The Toronto real estate market is seeing an unexpected shift as potential buyers pivot toward the rental market. Despite a 20% drop in property values since 2022, the anticipated market rebound remains sluggish. According to the Toronto Regional Real Estate Board, rentals accounted for 58% of transactions in Q1 2026, up from 30% in 2020.
Factors like softening rental prices, increased supply from purpose-built towers, and economic uncertainty are keeping buyers on the sidelines. Even luxury downsizers are opting to lease rather than purchase. While May saw a 10% month-over-month increase in sales, activity remains near historic lows for the season. With affordability at its best in nine quarters—thanks to rising incomes and lower prices—the market is in a unique state of flux. For a deeper look at these shifting trends and expert insights from local agents, read the full report at The Globe and Mail.
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