Market update: purpose-built rental is returning to Ontario cities
Doorvia Research · August 13, 2026
After decades of condo-led rental supply, purpose-built apartment construction is growing again - and that matters for tenants.
For much of the last thirty years, new rental supply in Ontario came mainly from investor-owned condominiums. Purpose-built rental construction had slowed dramatically after the 1970s.
That is changing. Policy shifts, including the removal of some tax barriers on new purpose-built rental construction, along with municipal incentives, have made larger rental projects viable again in several Ontario cities.
For tenants, purpose-built buildings usually mean professional management, longer-term stability and less risk of an owner selling the unit. They are also generally exempt from the rent increase guideline if first occupied after November 15, 2018, so ask about the building's occupancy date.
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