“0.7% Vacancy” Is Over: The Real State of GTA Rental Vacancy
Vacancy is rising and rent growth is cooling — the tenant’s window is back
Is GTA rental vacancy still as tight as 0.7%?
Not anymore. Vacancy has clearly risen, and tenants’ choice and negotiating room are growing. According to CMHC (2025 Rental Market Report), the national purpose-built apartment vacancy rate rose to 3.1% in 2025 from 2.2% in 2024, and Toronto recovered to roughly 3% for the first time since the pandemic. The old “0.7%” squeeze is in the past.
Sources: CMHC Rental Market Report (2024, 2025).
“Toronto vacancy is only 0.7% — you can’t find a place to rent.” That was true two or three years ago and is now outdated. The rental market has turned faster than many expected. Using the latest CMHC data, here is what vacancy actually looks like now, why it changed, and how tenants and landlords should each respond.
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Where it stands: vacancy has clearly risen
Why it changed: a surge in supply
Rent: still rising, but growth has slowed sharply
The hidden truth: rent still jumps on turnover
💡 For tenants: the negotiating window is back — view several units, ask for incentives, and renew where you can. For landlords: higher vacancy means pricing closer to market and retaining good tenants; a month of vacancy can wipe out the extra you tried to hold out for.
Frequently Asked Questions
What is the GTA vacancy rate now?
According to CMHC (2025), the national purpose-built vacancy rate rose to 3.1% in 2025 and Toronto recovered to roughly 3% — the first time since the pandemic. The old “0.7%” squeeze is over.
Why has vacancy risen?
According to CMHC (2024), the main reason is a supply surge — the national purpose-built rental stock grew 4.1% in 2024, the largest one-year increase in over thirty years.
With higher vacancy, did rents fall?
They are still rising but growth slowed sharply. According to CMHC (2024), Toronto rent growth fell to 2.7% in 2024 (from 8.8% in 2023). On turnover, rent still jumps about 23.5%.
Is it better to renew or move now?
Usually renew. According to CMHC (2024), rent jumps an average of 23.5% on turnover, so staying in your unit often locks in a lower rent than moving.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · CLHMS & GUILD Elite · REAIS
VP & Branch Manager, Bay Street Group Inc.
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