Rental prices in Toronto are still dropping, but this trend may reverse in the near future

In 2023, rental demand in Toronto significantly exceeded supply, leading to high competition for affordable units, particularly affecting lower-income renters. However, the latest Canadian National Report by rental platform Zumper suggests potential relief in 2024 due to declining rents and upcoming construction projects, coupled with decreasing interest rates. Despite Toronto maintaining its position as the second most expensive city, average rents for one-bedroom and two-bedroom units decreased by 2% and 0.9% respectively. This contrasts with the national trend of rental price growth decelerating over the past five months, with a year-over-year increase of 7.9%. Additionally, Kingston emerged as one of the fastest-growing rental markets in the province, ranking 11th priciest with a 5.8% increase in monthly one-bedroom rents.