London, Ont. Rents Drop to Three-Year Low: What It Means for Tenants
If you’re renting in London, Ontario, here’s some good news: rents have fallen to their lowest levels in nearly three years. The average asking price for a one-bedroom apartment is now $1,560, and a two-bedroom unit averages $1,930. That’s a 4.5% drop compared to the same time last year, according to new figures from the first quarter of 2026.
This means you could save hundreds of dollars a year on rent compared to 2024 and 2025. But the trend may not last forever, so acting now could lock in lower costs.
Why Are Rents Dropping?
Two main factors are driving this decline:
- Slower population growth – Federal immigration changes have reduced the number of new people moving to London, easing demand for rental units.
- More rental construction – A boom in purpose-built rentals has added over 1,600 new units in early 2026 alone. More supply means lower prices.
These forces have pushed rents back to levels not seen since summer 2023. However, prices are still above pre-COVID levels, so the market isn’t fully back to normal.
Who Is Affected?
- Tenants in London, Ontario – You’re seeing the biggest benefit, with lower rents across one-bedroom and two-bedroom units.
- Students – Single bedrooms are now averaging around $750, offering more stable rates for those looking for shared housing.
- Renters in similar markets – Cities like Windsor, Kitchener, and Hamilton are also seeing downward pressure on rents, so this trend may spread across Southwestern Ontario.
- Landlords – You may need to adjust expectations or offer incentives to attract tenants in a softer market.
What You Should Do
If you’re a tenant, this is a rare window of opportunity. Here are actionable steps:
- Negotiate your lease – If your renewal is coming up, ask your landlord for a lower rate. Use the new market data as leverage.
- Consider moving – If you’re in a more expensive unit, look for comparable apartments at the new lower prices. You could save $50–$100 per month.
- Lock in a longer lease – If you find a good deal, sign a 12-month or longer lease to protect against future rent increases.
- Monitor the market – Rents could rise again if population growth picks up. Check listings monthly to spot the best deals.
- For students – Look for single bedrooms around $750. These are more affordable than in recent years, so act quickly before demand picks up in the fall.
Bottom Line
London, Ontario rents have hit a three-year low, with one-bedroom units averaging $1,560 and two-bedroom units at $1,930. This is driven by slower population growth and a surge in new rental construction. Tenants in London and similar Southwestern Ontario markets should negotiate leases, consider moving, and lock in lower rates now. The trend may not last if immigration picks up again, so don’t wait.