London renters may find some relief in 2026 as the city continues to experience a dip in rental prices, according to the latest report from Rentals.ca.
The December 2025 report shows that one bedroom apartments in London are down about 6.5% compared to last year, while two bedroom units have dropped just under 5%. The city’s average rent now sits roughly $100 below the national average of $2,060 per month.
Giacomo Ladas, analyst and associate director with Rentals.ca, says the decline is driven by a combination of factors affecting both supply and demand.
Photo Taken By: (Zumper)
“What’s happening now is a bit of a course correction from the years between 2020 and 2023, when demand far outpaced supply and rents skyrocketed,” Ladas explained.
At the same time, more rental units are hitting the market, pushing vacancy rates higher, a key factor influencing prices.
“When vacancy rates rise, rental prices naturally come down,” Ladas said. To entice renters, landlords are increasingly offering incentives such as free months of rent, rather than deep cuts. “If you find a one bedroom apartment for $1,900 a month, with two months free, you could save almost $4,000 a year,” he noted.
Not all segments of the market are seeing declines, though, as larger units and lower income housing continue to experience high demand, keeping prices more stable. “A three-bedroom apartment in London can be split three ways, which makes it very attractive, so rents in these units aren’t dropping as much,” Ladas said.
Photo Taken By: (BlueStone Properties)
Looking ahead, Ladas predicts 2026 will remain a favorable market for renters. “There’s a lot of supply coming in, demand is relatively low, and moving incentives aren’t going anywhere. It could be a pocket of time when renters can really find deals,” he said.
Compared to other Ontario cities, London remains more affordable. The city ranks 41st in the Rentals.ca report’s 60-city snapshot, with rents roughly $300 below the provincial average.
For renters considering a move, Ladas suggests the combination of lower rents, incentives, and relative affordability makes London an attractive option, especially for those willing to commute to higher cost job centers like Toronto a few days a week.
As supply continues to grow, London renters may continue to see more lower prices through 2026, offering a bit of breathing room in a market that has long been a challenge for many Canadians.
