In the last six months, a new trend has emerged in Toronto’s real estate market. High-income earners who bought property outside the city during the pandemic are returning to the city, not to buy, but to rent. Mandated by their employers to work in-person full-time, these individuals are seeking a home base in the city without the commitment of owning two properties. This development is having a significant impact on Toronto’s downtown rental market.
High-Income Earners Returning to the City
Real estate salesperson Andrew Van Buskirk has noticed a specific type of client in recent months. These individuals typically earn upwards of $370,000 a year, boast perfect credit scores, and work in the finance industry. They purchased properties in the GTA suburbs or just outside it during the pandemic and are now mandated by their employers to return to work in-person full-time. However, they do not want to sell their suburban homes or uproot their families. Instead, they are choosing to rent condos in Toronto’s downtown core.
According to Van Buskirk, their reasons for renting instead of buying are varied. Some are wary of the potential risk of a condo crash, while others want to wait and see if the demand for in-person work remains before making another significant property investment. “The level of applicant is astounding,” he says.
Impact on Toronto’s Real Estate Market
This shift in behavior is impacting Toronto’s real estate market, particularly the downtown rental sector. The Toronto Regional Real Estate Board (TRREB) reports that rental volume in 2025 was the highest it had been in four years, with high leasing activity observed in the city’s downtown core. Furthermore, commercial leasing activity for office space has increased in the second half of 2025, with office vacancies expected to decrease for the rest of the year, according to commercial real estate firm Avison Young.
Condos for Rental in High Demand
Tom Storey, a real-estate agent at Royal LePage Signature Realty, has noticed a similar trend with his clients. Most of them are from major banks, which have mandated employees to come into the office at least four days a week. Like Van Buskirk’s clients, they bought property outside Toronto during the pandemic and are now looking to rent in the city for a better commute. Renting offers them more flexibility and fewer risks than buying in an unpredictable market.
Amrit Walia, a realtor with Royal LePage Signature, notes that transit-friendly downtown units are in high demand. According to TRREB, the total rental transaction volume from Jan. 1 to Sept. 30, 2025, was more than 57,700 units — a significant increase from 36,600 in 2022 during the same time period.
A Shift to Renting Over Buying
While the return-to-work mandates are certainly driving this trend, there are other reasons why these high-income earners are choosing to rent instead of buy. Economic uncertainty and the potential for another lockdown are factors. Moreover, as homeowners, they would have to file the vacant home tax if they only lived in their Toronto home part-time, an additional cost and concern many are keen to avoid.
Office Vacancies Trending Down
As employers require their staff to be in the office more frequently, demand for office space in Toronto’s downtown core is increasing. Avison Young Canada president Mark Fieder reports a flurry of activity with companies seeking new space to accommodate their growing workforce. As a result, office vacancies are expected to drop to around 12 to 14 per cent by the end of 2026, similar to 2022 and 2023 levels.
Rent Prices Stable Despite Increased Demand
Even with this increased demand for rental properties, experts do not expect rent prices to increase over the next year. This is due in part to the record supply of new condos hitting the market as a result of the pandemic presale boom. Analysts are confident that prices will continue to drop on a year-over-year basis for the next few months. “There’s this shift happening,” says Walia. “We’re seeing much more rental movement now compared to a year ago and that will continue.”
