Condo rents in Toronto have decreased for the first time in three years, with average prices dropping 1.2% year-over-year in Q2 2024 to $3.97 per square foot, translating to approximately $2,723 for a typical 686-square-foot unit. This decline is partly attributed to a spike in condo completions, although demand remains high with a record 16,169 lease transactions during the quarter, a 29% increase from the previous year. Notably, studio apartments experienced the largest rent drop at 3.9%, while other unit types saw smaller decreases. Despite the overall drop in rents, the 905 area recorded a 2.0% increase in rental prices, highlighting regional disparities. Urbanation's president cautioned that the rent reprieve may be temporary due to expected declines in new condo sales and construction activity. The increase in listings, up 47% year-over-year, has contributed to the current rental market dynamics.