Renting a condo in Toronto has become more affordable and attractive to newcomers. Lower asking prices and increased rental condos on the market have given renters more bargaining power with landlords. Understanding Toronto’s changing condo market can help newcomers find their first rental home in Canada.
For newcomers, it’s a good time to rent or buy a condo in Toronto. And the market will offer many attractive options in 2025. The market is in flux due to an oversupply of condos amid falling sales and rental asking prices. Toronto and Vancouver are by far the largest condo markets in Canada.
In Toronto, condo sales have slowed dramatically in 2024, descending into a situation described as “bleak.”
Toronto Condo Market Sales Slow
According to recent data from Altus Group and BILD GTA, only 210 new condos were sold across the Greater Toronto Area (GTA) in October. That’s down 84% from the same time last year. The drop reveals how activity in Toronto’s condo market has slowed and why rent asking prices have fallen.
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There are approximately 40,000 units of condo supply in the GTA. This consists of unsold condos in development, assignment listings, or condo resale listings. Toronto condo market forecasts suggest there may be more affordable opportunities for newcomers looking to rent or buy a condo.
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Across Canada, condo rent prices are falling for all unit types except for popular three-bedroom units. Nationally, two-bedroom condo rents saw the largest annual decline. This national trend in condo asking rents matches what’s happening in Toronto.
The Pros and Cons of Condo Living for Newcomers
Whether renting or buying, living in a condo in Toronto offers newcomers advantages and disadvantages:
| PROS | CONS |
|---|---|
| Less maintenance and repairs | No control over maintenance & repair schedules |
| On-site amenities, such as a sauna, swimming pool, gym | Paying for amenities you don’t use |
| Enhanced security features | Less privacy and possibly more noise |
| Predictable monthly maintenance or condo for owners | Special assessment charges for unexpected repairs |
| Condo boards elected by and answerable to owners. | Some condominium units are small |
| A community lifestyle with social, entertainment, and recreation | Condo board rules on noise levels, parking, pets, smoking and decorating |
| Possibility of renting out the unit as an Airbnb rental | Disruptions caused by Airbnb rentals |
Some of these pros and cons affect owners only and not renters. If you rent, your landlord will explain the condo rules and regulations before you sign the lease.
Condo Rental Market for Newcomers
According to third-quarter data from the Toronto Region Real Estate Board (TRREB), strong population growth in the GTA has boosted condo rentals.
In addition to population growth, there has been a significant growth in the number of condos for rent in Toronto. This offers newcomers looking to rent in the Toronto condo market greater choice and lower rental costs.
“Many newcomers to the GTA initially choose to rent a home,” said TRREB President Jennifer Pearce.
“Given the record pace of immigration, it is no surprise that the number of (condo) rental transactions continues to trend upwards,” said Pearce. “In recent months, these renters are benefitting from much more negotiating power, due to an increase in listing supply. This has resulted in a more affordable (condo) rental market.”
Toronto Condo Market Rents Continue to Fall
The average rent for all types of rentals in Toronto in November was down 9.4% year-over-year to $2,640.
| CONDO TYPE | RENTAL PRICES (NOV 2024) |
|---|---|
| 1-bedroom Condo | $2,385 (down 8.3% from 2023) |
| 2-bedroom Condo | $3,115 (down 10.2% from 2023) |
| 3-bedroom Condo | $3,7109 (down 6.2% from 2023) |
Buying a Condo in Toronto: Market Conditions
A condo can be a good entry-level home for newcomers looking to buy in the Toronto market.
With many condos on the market and at lower prices, would-be buyers have been renting and saving money. They’ve been waiting for interest rate cuts and condo prices to fall. Toronto condo buyers have been waiting for the Bank of Canada to lower its key interest rate below 3.5%. In December, the Bank lowered the rate to 3.25% from 3.75%.
Buyers have also been waiting for desirable two- and three-bedroom condos in prime downtown locations to come on the market.
When buying a condo, it’s smart to consider the size. The hottest-selling condos are two and three-bedroom units of 800 square feet or larger. However, the reality is that most units are 600 square feet or less (studios, one-bedroom, one-and-a-half bedrooms).
Toronto Prices to Remain Stable
In Toronto, the average selling price of a condo (all sizes) in October was $650,000, down 0.7% from September. Overall, the price has fallen 6.1% since October 2023.
The average selling price for all property types in the GTA has fallen 15% since the peak in February 2022. Housing and condo prices in the GTA are expected to remain stable or rise slowly come spring, depending on interest rates.
Toronto’s condo market is becoming more attractive for newcomers. But for now, there appears to be no rush to buy one. As Toronto real estate agent Grace Chan told The Toronto Star, “Interest rates need to be lower, and the (condo) inventory needs to be more enticing,”
Sources:
CMHC, TTREB, Rentals.ca,
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
