# Why record rentals won't stop our looming housing shortage

By [Brandon Donnelly](https://brandondonnelly.com) · 2026-02-05

toronto, housing, rental, development, real-estate, construction, housing-starts, condominiums

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As most of you know, the Toronto housing market has shifted its attention from condominiums to rentals. This is out of necessity. [According to the Toronto Regional Real Estate Board](https://trreb.ca/market-data/rental-market-report/#:~:text=The%20number%20of%20condo%20apartment,cent%20year%2Dover%2Dyear.), the GTA saw approximately 71,392 condominium apartments leased (counting only those leased through MLS) in 2025.

  

**Quarter**

**Units Leased**

**Y-o-Y Change**

Q1 2025

14,797

+16.7%

Q2 2025

20,417

+16.6%

Q3 2025

22,491

+20.2%

Q4 2025

13,687

+16.0%

Total

71,392

  

  

These increases are a result of having no other option. As demand has waned for new condominiums, a greater number of investors have decided to rent out their new condos. If you're a tenant looking for a new home to rent, this has been good news.

At the same time, [Urbanation just reported](https://www.urbanation.ca/news/nearly-10000-gtha-rentals-started-contruction-2025) that a total of 9,821 purpose-built rental apartments started construction in 2025, representing a 42% increase from the year prior. This is the highest annual total since the 1970s.

At year-end, this resulted in a total of 27,815 purpose-built rental apartments under construction in the Greater Toronto & Hamilton Area. And like individual condominium buyers, developers are doing this because there is, in most cases, no other option.

But while these may seem like large numbers, it's important to keep in mind that new condominium completions are currently on a downtrend toward zero completions in the coming years (for all intents and purposes).

Even with rental starts approaching 10,000 units per year, it's not enough to replace the condominium supply that is starting to evaporate. Based on current sales and starts, [2029 looks to be the year](https://brandondonnelly.com/why-2029-will-be-the-bottom-for-toronto-housing-supply) where we'll hit our housing supply bottom.

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_Cover photo by_ [_Nadine E_](https://unsplash.com/@nadineshaabana?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) _on_ [_Unsplash_](https://unsplash.com/photos/gray-curtain-glass-wall-building-Vr5-MFYo9wU?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText)

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*Originally published on [Brandon Donnelly](https://brandondonnelly.com/why-record-rentals-wont-stop-our-looming-housing-shortage)*