Toronto’s rental market is seeing a noticeable shift this summer, and it’s tipping in favour of renters. With demand cooling and vacancies on the rise, some desperate landlords are now offering free rent incentives just to secure tenants. Yes, free rent, from a few weeks to even a full month, is increasingly showing up in listings across the city. This marks a sharp contrast from the past few years when bidding wars, long lineups for viewings, and soaring rent prices left tenants scrambling. But rising interest rates, declining immigration numbers, and a growing number of newly built units have started to change the landscape.

Free Rent Deals Appearing Across Toronto

Listings in areas like Liberty Village, CityPlace, and parts of North York are now advertising promotions like “One Month Free” or “First Two Weeks Rent-Free.” In some cases, landlords are even covering move-in costs or tossing in gift cards to sweeten the deal.

Experts say this reflects a shift in supply-demand dynamics. Many buildings that once had waitlists now have dozens of available units, and landlords are looking for ways to stand out.

Why the Market Is Changing

New condo supply: A record number of new condo completions in 2024 and 2025 have flooded the market with rental units

Immigration slowdown: Immigration targets have softened, slowing population growth

Cost of living: Rising cost of living is pushing renters to downsize or leave the city entirely

Room sharing and family moves: Some tenants are doubling up or moving back in with family

With more supply and slightly lower demand, landlords are being forced to compete — a rare sight in Toronto’s notoriously competitive rental market.

What This Means for Renters

For prospective renters, this is an opportunity to negotiate more than just price. You might ask for a rent discount, a longer grace period before your first payment, or flexible lease terms.

Still, renters should read the fine print. Free rent incentives may apply only to the first month and are sometimes tied to signing longer leases or meeting specific move-in dates.

A Temporary Window of Relief?

While it’s too early to call it a full-on renter’s market, this softening could continue into the fall. Market watchers say this period of opportunity won’t last forever, especially if immigration picks up again or interest rate cuts revive investor activity.

In the meantime, renters can enjoy rare leverage in a city where affordable housing has felt out of reach for years.