Ontario Rental Market Update – March 2025 Trends & Insights
Are you keeping up with the latest Ontario rental trends? Whether you’re a landlord, investor, or tenant, understanding the shifting rental landscape can help you make smarter decisions. In this post, we break down insights from the latest Rentals.ca National Rent Report—highlighting what it means for Ontario’s rental market in March 2025.
📉 National Trends: Rents Are Dropping
Canada has experienced a notable cooling in rent prices. According to the Rentals.ca March 2025 Rent Report, average asking rents dropped for the fifth consecutive month.
- Average rent: $2,088 in February 2025
- -4.8% year-over-year drop—the sharpest since April 2021
- Still 16.9% higher than pre-pandemic (Feb 2020)
This cooling may reflect inflationary pressures, interest rate sensitivity, and increased rental availability in urban centers.
Disclaimer: Data is sourced from Rentals.ca’s March 2025 Rent Report. For educational use only.
🏠 Ontario’s Rental Market: Key Insights
Ontario played a major role in the national rent decline. Average apartment rents (both purpose-built and condo) dropped 4.2% YoY to $2,329.
Here’s a breakdown of key cities in Ontario:
| City | 1-Bedroom Avg. Rent | 2-Bedroom Avg. Rent |
|---|---|---|
| Toronto | $2,359 (-5.4%) | $3,066 (-6.7%) |
| Oakville | $2,283 (+0.7%) | $3,208 (+19.5%) |
| Mississauga | $2,228 (-2.9%) | $2,682 (-1.5%) |
| Guelph | $2,084 (+5.0%) | $2,452 (-1.0%) |
| London | $1,766 (-3.5%) | $2,181 (-1.2%) |
| Hamilton | $1,720 (-5.3%) | $2,082 (-5.4%) |
💡 Observation: Oakville stands out with a 19.5% surge in 2-bedroom rents, likely tied to tight inventory and commuter demand.
Disclaimer: Compiled from Rentals.ca February–March 2025 Data. For illustrative purposes only.
🏡 Apartments vs. Condos: What’s More Affordable?
Ontario renters saw greater relief in condo pricing:
- Condo rents: -$2,192 (-7.6%) YoY — lowest in 2+ years
- Purpose-built apartments: -$2,070 (-1.9%)
📉 Drop by Unit Type (Condos)
- Studios: $1,772 (-10.0%)
- 1-bedroom: $1,973 (-8.8%)
- 2-bedroom: $2,323 (-7.6%)
Interestingly, 3-bedroom apartments increased 3.8% to $2,688—suggesting growing demand from families.
🔮 What Does This Mean for Ontario’s Rental Market?
For Landlords and Investors:
- Reevaluate pricing strategies
- Highlight value in listings (e.g. updated appliances, included utilities)
- Invest in targeted renovations to retain tenants
- Utilize services like Blue Anchor Property Management for pricing, tenant screening, and professional leasing
For Renters:
- This is a window of opportunity to upgrade or negotiate rent
- Explore mid-size cities like Belleville, Guelph, and Hamilton where demand is leveling
Looking Ahead
While current rent drops may continue into Q2, long-term demand remains strong due to immigration, population growth, and limited housing supply.
Blue Anchor Property Management remains dedicated to helping Ontario landlords and tenants navigate this evolving landscape. For full support—from pricing to tenant placement—reach out to our team.
📍 View our contact page or explore areas we serve across Central Ontario.