Ontario renters are seeing a shift in power as Toronto landlords ramp up rental incentives to attract tenants in a softening market. With vacancy rates climbing and record numbers of new condos entering the rental pool, tenants are now being courted with offers like two months of free rent, $500 gift cards, free Wi-Fi, and complimentary parking.
According to Urbanation, 63% of Toronto buildings now offer incentives to renters- more than double the amount from last year. The trend reflects the growing competition among landlords in Toronto, the GTA, and Hamilton as a result of new condo completions and a slowdown in the buyer market.
In 2024, a record 29,000 condo units were completed in the Greater Toronto and Hamilton Area. Urbanation reports that 40% of these units have since entered the rental market, driving up supply and pressuring landlords to sweeten the deal rather than drop rent prices.
Vacancy rates for purpose-built rentals completed since 2000 in the Toronto-Hamilton corridor reached 3.5% in Q1 2025, the highest level in nearly four years. At the end of Q1, 6,549 condo units were available for lease, a 29% increase year-over-year and 160% higher than two years ago.
The data also shows that average asking rents in Ontario have dropped 2.7% from the year before, with one-bedroom and two-bedroom units in Toronto now renting for 8.4% and 10.6% less, respectively, compared to April 2024 (Zumper).
Experts say this mirrors rental dynamics last seen during the COVID-19 pandemic- tenants now have more negotiating power, more choices, and access to previously unaffordable units. While this may not last forever, it’s currently a rare moment of leverage for renters in an otherwise tough market.
Canada Housing Market 
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