ford took a completely different approach:

Newly built rental units would be exempt from rent control.

The goal? To encourage more developers to build rental apartments. And while it did lead to more rental supply in the long run, it also meant that new units had no rent caps, leaving tenants vulnerable to major hikes.

Meanwhile, home prices were still rising, pushing even more people into the rental market.

When COVID-19 hit in early 2020, the impossible happened: Toronto’s rent prices plummeted.

People fled the downtown core. ️ Immigration came to a halt. Airbnb landlords dumped units back into the market.

By early 2021, one-bedroom condo rents had dropped to $1,800—the first major price drop in over a decade. For the first time in years, renters had bargaining power.

But this renter’s market didn’t last long…

As lockdowns lifted, Toronto’s population exploded again:

Immigration surged—Canada welcomed over 1 million new people in 2022 alone, with many settling in Toronto. Students returned—campuses reopened, creating a surge in rental demand. ️ Downtown rebounded—suddenly, condos were in high demand again.

With this massive demand and not enough rental supply, rent prices skyrocketed to record highs.

By mid-2023, one-bedroom apartments hit $2,500+, the highest on record.

Once again, landlords had full control.

Right now, we’re seeing the first signs of rental prices stabilizing.

️ More supply—New rental and condo buildings are hitting the market. ️ Economic uncertainty—A slowing economy is keeping rent hikes in check. ️ Fewer new immigrants—Canada is adjusting immigration policies to ease housing pressures.

For the first time in years, some renters are seeing small rent decreases. But affordability is still a major challenge.

With homeownership feeling impossible for many, renting has become a long-term choice.

And while renting comes with flexibility and lower upfront costs, there are downsides:

Rent uncertainty—Without rent control on new units, prices can increase at any time. No equity building—Unlike homeowners, renters don’t benefit from real estate appreciation. Risk of eviction—Landlords can sell or move in, forcing tenants to relocate.

At the same time, renting is often seen as a safer bet in an expensive market—no massive mortgage, no maintenance costs, and the ability to move when needed.

Toronto’s rental market has been on a rollercoaster for 15 years, and while 2024–2025 looks more stable, the long-term future is uncertain.

Will more supply bring rents down? Will government policies shift again? Will affordability ever improve?

One thing is certain: Toronto’s rental market is never boring.

What do you think? Have you noticed the changes in rent prices over the years? Let me know in the comments!

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