Rent is going down while vacancy is way up across the GTHA

Vacancy rates for GTHA rentals are now the highest they’ve been since pandemic, according to a new study from Urbanation, which found that 5.4 per cent of the region’s units now sit empty, up from last year’s 3.6 per cent. Urbanation reports that lower immigration and decreasing rents—which enable more tenant turnover—are the principle causes of the shift. This year’s first quarter also saw availability rates (a stat that combines vacant units with units where tenants have given notice to leave) reach a historic high of eight per cent.

Related: Developers have started slashing the prices of new condo units

“Rental operators are grappling with a deluge of supply at the moment due to intense competition from the condo market and a surge in tenants moving to get a better deal,” Urbanation president Shaun Hildebrand said in a statement. “Supply pressures will persist this year as apartment completions run high and population growth slows, creating a window of opportunity for renters to capitalize on improved affordability.”

More supply is in the pipeline, with 3,674 units starting construction so far this year, up 12 per cent from the same period in 2025. A record high of 8,984 units are expected to be delivered over the next year.

Related: First-time homebuyers have returned to the market—with a little help from their parents

Landlords and property managers are now offering sweeteners to get would-be renters on-board. The report found that 66 per cent offer an incentive, with 47 per cent offering two months of free rent. Only a third of rental operators offered such a discount a year ago.

Rents in the GTHA have also come down 3.8 per cent annually, to an average of $3.52 per square foot, a four-year low.