Toronto’s short-term rental market remains one of the strongest in North America. With international travel rebounding and domestic tourism at an all-time high, the city offers an ideal landscape for Airbnb hosts and property owners. Whether managing a single condo or scaling a portfolio, choosing the right neighbourhood is critical to long-term success.
Let’s explore the top Toronto neighbourhoods for Airbnb short-term rentals in 2025 based on demand trends, guest preferences, and rental performance potential.
Waterfront Communities
Often called “the heart of the action,” Toronto’s Waterfront Communities—including the Financial District, King West, and the Toronto Harbourfront—dominate the city’s Airbnb market. High-rise condos like Ice Condos, 300 Front Street West, and Maple Leaf Square consistently attract tourists and business travellers willing to pay a premium.
Most Airbnb inventory in this district consists of one-bedroom units, so two- and three-bedroom furnished condos offer a competitive edge and less saturation. Proximity to attractions like the CN Tower and Rogers Centre makes this area a perennial favourite.
Queen West
Queen West is among the top-performing Toronto Airbnb neighbourhoods due to its creative, residential vibe and cultural cachet. It has limited Airbnb-friendly condos, which leads to high demand and impressive occupancy rates, even during off-peak seasons.
Renovated townhomes and unique lofts excel in this area. With galleries, music venues, and indie restaurants nearby, it attracts young professionals, creatives, and remote workers looking for a dynamic local experience.
Kensington Market
Kensington Market continues to thrive as a high-yield Airbnb zone despite limited inventory. It is one of the most visited neighbourhoods in the city, and its charm, diversity, and walkability keep guest demand high year-round.
There are few hotels in this historic area, so modernized rentals—especially above storefronts—see strong returns. Guests value authenticity, and this neighbourhood delivers.
Bay Street Corridor
The Bay Street Corridor draws business travellers, medical visitors, and academic guests thanks to its proximity to major hospitals, the University of Toronto, and financial institutions.
Unlike some parts of downtown, many condos here do not allow short-term rentals, so permitted properties stand out and perform very well.
Consistent year-round demand and low vacancy make this neighbourhood a reliable source of rental income.
Liberty Village
Liberty Village is no longer just a residential hub for young professionals—it’s now a seasonal Airbnb hotspot, especially in the summer.
Properties near Fort York, Budweiser Stage, and BMO Field attract tourists attending concerts, festivals, and sports events. Buildings like Neptune Condos and Local at Fort York are Airbnb-approved and show excellent seasonal occupancy.
Yorkville
Known for its upscale charm, Yorkville offers a mix of boutique condos and high-end townhomes. Properties like 155 Yorkville Avenue generate strong summer returns, though many hosts switch to medium-term rentals in winter.
Luxury homes in this area are rare on Airbnb, so those available often book up months in advance, especially among high-net-worth travellers.
The Annex
The Annex remains a laid-back yet vibrant alternative to King West or Queen West. With fewer hotels and limited condo inventory, freehold homes and character-filled properties thrive in this neighbourhood.
The area’s diverse food scene, proximity to transit, and popularity with international travellers give it strong potential for Airbnb success. Low-season discounts help maintain occupancy during slower periods.
Final Note
Even neighbourhoods outside the “top-performing” zones see strong demand in peak seasons, thanks to Toronto’s reputation as a global city for business, culture, and tourism. Understanding your audience is key, whether you’re hosting in Liberty Village, Queen West, or Kensington Market.
There’s also robust year-round demand for furnished executive rentals, especially in central locations.
To turn your property into a high-performing listing, consider partnering with Airbnb Management Toronto to streamline your operations and unlock consistent rental income.