David Babakaiff
Written by David Babakaiff — Co-Founder, VanPlex | 25+ Years BC Construction

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).

Rents vary by CMHC survey zone, not by city average. Get the rents for the zone your address falls in , with the survey date shown.

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

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

General information, not legal advice. Zoning and permitting rules are set by each municipality and change over time. Verify current requirements directly with the municipal Planning Department before making a decision.

Related reading

Longer pieces on the same question.

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