St. Catharines, London and Hamilton emerge as the province’s lowest-cost cities for one-bedroom units
A new national rental study is offering encouraging news for some Ontario tenants, identifying the province’s most affordable cities at a time when housing pressures remain top of mind.
The 2026 Annual Rental Trend Report released by digital rental platform liv.rent highlights shifting conditions across Canada’s housing market, including declining rents in several regions, slower construction activity and changes in migration patterns.
Across the country, the rental vacancy rate rose to 3.1 per cent, while immigration declined 18 per cent year-over-year. At the same time, housing-start activity weakened in many urban centres. The report cautions that project cancellations and lengthy development timelines could create renewed supply shortages within the next two to three years if construction does not recover.
Ontario saw notable demographic changes in 2025, recording a net loss of 178,978 non-permanent residents. This marked a reversal from 2024, when the province had posted a net gain of 99,347. Homebuilding also slowed significantly, with housing starts falling 17 per cent year-over-year. Apartment construction dropped nine per cent, reflecting broader challenges in the development sector.
The report links the slowdown to high taxes and fees, along with softening demand for condominium units, which has led to delays and cancellations of projects.
Rents have eased across Canada, and Ontario is no exception. The average monthly rent for an unfurnished one-bedroom unit in the province is now $1,888, representing a year-over-year decline.
For renters seeking more affordable options, three Ontario cities stand out. St. Catharines ranks as the least expensive market, with an average one-bedroom rent of $1,599. London and Hamilton follow closely behind, rounding out the top three lowest-cost cities in the province.
In contrast, the Greater Toronto Area remains among the most expensive regions for tenants. The report identifies Markham, Burlington and Mississauga as the top three costliest cities in Ontario for renters. However, despite appearing on the list of higher-priced markets, Mississauga also recorded one of the most significant year-over-year price declines. York Region, Vaughan, Richmond Hill and Scarborough similarly saw notable drops in rental prices.
One city moved against the broader trend. Niagara Falls was the only Ontario market to post year-over-year rent increases across all rental types, standing out as an exception in a province where most rents declined.
Nationally, British Columbia continues to have the highest rental prices in Canada, while Winnipeg ranks as the most affordable major city, with an average one-bedroom rent of $1,291.
The latest figures suggest Ontario renters may be seeing modest relief in the short term. However, with construction slowing and development projects being delayed, the report signals that today’s easing could give way to renewed supply pressures in the years ahead — a factor that could once again reshape the rental landscape across the province.