When there are more places to rent than people looking to rent, it takes landlords longer to fill their units. Some owners are now offering incentives such as a free month of rent or flexible terms to attract tenants.

This also affects the ownership market. Landlords who are tired of carrying empty units or paying high mortgage costs on rental properties may decide to sell. 

That can create new listings for buyers and sometimes lead to motivated sellers who are more open to reasonable offers.

Many investors have decided to pause or reduce their activity in the GTA housing market. Higher interest rates and lower rent growth have made it harder to achieve the same returns they were used to.

When investors step back, competition eases for everyone else. Buyers who plan to live in their homes often find fewer bidding wars and more opportunities to purchase without overpaying. This can create a calmer, more balanced market.

Higher interest rates have made mortgage payments more expensive for many property owners. On top of that, maintenance costs, insurance, and property taxes have also risen. For landlords with tight budgets, keeping a rental property profitable has become difficult.

Some owners will choose to sell rather than continue to absorb those costs. For buyers, this can lead to new opportunities, as properties that once served as rentals may now be available for purchase. These sellers are often realistic about pricing and willing to negotiate to move forward.

After years of rising prices across every part of life, many renters are finding their budgets stretched thin. Their wages have not kept up with the cost of living, and that limits how much they can afford to pay each month.

When renters pull back, demand for rentals slows down, which helps explain why rents are falling. For buyers, this type of slowdown often creates a window of opportunity before the market resets. It gives you more time to plan, compare options, and make a confident decision instead of rushing.

The way people think about where they live is changing. More remote work, new transit routes, and lifestyle shifts are encouraging people to explore communities outside the traditional city core. This movement has changed demand patterns and created new areas of opportunity.

For buyers, this means you can find good value in neighbourhoods that might not have been on your radar before. As more people start to notice these areas, prices and demand can rise again. Getting in early can make a big difference.

Recent changes in government policy, property taxes, and development costs are making it harder for some landlords to keep rental properties long term. Others are finding it less attractive to buy new ones.

This is gradually increasing the number of properties being listed for sale. Buyers can benefit from this because it means more available inventory and possibly less upward pressure on prices.

The details vary by city, but the trend is clear. Mississauga has seen the average two-bedroom rent drop by about 8% over the past year. In Toronto, one-bedroom rents are down around 5%, and two-bedroom rents are down roughly 7%. 

Other communities, such as Oakville, Burlington, Brampton, Ajax, and East York, are seeing similar changes.

These shifts are significant, but they are not the same everywhere. Some neighbourhoods remain strong, while others are softening. This is why it is important to look closely at local data and lean on the guidance of an experienced real estate team that understands the area.

If you are thinking about buying, this is a good time to study the numbers and make a plan. Compare what you are paying in rent to what ownership might look like over the next few years. Talk with your mortgage specialist and get preapproved, so you are ready to act when you find the right home.

You can also look for listings that were previously rental properties, as their owners may be more motivated to sell. Do not be afraid to ask for concessions, such as help with closing costs, repair credits, or flexible timing. When the market slows, buyers have more room to negotiate.

And most of all, be patient but prepared. The best deals tend to appear when you are ready for them.

Falling rents might sound like a reason to wait, but in reality, they can signal a healthy moment of adjustment in the housing market. When conditions change, opportunity often follows. 

Buyers who take the time to understand what is happening, get clear on their goals, and seek good advice can position themselves well for the years ahead.

At RE/MAX Team Paliwal, we make it our mission to guide clients through these kinds of changes. Whether you are renting and curious about your next step, or ready to buy your first home or thinking to upgrade, we are here to help you make an informed and confident decision. We can create a rent-versus-buy comparison for your neighbourhood and walk you through what makes the most sense for you.

We are just a phone call or message away, and we will be happy to help you explore your options!

Toronto’s population is projected to reach nearly 4 million by 2041, and the city is already preparing with new housing, transit projects, and community infrastructure.