Ontario’s rental market continues to experience significant changes, with two-bedroom apartments seeing notable rent increases across the province. Understanding current rental costs is crucial for both tenants and landlords navigating today’s competitive housing market.
Ontario’s rental market continues to experience significant changes, with two-bedroom apartments seeing notable rent increases across the province. Understanding current rental costs is crucial for both tenants and landlords navigating today’s competitive housing market.
| Geography | Turnover Units – Average Rent in Oct 2023 | Turnover Units – Average Rent in Oct 2024 | Non-turnover Units – Average Rent in Oct 2023 | Non-turnover Units – Average Rent in Oct 2024 |
|---|---|---|---|---|
| Ontario 10,000+ | 1,983 | 2,107 | 1,625 | 1,700 |
| Barrie | 1,955 | 2,004 | 1,579 | 1,618 |
| Belleville – Quinte West | 1,691 | 1,806 | 1,257 | 1,389 |
| Brantford | 1,841 | 1,886 | 1,359 | 1,383 |
| Guelph | 2,181 | 2,291 | 1,563 | 1,680 |
| Hamilton | 2,058 | 2,175 | 1,540 | 1,575 |
| Kingston | 1,824 | 1,930 | 1,553 | 1,631 |
| Kitchener-Cambridge-Waterloo | 1,927 | 2,137 | 1,572 | 1,666 |
| London | 1,820 | 1,920 | 1,417 | 1,483 |
| St. Catharines-Niagara | 1,703 | 1,819 | 1,343 | 1,420 |
| Oshawa | 1,777 | 2,037 | 1,582 | 1,637 |
| Ottawa-Gatineau (Ont. part) | 1,903 | 2,118 | 1,643 | 1,779 |
| Peterborough | 1,791 | 1,803 | 1,369 | 1,469 |
| Greater Sudbury/Grand Sudbury | 1,647 | 1,586 | 1,350 | 1,441 |
| Thunder Bay | 1,372 | 1,498 | 1,314 | 1,425 |
| Toronto | 2,405 | 2,612 | 1,868 | 1,918 |
| Windsor | 1,570 | 1,647 | 1,198 | 1,284 |
Understanding Turnover vs. Non-Turnover Units
Before diving into the rental data, it’s essential to understand the distinction between turnover and non-turnover units, as this significantly impacts rental pricing across Ontario.
Turnover Units
Turnover units are apartments that have become vacant and are being rented to new tenants. These units represent the current market rate for rentals, as landlords can set rents at market value when signing new leases. Key characteristics include:
- Recently vacated apartments with new tenant applications
- Rents set at current market rates without rent control restrictions
- Reflect true market demand and supply conditions
- Typically higher than non-turnover units due to market pricing freedom
Non-Turnover Units
Non-turnover units are apartments with existing tenancies where the same tenant continues to occupy the unit. These rentals are subject to Ontario’s rent control guidelines, which limit annual rent increases. Key features include:
- Occupied by the same tenant from the previous year
- Subject to Ontario’s rent increase guidelines (typically 2-3% annually)
- Protected from significant rent hikes through provincial legislation
- Often significantly below current market rates
Why This Distinction Matters
The gap between turnover and non-turnover rents illustrates the impact of Ontario’s rent control system. This difference, often called the “rent gap,” shows how much rents have increased in the broader market while existing tenants remain protected from dramatic increases.
Current Two-Bedroom Rent Averages in Ontario
As of October 2024, the average rent for two-bedroom apartments in Ontario varies significantly by location and unit type. Turnover units command higher rents than non-turnover units, reflecting the province’s rent control policies and current market conditions. The average rent in Toronto is $2,612, whereas areas outside the GTA tend to have a lower average rent.
Provincial Overview
Across Ontario, two-bedroom apartment rents averaged $2,107 for turnover units and $1,700 for non-turnover units in October 2024. This represents a year-over-year increase of 6.3% for turnover units and 4.6% for non-turnover units compared to October 2023.
