GTA Cap Rates by City and Property Type, May 2026.

We pull every sold listing from the last 180 days across the GTA municipalities we cover, then cross-reference against current rental listings in the same cities. For each city and property type combination with at least three sold comps and five rent comps, we compute a median sold price and a median monthly rent. The implied cap rate is annualized rent times a 70% NOI margin, divided by sold price. As sold-comp coverage grows, we'll publish increasingly granular cuts — neighbourhood-level analysis is the target for our July 15 update.

That 70% pass-through is a deliberately conservative shorthand. Real operating cost ratios vary by property type, condition, and tax band. For investor work we drive every individual property through the deterministic calculator that powers every property page on 6Yield. The figures here are the market-level picture, not a substitute for property-level due diligence.

The wider context matters too. The TRREB-reported average GTA selling price in April 2026 was approximately $1.05 million, with the benchmark price holding around $944,000 and average days on market climbing into the mid-fifties. Detached homes have held up better than condos, with condo apartments down roughly thirteen percent year-over-year and detached prices flat to modestly higher. This is the macro backdrop against which the neighborhood-level math sits.

Three structural patterns are visible in the May 2026 data, and they line up with what the broader market is signaling.

First, the affordability frontier in the outer 905 is producing the highest implied yields in the GTA. The cities at the top of the cap rate table all share a price-correction-driven yield premium that doesn't exist in the 416. For investors with a cash-flow mandate, these are where the math currently works.

Second, the condo apartment segment is showing yield expansion driven by price compression, not rent growth. The thirteen percent year-over-year decline in condo apartment prices, paired with rents that have held roughly flat, has pushed some downtown condo neighborhoods back into territory where the cap rate math is no longer punitive. This is a different setup than the cash-flow story at the top of the table. Buying a downtown condo for yield in 2026 is a thesis about price floors and eventual normalization, not a positive-carry strategy at twenty percent down. Cash-on-cash returns at typical leverage remain negative in most of the 416 condo market — this is the actual leverage math behind GTA cash flow — and the cap rate expansion you see in the table is a signal about value, not about cash flow.

Third, the transit-linked suburban band continues to look like the cleanest combined play. Areas with GO Train access, ongoing transit infrastructure work, and active municipal density permissions are showing implied cap rates in the high threes to low fours alongside the strongest comparable-sales appreciation trajectories. These are not the highest yielders in the table, but they're the locations where appreciation and cash flow are both telling a credible story at the same time. For a multi-year hold thesis, that combination matters more than the single highest cap rate.

A note on what we don't publish here. The city-by-property-type table aggregates median sold and median active rent. It does not adjust for property age, condition, parking, or whether the unit has a legalizable basement suite — all of which matter materially when you underwrite a specific property. The table is the market-level picture. The property page math is the underwriting picture. Use both.