In recent years, Southern Ontario’s rental market has witnessed a dramatic shift, with property managers rolling out enticing giveaways and incentives to lure potential tenants. A stark contrast to just a few years ago when renters were scrambling to secure apartments amidst soaring rental prices, today’s market offers a variety of perks, ranging from months of free rent to complimentary gym memberships and even free Wi-Fi for an entire year. But as rental prices decline, many wonder: Will these generous incentives last?
In a stark reversal from the tight rental market during the pandemic’s early years, renters today have numerous options at their disposal, especially in key Southern Ontario cities like Toronto and Mississauga. A quick search on rental platforms like Zumper.ca reveals more than 100 apartment buildings in Mississauga offering special move-in deals and over 1,500 listings in Toronto alone. These offers reflect the current state of the market and provide a glimpse into the fierce competition among landlords to fill vacant units.
Take, for instance, some of the enticing deals currently available. At 4235 Confederation Parkway in Mississauga, some apartments are offering one year of free Wi-Fi with rents ranging from $1,800 to $3,945. Similarly, Brightstone, located at 6570 Glen Erin Drive, is offering up to two months of free rent along with a $1,500 move-in bonus for apartments ranging from $2,505 to $3,530. However, these incentives typically require renters to sign a lease agreement, and not all apartments are part of these promotions.
These move-in perks are a direct response to the current market conditions, according to Giacomo Ladas, associate director of communications for Rentals.ca. “When it is a renter’s market, property managers and developers must work harder to attract tenants,” Ladas explains. “The last year has seen a record number of new rental units entering the market, which has led to more competition among landlords.”
A closer look at rental trends over the past few years reveals a fluctuating landscape. During the first wave of the COVID-19 pandemic, rents across Canada saw a significant drop, reaching an average low of around $1,700 in January 2021. However, as the economy began to recover, rent prices surged, reaching as high as $2,200 in 2024. The demand for rental properties skyrocketed, leading to long lines of eager renters and a reduced need for promotional deals.
“People were flooding to secure any available unit,” Ladas recalls. “With demand far exceeding supply, landlords no longer needed to offer incentives to attract tenants. It became a situation where renters had little choice but to accept whatever they could find.”
Fast forward to the present day, and the tide is turning again. Rental prices have started to decline, with the average rent dropping to $2,100 in January 2024, a 4.4% decrease compared to the same time the previous year. In Ontario, the average rent dropped by 5.2%, reaching $2,329. With more rental units available, landlords are finding themselves under pressure to make their properties stand out by offering attractive incentives.
Ladas notes that the incentives tend to be focused on one- and two-bedroom units, which are currently less popular in comparison to studio apartments and three-bedroom units. Studio apartments, being the most affordable option, remain in high demand, while three-bedroom units appeal to families and groups of roommates, especially those working from home who require extra space for home offices.
Despite the recent price drops, rental rates are still significantly higher than pre-pandemic levels. While it’s a relief for renters to see some relief in prices, Ladas points out that the market remains inflated. “Even though rents have come down, it’s still an inflated market compared to what it was before the pandemic,” he states.
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Looking ahead, Ladas doesn’t foresee significant changes in the rental market in the short term. “We expect these trends to continue for the foreseeable future, especially as new apartment buildings are still being completed and coming to market,” he says. However, he warns that the rental market is heavily influenced by various factors, such as supply, economic conditions, interest rates, and immigration. The ongoing high borrowing costs have led to fewer new rental developments, which in turn has limited the supply of available units.
Ladas concludes with a sobering reality: “The slowdown in construction work has restricted the supply of new rental units. Without more purpose-built rentals entering the market, these current incentives may not be sustainable in the long run.”
In short, while renters in Southern Ontario are reaping the benefits of incentives like never before, the future of these deals remains uncertain, dependent on market fluctuations and the overall supply of available rental units.
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