VANPLEX

Market & Money | Rental Market

Toronto's Rental Market, In Real Numbers

If you are holding a multiplex as rental, underwrite to current data. The latest CMHC figures put Toronto's purpose-built apartment vacancy at 3.0% in October 2025 — the highest since 2021 — yet rents rose across every bedroom type. The market loosened on availability without giving up rent. Here is what that means for a multiplex held to rent.

Key Takeaways

  • ✓Purpose-built vacancy 3.0% (Oct 2025), up from 2.2% — highest since 2021.
  • ✓Rents rose across every bedroom type year over year despite higher vacancy.
  • ✓3-bedroom+ units lead the table at $2,294 — the scarce, family-sized product a multiplex delivers.
  • ✓All-units average rent $1,917 across the Toronto CMA (Oct 2025).

Average Rents, Year Over Year

Unit type October 2024 October 2025
Bachelor $1,448 $1,491
1 bedroom $1,715 $1,761
2 bedroom $1,972 $2,045
3 bedroom + $2,185 $2,294
All units — $1,917

Toronto CMA purpose-built apartment averages from the CMHC rent table. Vacancy (2.2% Oct 2024 → 3.0% Oct 2025) from the CMHC Rental Market Reports.

What the Data Says for a Multiplex

Vacancy is loosening

CMHC reports Toronto CMA purpose-built apartment vacancy at 3.0% in October 2025, up from 2.2% a year earlier — the highest since 2021. Record new supply is loosening a market that had been very tight. Underwrite to 3.0%, not to the sub-2% of recent years.

Family-sized rents are highest

Three-bedroom-plus units lead the CMHC table at $2,294, ahead of $2,045 for a 2-bedroom. A ground-oriented multiplex can deliver the larger, family-sized units that purpose-built towers rarely build — the part of the rent table with the highest dollar figures.

Rents kept climbing as vacancy rose

Even with vacancy up, every bedroom type rose year over year: the 2-bedroom average went from $1,972 to $2,045. The market loosened on availability without giving up rent levels, which matters for a long-term rental hold.

Best For

  • ✓ Multiplexes with larger, family-sized units that match the highest-rent part of the CMHC table.
  • ✓ Rental holds underwritten to the current 3.0% purpose-built vacancy, not the tighter figures of recent years.
  • ✓ Ground-oriented forms competing on a product purpose-built towers rarely supply.

Usually Fails When

  • ✕ A pro forma assumes sub-2% vacancy and the rents that came with it.
  • ✕ Unit mix skews to bachelors in a market where family-sized supply is the gap.
  • ✕ Rent assumptions are not refreshed against the latest CMHC release.

What To Verify Before Spending Money

  • → The current CMHC vacancy and rent figures for the Toronto CMA.
  • → How your unit mix maps to the bedroom-type rent premiums.
  • → Whether you are competing with purpose-built or the rented-condo segment.

Where to Go Next

Condo vs Multiplex Rental
The secondary market your multiplex competes with.
285,000-Home Target
The demand backdrop behind the supply.
Financing
How a rental multiplex gets funded.

Frequently Asked Questions

What is the rental vacancy rate in Toronto? +
CMHC reports the Toronto CMA purpose-built apartment vacancy rate at 3.0% in October 2025, up from 2.2% in October 2024 — the highest since 2021. Record new supply loosened the market. For a multiplex held as rental, that means underwriting to roughly 3% vacancy rather than the tighter figures of recent years.
What are average rents in Toronto? +
For the Toronto CMA in October 2025, CMHC reports average purpose-built rents of $1,491 (bachelor), $1,761 (1-bedroom), $2,045 (2-bedroom), and $2,294 (3-bedroom-plus), with an all-units average of $1,917. A year earlier (October 2024) the figures were $1,448, $1,715, $1,972, and $2,185 — every type rose.
Does a higher vacancy rate make Toronto a bad rental hold? +
It means underwrite to current data. A 3.0% purpose-built vacancy is moderate, not a glut, and rents rose across every bedroom type even as vacancy climbed. Family-sized and ground-oriented rentals — what a multiplex can deliver — remain the scarcest product. The case rests on unit type and location, not on assuming the tightest possible market.
Why do family-sized units matter for a multiplex pro forma? +
Three-bedroom-plus units command the highest rents in the CMHC table ($2,294 versus $2,045 for a 2-bedroom in October 2025), and they are the units purpose-built apartment towers rarely build. A ground-oriented multiplex can deliver larger units, lining up the form with the highest-rent, scarcest part of the market.
Should I underwrite to condo rents or purpose-built rents? +
Most multiplex units are a different product from a rented condo — ground-oriented, often larger, no shared building. Purpose-built CMHC figures are the conservative benchmark for underwriting. Toronto's rented-condo segment runs higher and tighter; the condo-versus-multiplex page covers why that secondary market behaves differently.

Official Sources Referenced

CMHC — Rental Market Reports (Major Centres)
https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/market-reports/rental-market-reports-major-centres
CMHC — Toronto average rents by bedroom type (data table)
https://www03.cmhc-schl.gc.ca/hmip-pimh/en/TableMapChart/Table?TableId=2.2.11&GeographyId=2270&GeographyTypeId=3&DisplayAs=Table&GeograghyName=Toronto
Statistics Canada — City of Toronto Census Profile (2021)
https://www12.statcan.gc.ca/census-recensement/2021/as-sa/fogs-spg/page.cfm?lang=E&topic=1&dguid=2021A00053520005
City of Toronto — 285,000 new homes by 2031 pledge
https://www.toronto.ca/news/toronto-city-council-approves-housing-pledge-to-facilitate-285000-new-homes-by-2031/

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