New report shows more rental vacancies, but tenant advocates say affordability still an issue

The number of available rental units in the London region is the highest it’s been in the last 15 years, with a 4 per cent vacancy rate according to the Canada Mortgage and Housing Corporation’s (CMHC) 2025 Rental Market Report.

“You’ve had quite significant increases in rental apartment construction in London in recent years,” said Anthony Passarelli, senior specialist-market insights with CMHC. “Some of those units have been completed and put on the market. So, you’ve had more supply hitting the market.”

The CMHC projects the supply will continue to grow in the foreseeable future, with many more units ready to come online in 2026 and 2027.

Passarelli notes that along with an increased number of rental units, demand has also eased.

“A big part of that is that international student component where in London it’s a strong driver of rental demand and that those numbers have really come down this year, with the international student cap,” he said.

Claire Wittnebel, chair of the Central London Chapter of ACORN, a tenant’s rights advocacy group, questions whether renters will see substantial relief from what she says are already inflated rents.

“You look anywhere downtown London that the homeless situation is only getting worse,” she said. “So, I think the increase in vacancy is more reflective of people just not being able to afford units at all.”

She contends a change in rent control rules in Ontario opens the door to further rent increases for properties built after 2018.

“Any new units that have affordable prices do not have any guarantee, maintaining affordability because they no longer fall under rent control,” she said. “So, it is entirely possible that the landlord might offer an affordable unit and then the next year, increase it as much as they want after they’ve got their claws in you.”

Passarelli says prices have started to moderate but are still rising. The average rental price for a two-bedroom apartment in this region was $1,651 in 2025, up 4.1 per cent over the previous year.

Still, he believes the door is opening for renters to be more selective in where and how they live, with some being able to upgrade for not much more than they are currently paying.

“It is a welcome change. We’ve had a long run of periods where it was really favorable to the rental operator,” he said. “So that renters are getting a bit of relief.”

Wittnebel insists all levels of government still need to introduce laws to ensure units are maintained properly and are fairly priced.