Most Expensive Two-Bedroom Rental Markets in Ontario
Toronto Average Rent
Toronto continues to lead Ontario’s rental market with the highest two-bedroom rents:
- Turnover units: $2,612 (October 2024)
- Non-turnover units: $1,918 (October 2024)
- Annual increase: 8.6% for turnover units, 2.7% for non-turnover units
Guelph Average Rent
Guelph ranks second for two-bedroom rental costs:
- Turnover units: $2,291 (October 2024)
- Non-turnover units: $1,680 (October 2024)
- Annual increase: 5.0% for turnover units, 7.5% for non-turnover units
Hamilton Average Rent
Hamilton rounds out the top three most expensive markets:
- Turnover units: $2,175 (October 2024)
- Non-turnover units: $1,575 (October 2024)
- Annual increase: 5.7% for turnover units, 2.3% for non-turnover units
Most Affordable Two-Bedroom Rental Markets
Thunder Bay Average Rent
Thunder Bay offers the most affordable two-bedroom rentals in Ontario:
- Turnover units: $1,498 (October 2024)
- Non-turnover units: $1,425 (October 2024)
- Annual increase: 9.2% for turnover units, 8.4% for non-turnover units
Greater Sudbury Average Rent
Sudbury provides competitive rental rates:
- Turnover units: $1,586 (October 2024)
- Non-turnover units: $1,441 (October 2024)
- Annual change: -3.7% for turnover units (one of few markets with declining rents), 6.7% increase for non-turnover units
Windsor Average Rent
Windsor maintains relatively affordable rental costs:
- Turnover units: $1,647 (October 2024)
- Non-turnover units: $1,284 (October 2024)
- Annual increase: 4.9% for turnover units, 7.2% for non-turnover units
Mid-Range Rental Markets
Several Ontario markets fall into the middle price range for two-bedroom apartments:
- Ottawa-Gatineau (Ontario): $2,118 turnover, $1,779 non-turnover
- Kitchener-Cambridge-Waterloo: $2,137 turnover, $1,666 non-turnover
- Oshawa: $2,037 turnover, $1,637 non-turnover
- Barrie: $2,004 turnover, $1,618 non-turnover
- Kingston: $1,930 turnover, $1,631 non-turnover
Key Rental Market Trends
Rent Control Impact
The significant gap between turnover and non-turnover unit rents highlights Ontario’s rent control system’s impact. Turnover units average $407 more than non-turnover units provincially, representing a 24% premium for newly available apartments.
Regional Variations
Two-bedroom rent varies dramatically across Ontario, with a $1,114 difference between the most expensive (Toronto) and least expensive (Thunder Bay) turnover units. This reflects local economic conditions, employment opportunities, and housing supply constraints.
Year-Over-Year Growth
Most markets experienced rent increases for both unit types, with turnover units generally seeing higher percentage increases. Notable exceptions include Greater Sudbury, where turnover unit rents decreased by 3.7%.
Factors Affecting Two-Bedroom Rent Prices
Location and Proximity
Urban centers and areas with strong employment markets command higher rents. Toronto’s status as Canada’s financial center drives premium pricing, while smaller cities offer more affordable options.
Housing Supply
Markets with limited housing supply relative to demand experience higher rent growth. New construction and development policies significantly impact local rental costs.
Economic Conditions
Local employment rates, average incomes, and economic diversity influence rental market dynamics. Cities with diverse economies typically maintain more stable rental markets.
Outlook for Ontario’s Two-Bedroom Rental Market
The rental market continues evolving as Ontario addresses housing supply challenges. Provincial and municipal policies aimed at increasing housing supply may help moderate rent growth in the coming years.
For Tenants
Current market conditions favor early lease renewals and long-term tenancy planning. Exploring markets outside major urban centers can provide significant cost savings.
For Landlords
Strong demand for two-bedroom units continues across most Ontario markets, with turnover units commanding premium rents reflecting current market conditions.
Conclusion
Ontario’s two-bedroom rental market reflects broader housing affordability challenges, with significant regional variations offering both opportunities and challenges for renters and property owners. Understanding these market dynamics is essential for making informed housing decisions in Ontario’s evolving rental landscape.
Whether you’re searching for an affordable two-bedroom apartment in Thunder Bay or evaluating Toronto’s premium rental market, current data shows the importance of location, timing, and market knowledge in navigating Ontario’s rental market successfully.
Data Source
| Source Name: | CMHC, Rental Market Survey |
| Source Link: | https://www.cmhc-schl.gc.ca/ |
| Release Date: | December 17, 2024 |
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