Build-to-Rent Projects Promise Stability-But At What Cost for Toronto Renters?

Just north of Liberty Village, excavators have taken over a dusty lot at 77 Wade Avenue. By late 2027, this site will be home to 375 apartments, all managed by GWL Realty Advisors-and not a single unit will be sold as a condo. Instead, every apartment is earmarked for rental only, part of Toronto’s accelerating build-to-rent (BTR) wave.

The push for new BTR towers comes at a time when buying remains out of reach for many. The Toronto Regional Real Estate Board pegged the city’s average home price at $1.1 million in June, while a standard downtown condo now routinely sells for $740,000 or more. Mortgage rates-currently hovering around 5.6% on five-year fixed-have piled on more pain for would-be buyers. For many, renting is the only realistic route, and purpose-built rentals aim to cater to that demand.

Big Money Bets on Rentals, Not Condos

Unlike legacy apartment blocks of yesteryear, modern BTR projects are marketed with amenities that rival or surpass new condo towers. Take EQ Bank Place at Gerrard and Jarvis: rooftop pools, 24-hour concierge, co-working lounges, even pet-washing stations have become standard. Developers like Fitzrovia and BentallGreenOak are launching towers in Midtown-such as the recently opened 44 Broadway-and along the East Waterfront, hoping to lure tenants priced out of home ownership but seeking long-term stability and a sense of community.

City Hall has noticed the trend. In May, the City of Toronto’s Housing Secretariat announced a $20 million investment through the Multi-Unit Residential Acquisition program, partnering with non-profits like WoodGreen to secure existing rentals or help develop new BTR stock. The city’s Housing Now initiative, which fast-tracks purpose-built rental projects on public land-such as the much-watched development at Bathurst and Lake Shore-signals officials’ desire to boost the rental pipeline further.

Premium Rents, But Predictable Tenure

The flip side: premium amenities mean rents stretch budgets. In June, the median rent for a newly built one-bedroom apartment in a BTR tower downtown hit $2,570, according to Urbanation Inc.-about 20% higher than units in older apartment blocks on Parliament Street or St. Clair West. Two-bedroom suites at the new Peter & Adelaide tower rent for $3,400 and up, data from Rentals.ca shows. But renters say these buildings offer a tradeoff: strict professional management, units designed for long-term leases, and fewer investor-owned condos where tenants risk mid-lease eviction if the owner decides to sell.

"The certainty matters," said one 32-year-old tenant who recently moved into a BTR suite at The Selby on Sherbourne. “I don’t want to be listed on MLS every 12 months.” For newcomers-Toronto logged an estimated 163,000 new residents in 2025-secure renting with no risk of renoviction is a powerful draw.

Still, advocates warn affordable options remain scarce for lower-income tenants. As of July 2026, the affordable component in most major BTR developments-typically 10% to 15% of units, per city policy-remains well below demand levels.

What Next for Renters?

With another 7,900 purpose-built rental units slated for completion by 2028, according to CMHC forecasts, renters will soon have more options-if they can handle the sticker price. Experts advise prospective tenants to watch not just the starting rent but also utilities (often extra), parking, and the status of amenity fees, which can push a "$2,400" unit to $2,700 once all costs are tallied.

For those weighing rent versus buy, the equation tilts toward renting for now-especially for anyone lacking a six-figure down payment. But the biggest test for Toronto’s BTR boom won’t be glossy gyms or high-end dog runs. Ultimately, the city’s newcomers and established residents alike are seeking homes-and the real measure of success will be whether BTR buildings can offer not just stability, but a path to true affordability.