After years of relentless increases, Toronto renters are finally getting a breather.

According to the latest February 2026 report from Rentals.ca, average asking rents in Toronto have fallen to their lowest levels in nearly four years. Across Canada, rents declined for the 16th consecutive month, bringing the national average down 2% year-over-year to $2,057 — a 31-month low.

Here in Ontario, the drop has been even more noticeable. The province saw rents fall 3.3% annually, with Toronto posting some of the biggest declines.

What’s Happening in Toronto?

The average rent across all unit types in Toronto now sits at $2,504.

• One-bedroom apartments: $2,183

  • Down 1.1% month-over-month

  • Down 7.2% year-over-year

• Two-bedroom apartments: $2,801

  • Slight 0.1% monthly increase

  • Still down 8.6% annually

Toronto’s overall apartment rents are down 4.6%, marking a 44-month low.

Bigger Picture

Ontario recorded the largest two-year rent decline in the country — down 8.3%. Interestingly, renters are shifting toward smaller spaces. Average unit sizes dropped to 857 sq. ft., while rent per square foot actually increased 1.4%.

Nationally, affordability is improving too. Canada’s rent-to-income ratio has fallen to 29.5%, its lowest level in six years.

For Toronto renters, it’s not exactly “cheap” — but for the first time in a while, the market is moving in their favor.