Mandatory returns to in-person work are fuelling a sharp rise in downtown Toronto condo rentals, as high-income professionals opt to rent rather than sell suburban homes or buy into an uncertain condo market.
Real estate agents say many of the new renters work in finance, tech, law, and government, earn high salaries, and moved to the suburbs during the pandemic when remote work was common. Now required to be in the office full-time or most of the week, they are choosing to rent a second residence in Toronto’s core instead of purchasing a condo.
“These are people who could easily buy, but don’t want the risk right now,” said Toronto real estate salesperson Andrew Van Buskirk, noting concerns about falling condo prices and uncertainty over how permanent return-to-office policies will be.
According to the Toronto Regional Real Estate Board (TRREB), rental transaction volumes in 2025 were the highest in four years, with the strongest activity concentrated downtown. From January to September 2025, more than 57,700 rental transactions were recorded, up sharply from 36,600 over the same period in 2022.
Downtown units, particularly larger condos, are being leased quickly. In Toronto’s core (C01 district), TRREB reports year-over-year increases of 17.5 per cent for one-bedroom rentals, 17.4 per cent for two-bedroom units, and 34 per cent for three-bedroom condos in the third quarter of 2025.
Realtors say flexibility is a key driver. Renting allows workers to avoid selling suburban homes at a loss, sidestep vacant home taxes, and wait out volatility in the condo market, where prices are forecast to decline further in 2026.
The trend is also linked to rising office occupancy. Commercial real estate firm Avison Young reports increased office leasing activity in downtown Toronto, with vacancy rates falling from 18.6 per cent early in 2025 to 15.9 per cent by year-end.
Despite higher demand, experts do not expect rents to rise significantly in the near term, citing ample supply and ongoing affordability pressures. For now, analysts say return-to-office mandates are reshaping downtown living — pushing more professionals to rent, at least until workplace policies and housing markets stabilize.