The Toronto condo rental market remains one of the most dynamic segments of Canada’s real estate landscape. Changing economic conditions, shifting tenant preferences, and the rise of furnished rentals are reshaping this market. 

Market Trends

The Toronto Regional Real Estate Board (TRREB) highlights growing opportunities in the GTA condominium market during Q3 2024, with conditions favouring future growth. The average condominium price in the Greater Toronto Area was $692,672, with the average price for a condo within the city of Toronto standing at $713,801. The TRREB report also indicates that the average rent for a one-bedroom condo in Toronto is now approximately $2,500 per month, while two-bedroom units average approximately $3,200. 

Investor Trends Driving Toronto Condo Development

Toronto’s condo market is shaped significantly by investor activity, influencing both unit design and rental offerings. In 2022, investors owned nearly 39% of condos in the Toronto Census Metropolitan Area, driving pre-construction sales. Developers cater to investor demand by focusing on smaller, high-yield units, with new condos averaging just 640 square feet—an attractive option for tenants seeking affordability.

For landlords, these trends present opportunities and challenges. Smaller units are easier to rent, especially to young professionals and students, but may require creative furnishing and space optimization. The growing demand for furnished rentals offers higher rental income potential, although there are related, additional responsibilities that come with offering this.

The Growth of Furnished Rentals

Furnished rentals have emerged as a key segment in Toronto’s condo market, driven by demand from corporate clients, new immigrants, and short-term tenants. Furnished units tend to perform better than unfurnished ones, especially in certain areas. 

They cater to a niche demographic, professionals on temporary work assignments or relocating, international students, corporate clients, and others who value flexibility and move-in-ready options. For landlords, offering furnished units represents an opportunity to charge a premium, though this comes with higher upfront costs for furniture, appliances, and regular upkeep.

The Role of Property Management

Property management is playing a crucial role in Toronto’s rental market, particularly as competition among landlords intensifies. Landlords are increasingly relying on professional property managers to ensure their units remain in demand. Key responsibilities include marketing listings effectively, handling tenant inquiries, and ensuring units are kept in top condition. With increasing tenant expectations, professional property management services can significantly help maintain profitability.

Moreover, legal compliance is becoming more complex, especially with Toronto’s evolving rental regulations. Property managers help landlords navigate these rules, ensuring compliance with municipal by-laws around tenant rights, safety standards, and rent control. 

Emerging Trends in Amenities

Tenant preferences have shifted noticeably in recent years, with a stronger focus on sustainability and lifestyle amenities. Renters are now prioritizing condos with green building certifications, energy-efficient appliances, and ample natural lighting. 

The growing popularity of remote and hybrid work arrangements has increased demand for units with dedicated home office spaces or access to shared co-working areas within condo complexes. To compete, some landlords are making strategic upgrades, such as retrofitting older units with modern finishes or investing in smart home technologies that appeal to tech-savvy tenants.

Additionally, outdoor amenities, such as balconies, terraces, and rooftop gardens are in high demand. 

Challenges in Toronto’s Condo Rental Market

Despite the opportunities, challenges persist. One of the primary issues is vacancy rates, which, while low by historical standards, have edged up in 2024. Landlords need to find ways to differentiate their units. Catering to niche markets, such as corporate or film industry clients can help ensure consistent rentals. Partnering with property management companies with contacts in these areas provides a further advantage.

Neighbourhood Trends and Insights

Downtown Toronto remains the priciest and most sought-after area for condo rentals, particularly among professionals in finance and tech. High-end condos in the Financial District and King West cater to executives and international business travellers, with furnished units consistently in demand.

Yorkville and Rosedale attract those seeking luxury living near upscale shopping and dining. These neighbourhoods are especially popular for boutique, fully furnished condos with premium amenities, targetting affluent professionals and corporate assignments.

Midtown Toronto, including Yonge and Eglinton, appeals to young professionals and families valuing transit access and vibrant retail hubs. Furnished units in newer developments here are favoured for their modern finishes and convenience.

In the west, Etobicoke offers budget-friendly options for families and newcomers, while areas like Mimico and Humber Bay Shores attract professionals with upscale, waterfront-furnished condos that balance city living with suburban tranquillity.

In the east, The Beaches appeals to those seeking a relaxed waterfront lifestyle, with a growing demand for upmarket furnished rentals among professionals and retirees. Scarborough and Leslieville, meanwhile, remain attractive for affordability and amenities, with rising interest in furnished units among international students and newcomers relocating for work or study.

Toronto’s condo rental market thrives on furnished options in high-demand areas, where exclusivity, convenience, and lifestyle amenities drive tenant interest, creating prime opportunities for landlords and investors alike.

Looking Forward

Toronto’s condo rental market in 2024 reflects a city in transition. With evolving tenant preferences, landlords must adapt their strategies to remain competitive. Furnished rentals present unique opportunities, but they also require careful management and planning. For property owners and investors, staying informed about market trends and tenant needs will be key to navigating the complexities of Toronto’s rental landscape in the coming year.

For those seeking professional support for a competitive advantage, Marco Property Management offers comprehensive property management services tailored to the Toronto market. These include assistance with marketing and tenant relations, expert interior design consultations to optimize space and appeal, and access to a network of business and film industry clients, ensuring your rental is consistently in demand. Marco also provides specialized furnishing services, enabling landlords to offer attractive, move-in-ready units without any hassle.