How the other half rents: taking stock of Canada’s high-end rental market
Despite evident demand, the supply of exclusive, high-end rental units remains limited
By Murtaza Haider and Stephen Moranis
Published Feb 02, 2026
Do luxury and rental housing meet? Of course they do. Luxury rental housing is a relatively small yet critical segment of the purpose-built rental market, serving high-net-worth individuals who seek the quality of dwellings they once owned, or could easily own, without the burdens of homeownership. However, surprisingly little is known about the upper tier of the rental housing market.
The national discourse on leased housing in Canada is conspicuously lopsided. Most conversations in planning and policy circles naturally focus on affordability challenges facing lower-income households. Yet affordability is only one dimension of rental housing. The other end of the spectrum, though far less discussed, is equally instructive in understanding how rental markets function.
Luxury rentals often cater to people with multiple homes: retirees splitting time between different properties, executives on extended assignments, and globally mobile professionals who require high-quality accommodation without committing capital to ownership in every jurisdiction.
These households are not exchanging ownership for inferior living standards. They seek rental dwellings that match or exceed the quality, space, privacy and services of the homes they already own or could purchase outright. Their motivations are grounded in capital allocation, risk management, mobility and convenience.
Despite evident demand, the supply of exclusive, high-end rental units remains limited. In Toronto, for example, Realtor.ca listed more than 100 dwellings in January with rents exceeding $5,000 per month. One such suite at the Ritz-Carlton is priced at $30,000 per month. These offerings, however, often lack a critical feature valued by affluent renters: security of tenure. Individual owners may choose to reoccupy or sell their properties, forcing tenants to relocate on short notice. Purpose-built luxury rental buildings offer a more stable alternative.
Unlike hotel-style residences, where neighbours change frequently and the community is transient, purpose-built luxury rentals can be intentionally designed to foster long-term residency and social cohesion. Common lounges, libraries, fitness spaces and curated programming enable residents to build networks and a sense of belonging that is seldom achieved in investor-owned condominium towers.
Luxury rentals also present compelling financial logic. For individuals with a net worth of over $10 million, allocating $3 million or more to residential real estate in a secondary city may be inefficient, as that capital could yield higher returns elsewhere or remain liquid for strategic opportunities. Renting converts a fixed asset into a flexible expense, aligning housing consumption with portfolio management principles.
Many high-net-worth households also navigate multi-jurisdictional legal, tax and regulatory risks. Elevated property taxes on high-value homes, foreign-buyer levies and evolving compliance regimes add layers of complexity to ownership. Renting can mitigate exposure to probate complications, cross-border estate planning challenges and tax-domicile ambiguities. Interestingly, foreign renters are generally not subject to the same surtaxes imposed on foreign buyers, further strengthening the economic rationale.
The calculus is similar for senior executives seconded to new cities for finite terms. Purchasing property entails transaction costs on both entry and exit: brokerage commissions, legal fees, land transfer taxes and market risk. Renting preserves optionality and reduces friction.
In many respects, luxury rentals substitute ownership of assets with ownership of experiences and services, including architectural distinction, resort-style amenities, central locations, panoramic views, concierge assistance, valet parking and enhanced security. For those who maintain principal residences elsewhere, renting is often not a replacement but a complement.
A notable example is The James in Toronto’s Rosedale neighbourhood, developed by Tricon, a Toronto-based firm with decades of experience and a track record of creating or partnering on nearly 9,000 condominium units.
Recognizing the structural limitations of traditional condominium development, Tricon pivoted toward high-amenity, purpose-built rental housing. The James, scheduled to open in 2026, follows earlier landmark projects such as The Selby and signals a deliberate strategic shift.
Unlike condominiums whose sizes have steadily shrunk to accommodate investor preferences, Tricon’s rental projects are designed for end users, prioritizing livable floor plans, material quality and generous common spaces. The James embodies a design philosophy that places signature buildings in walkable downtown districts with easy access to transit, retail, and dining, by architects known for blending elegance and functionality.
The building is also the first residential project by the Danish architectural firm COBE, working alongside Toronto’s Hariri Pontarini Architects. Their objective is to deliver a purpose-built rental product that surpasses the standards typically associated with luxury condominiums. For households downsizing from larger homes, The James’ 127 spacious rental units, averaging approximately 1,635 square feet, aim to provide both comfort and continuity of lifestyle.
Luxury rental housing may not ever dominate the market, nor should it. Yet its presence is a reminder that housing markets are not monolithic. They respond to diverse needs, financial strategies and life stages. Ignoring the upper end of the rental spectrum narrows our understanding of urban housing dynamics and capital flows.
When purpose-built luxury rentals expand, they do more than cater to the affluent; they free capital, increase residential mobility and, paradoxically, can relieve pressure across the broader housing system by reducing speculative and secondary property ownership.
In a country preoccupied with affordability, it is worth remembering that a well-functioning housing market must serve every segment, not just the most visible one.
Murtaza Haider is the executive director of the Cities Institute at the University of Alberta and the Radhe Krishna Gupta Executive Chair in Cities and Communities at the Alberta School of Business. Stephen Moranis is a former president of the Toronto Real Estate Board and an industry veteran providing strategic market insights.
www.financialpost.com/real-estate/rents-taking-stock-canada-high-end-rental-market
