Should You Rent or Buy After Downsizing in Ontario?
Updated: February 2026
By the Keith and Françoise Real Estate Team, Ontario REALTORS®, with eXp Realty Brokerage. We advise downsizers across the Greater Toronto Area and the Niagara Region on how renting or buying fits into their next stage of housing.
Key Takeaway
Renting after downsizing offers flexibility, while buying provides long-term stability. The better choice depends on timing, cash flow, lifestyle priorities, and how certain you are about where you want to live next.
After downsizing, many homeowners face a second decision: whether to rent or buy next. Both options can work, but they solve different problems. This article outlines how renting and buying typically compare for Ontario downsizers.
For the full downsizing framework, start with Downsizing in Ontario.
Why renting after downsizing appeals to some homeowners
Renting can make sense for downsizers who want flexibility. It allows time to adjust to a new area, wait for market conditions to change, or avoid committing to another purchase immediately. For some homeowners, renting acts as a short-term bridge rather than a permanent solution.
Common reasons downsizers choose to rent
- Uncertainty about long-term location
- Desire to reduce responsibility temporarily
- Waiting for suitable inventory to become available
- Preferring predictable monthly housing costs
Why buying after downsizing still makes sense for others
Buying appeals to downsizers who want stability and control. Ownership provides long-term housing security and removes exposure to rent increases. For homeowners with a clear plan and sufficient equity, buying can feel more predictable than renting.
Common reasons downsizers choose to buy
- Desire to settle into a long-term home
- Preference for ownership and control
- Avoiding ongoing rent increases
- Using released equity to reduce or eliminate a mortgage
How costs differ between renting and buying
The cost comparison between renting and buying goes beyond monthly payments. Renting often has lower upfront costs, while buying involves closing costs, maintenance, and property taxes. Comparing total monthly carry helps clarify which option aligns better with your goals.
Market conditions matter in Ontario
Ontario housing markets can vary significantly by region. Rental availability, purchase prices, and competition all affect whether renting or buying is more practical at a given time. Understanding local conditions helps avoid decisions based on assumptions.
CMHC rental market data provides insight into vacancy rates and rental conditions across Ontario. CMHC Rental Market Report Data Tables ” target=”_blank” rel=”noopener”>Canada Mortgage and Housing Corporation (CMHC).
Flexibility versus certainty
Renting offers flexibility if plans change. Buying offers certainty if your next chapter is already defined. Neither option is inherently better, but each supports a different stage of downsizing.
What usually comes next
Once the rent-versus-buy decision is clearer, downsizers can move forward with confidence. This choice should be resolved before locking in move dates, since it affects budget limits, location flexibility, and timing between selling and securing the next home.
FREQUENTLY ASKED QUESTIONS
Yes. Many downsizers rent temporarily after selling to gain flexibility, learn a new area, or wait for suitable inventory before committing to another purchase.
Not necessarily. Renting may have lower upfront costs, but long-term expenses depend on rent levels, market conditions, and how long you plan to stay.
Buying often makes sense when downsizers have a clear plan, want long-term housing stability, and prefer ownership over ongoing rent exposure.
Yes. Rental availability, vacancy rates, purchase prices, and competition vary by region and can influence which option is more practical at a given time.
Renting first can work well, but it may expose downsizers to changing prices or limited inventory later. Understanding timing and local conditions helps manage that risk.
THE RIGHT CHOICE DEPENDS ON TIMING AND CERTAINTY
If you are weighing whether to rent or buy after downsizing, understanding how each option fits your timeline can make the decision clearer.
Disclaimer: This page is provided for general information only. Renting and buying decisions depend on market conditions, personal finances, and individual circumstances.