Is it worth paying more to rent in a new build in Toronto?
In an older building vs new build Toronto comparison, the honest starting point is Ontario’s rent increase guideline, and what it does and doesn’t cover. The guideline caps increases during an existing tenancy; it does not cap the rent a landlord and a new tenant agree to when a unit turns over, whether the building is older or newer, according to Ontario’s rent increase rules. Where the two building types actually diverge is what happens after a tenant moves in: a unit first occupied for residential use before November 15, 2018 is subject to the annual guideline for later increases, while a unit first occupied after that date may be exempt from the annual guideline.
What rent control protections do older Toronto buildings have that new builds don’t?
Most private residential units first occupied for residential purposes on or before November 15, 2018, are subject to Ontario’s annual rent increase guideline: 2.1% for increases taking effect in 2026, moving to 1.9% for increases taking effect in 2027. In most cases, at least 12 months must pass after the tenancy begins or since the last rent increase, whichever is later, and a landlord needs at least 90 days’ written notice before an increase takes effect, according to the province’s own guidance. A building occupied for the first time after that date, the new build in this comparison, is generally exempt from the guideline altogether: the landlord still gives at least 90 days’ written notice, using Form N2, the Landlord and Tenant Board notice used for units exempt from the guideline, but the increase itself is not limited to the annual percentage.
What are Toronto rents doing in September 2026?
Per liv.rent’s September 2026 Ontario Rent Report, the City of Toronto’s average unfurnished one-bedroom asking rent was $1,973 in September 2026, up 1.33% from August but still down 3.73% from $2,050 in September 2025. The furnished one-bedroom average moved the other way, falling 1.64% month over month to $1,898, leaving unfurnished units renting for $75 more than furnished ones on average, a reversal of the usual furnished premium.
That citywide softening isn’t about which building type can charge more at turnover: Ontario’s guideline doesn’t cap the rent a landlord and a new tenant agree to either way. Where the building types actually diverge is supply. More of Toronto’s new rental stock is arriving in exempt, post-2018 form: CMHC’s Fall 2026 Housing Supply Report, published September 10, 2026, found that purpose-built rental apartment starts in Toronto rose 82% in the first half of 2026 compared with 2025, while only 156 condominium units were started in the City of Toronto over the same period, the first time rental starts have outpaced condo starts since 1994.
| Factor | Guideline-covered example (first occupied on or before November 15, 2018) | Guideline-exempt example (first occupied after November 15, 2018) |
| Rent for a new tenancy at turnover | Landlord and new tenant agree; not capped by the guideline | Landlord and new tenant agree; not capped by the guideline |
| Annual increase during an existing tenancy | Capped by Ontario’s guideline: 2.1% for 2026, 1.9% for 2027 | Exempt from the annual guideline |
| Notice for an in-tenancy increase | At least 90 days’ written notice, at least 12 months since the last increase | At least 90 days’ written notice (Form N2), at least 12 months since the last increase, no percentage limit |
| Utilities | Varies by lease and metering; some older high-rises bundle heat or water into rent | Varies by lease and metering; some newer buildings, like Minto Westside, individually meter water and electricity |
| Common strength | Can include larger layouts and established neighbourhoods, depending on the building | Can include newer systems and larger amenity packages, depending on the building |
| liv.rent example in Toronto | Crescent Town, 1 Massey Sq (first occupied 1971) | Minto Westside, 576 Front St W (completed 2020) |
What can older Toronto buildings offer?
Older Toronto buildings can offer larger layouts, but space, sound insulation and finishes vary by property, and building age alone doesn’t guarantee a bigger unit. Crescent Town’s 1 Massey Sq in East York, first occupied in 1971 according to the Skyscraper Center, is a well known older example in Toronto’s rental market. Older buildings are also more likely to sit in established, transit-connected neighbourhoods, and for a sitting tenant, the annual guideline generally limits the next permitted in-tenancy increase, something a new build’s tenant doesn’t get once the initial rent is set.
What can newer Toronto buildings offer?
New builds can offer updated mechanical systems and larger amenity packages, though the specifics vary by property. Minto Westside at 576 Front St W, completed in 2020 according to Minto’s own project page, is one example of the exempt new supply reshaping the west harbour: its amenities include a rooftop pool, a gym, landscaped courtyards, heat recovery ventilation, and individual suite meters for water and electricity. The tradeoff is often unit size: suites in new towers can be smaller and more uniform than in older buildings, built to fit more units per floor.
Are utilities cheaper in a new build or an older Toronto building?
Not reliably either way: it depends on the lease and how the building meters utilities, not on the building’s age. Some older high-rises bundle heat or water into the rent, while some newer buildings individually meter more utilities separately; Minto Westside, for example, uses individual suite meters for both water and electricity, so a new-build tenant there pays those directly rather than seeing them folded into rent. The only reliable way to compare is to check what a specific lease includes and ask to see recent bills before signing.
How should Toronto landlords price an older unit against new-build competition?
When an older, guideline-capped unit turns over, the landlord and the new tenant are free to agree on a market starting rent, the same as in an exempt new build; the guideline only limits increases once that tenancy is underway. The stronger move for either type of building is pricing to its real, specific advantages, space, condition, location, rather than assuming one building type automatically commands more; liv.rent’s guide to writing an attractive rental ad covers how to make that case in a listing. Screening matters just as much in a 1970s low-rise as it does in a brand-new tower: checking an applicant’s Trust Score through liv.rent’s tenant screening guide works the same way in both, and a listing that clearly explains the building’s age, features and utilities gives renters useful context for comparing options.
So, which is worth paying more for: an older building or a new build in Toronto?
There is no single building type that is automatically worth paying more for. If a predictable rent during an ongoing tenancy matters most, an older, guideline-capped unit offers that: 2.1% for 2026, 1.9% for 2027. If newer systems and amenities matter more, some recently completed buildings may offer them, but budget for increases that aren’t limited by the guideline once the initial term is up. Either way, the starting rent at turnover is negotiated fresh in both building types, so compare the actual unit, its utilities and its lease terms rather than assuming the building’s age settles the question. liv.rent’s rental laws hub and liv.rent’s rent reports are worth checking before the next renewal, whichever side of this comparison a reader is on.
Is a new build always more expensive to rent than an older building in Toronto?
Not necessarily. Ontario’s rent increase guideline doesn’t cap the starting rent a landlord and a new tenant agree to at turnover, in an older building or a new build. The real difference shows up later: a unit first occupied after November 15, 2018 is exempt from the annual guideline for increases during the tenancy, while an older unit is capped at 2.1% for 2026 and 1.9% for 2027.
What is Ontario's rent increase guideline for 2026?
Ontario’s guideline is 2.1% for increases taking effect in 2026, rising to 1.9% for 2027. It generally applies to units first occupied for residential use on or before November 15, 2018; units built after that date, along with some care home and non-profit housing, are exempt, according to the province’s own guidance.
Do landlords need to give notice before raising rent on an exempt new-build unit?
Yes. Even an exempt unit needs at least 90 days’ written notice, using Form N2, and at least 12 months since the last increase, though the increase itself isn’t limited to the annual guideline percentage.
Are utilities cheaper in an older building or a new build in Toronto?
Not reliably either way. It depends on the lease and how the building meters utilities rather than the building’s age: some older buildings bundle heat or water into rent, while some newer buildings, including Minto Westside, individually meter utilities like water and electricity.
What was Toronto's average one-bedroom rent in September 2026?
The average unfurnished one-bedroom asking rent was $1,973, and the average furnished one-bedroom was $1,898, according to liv.rent‘s September 2026 Ontario Rent Report.
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