The housing market may finally be looking up for students renting accommodation in Toronto. After reaching a record high of $2,925 in 2023, the average monthly rent for a condo in Toronto is now $2,612, marking a decrease of 10 per cent.
In recent years, the Canadian housing market has been struggling with an imbalance between the supply and demand of housing; in 2023, only 1.5 per cent of purpose-built rental apartments were vacant, the lowest figure recorded since tracking began in 1988. This scarcity caused a surge in rent prices.
However, apartment rental costs have been cooling for over a year now. In fact, landlords have even been offering a month of free rent to attract tenants. Why has renting become more affordable?
Increasing supply is resulting in lower rent
Rental prices have decreased simply because there are more units to rent.
In the first three months of 2025, developers in the Greater Toronto and Hamilton Area (GTHA) finished 2,136 new purpose-built rental homes. These are units in apartment buildings constructed with the intention of renting out the individual units rather than selling them to landlords. The number of new purpose-built rental developments has increased from last year by 173 per cent and represents the second-highest quarterly total in 30 years.
Add a flood of newly completed condos, and listings piled up fast — 6,549 GTHA condos were available to lease in March, 29 per cent more than a year ago and 160 per cent more than two years ago.
Experts also theorize that other factors might be in play. There may be less housing demand from international students due to the cap on the number of new international study permits issued. Furthermore, according to Matisse Yiu, marketing manager of Liv Rent, many renters decided to live with their family or find roommates to save on housing costs, freeing up more units.
For renters, especially students, that extra housing supply has brought a rare kind of relief: slightly lower prices and more negotiating power.
Four strategies, four voices
In an interview with The Varsity, four University of Toronto students show how the numbers translate into real-world housing choices.
“I am currently renting a two-bedroom, two-bathroom unit near the TMU campus, paying approximately $3,600 per month,” wrote graduating student Yasmine Elaimani, who studied health & disease, biology, and immunology. Elaimani shares this apartment with a roommate.
She scoured dozens of listings before settling, “Finding an affordable place significantly limited the available options… Ultimately, I prioritized finding a balance between cost, space, and convenience.” She’s seen rent soften but doubts any landlord will voluntarily match the new market.
For many, job-market uncertainty and landlords demanding many months of rent up-front make leasing tricky. Survival relies on splitting costs. Wannit Phlaphongphanich, a recent U of T graduate with majors in political science and work and organizations, wrote, “Throughout university, I had a roommate [to split rent with]… [but now] living [by myself] in a one-bedroom eats a large chunk of [my] salary. The suggested range of rent being 30 percent of one’s monthly income flies out of the window in the current market.”
Not everyone fights for a downtown lease. Rotman Commerce student Karthik Rajaraman, who will be graduating with a specialisation in management, moved back in with his parents when they immigrated from Singapore in 2024. “Affordability wasn’t actually one of the main reasons [for moving back in]… since I live only 20 to 30 minutes from downtown Toronto, I still have more than enough time to interact and go out with friends.”
His old roommate paid over $1,200 for a single room; now, Rajaraman’s cost is simply a 30-minute commute. He’ll reassess only if his parents leave the city. Until then, living at home keeps his budget intact.
Third-year Rotman Commerce student Shawn Poncha, specializing in management, decided to stick with campus housing. “I save on transportation costs, furniture… and I avoid the commitment of a 12-month lease by only renting during the academic term,” he explains.
For Poncha, community sealed the deal: “Living on campus keeps me connected to student life… the flexibility and stability of on-campus housing have been major benefits,” he wrote. An attempted move off-campus in the second year fell through; after that, he decided residence was the smarter financial play.
Looking ahead
Unfortunately, the relief from soaring rents may be short-lived. The number of new apartment buildings that officially began construction plunged 60 per cent in early 2025 compared to last year, which means today’s surge could turn into tomorrow’s drought if builders stay on pause.
For Elaimani, Phlaphongphanich, Rajaraman, and Poncha, that means another cycle of roommate math, commuter passes, or residence renewals. For now, renting remains not just the most affordable path, but the only realistic one. Until affordability improves in a real way, students will keep adapting, stretching every dollar and rethinking what home means — one lease at a time.
