Toronto Digital Nomad Wave: Why and Where the City Is Attracting Tenants

Even with Doug Ford’s forcible return to the office for government workers, it’s clear we aren’t going back to a time of traditional nine-to-fives being the only option. Digital nomadism, which existed before the pandemic, is now a non-negotiable way of life for many Canadians. The great thing for short-term real estate investors? They may have missed out on revenue during COVID-19, but now things have opened up enough for uncubicled folks to be travelling the world – and they all need somewhere to stay.

What Is Digital Nomadism?

Digital nomadism is a lifestyle and work model where individuals leverage digital technologies to work remotely while traveling frequently.

Unlike traditional remote workers who may be home-based, digital nomads are highly mobile and choose their location based on freedom and personal preference. Because they're always on the move, these professionals heavily rely on platforms like Airbnb for accommodation when moving from city to city. 

Why Toronto Appeals to Digital Nomads

Toronto's appeal to digital nomads is rooted in its advanced connectivity, abundant coworking spaces, multicultural atmosphere, and robust job opportunities—especially in the tech sector. High-speed internet, modern apartments, proximity to global hubs such as New York and Montreal, and a diverse, welcoming community make it easy for newcomers to settle and work productively. Canadian digital nomad visa pathways further lower barriers for international tenants seeking flexible, short-term accommodation.

Market Dynamics: Why Now?

Since mid-2025, Toronto’s rental market has seen a flood of new units, rising vacancy rates and a softening of rents. That’s a relative reversal from the ultra-competitive environment of recent years. An abundance of choice, paired with incentives like discounted rent and lease flexibility, makes Toronto an especially attractive, convenient, and cosmopolitan destination among North American cities.

A Lucrative Opportunity

Digital nomadism is rapidly transforming Toronto into a new frontier for short-term real estate investors. The global trend toward flexible, remote work arrangements is fueling demand for furnished, adaptable, and conveniently located rentals in the city’s most energetic neighborhoods – all you have to do as an investor is be smart about which one you select.

Where Do the Best Opportunities Lie?

Just like its population, Toronto’s real estate market is incredibly diverse. Every neighborhood is essentially a little world in and of itself. Both developers and prospective visitors have no shortage of unique environments to work with – or in. 

The most popular neighbourhoods in Toronto for digital nomads as of 2025 are The Annex, Queen West, Kensington Market, Liberty Village, and St. Lawrence Market. Real estate investors should keep an eye on these specific opportunities heading into 2026:

The Annex

Centrally located with excellent access to public transit, filled with coworking spaces, lively cafés, and community parks. Its proximity to the University of Toronto and downtown makes it ideal for networking and convenience.

• A landmark proposal at 41–45 Spadina will add a 10-storey, contemporary residential addition to a 1905 heritage apartment, increasing the total to 94 units and incorporating significant amenity spaces while preserving historic architecture.
• Mirvish Village, a massive mixed-use redevelopment at Bloor and Bathurst, is transforming the former Honest Ed’s block with new residential towers, retail, and community space.

Queen West

Known for its trendy boutiques, vibrant arts scene, and abundance of coworking cafes. Trinity Bellwoods Park is highly favored for creative and youthful energy.

• Carttera’s $28 million acquisition of 1266 Queen Street West will bring a 24-storey, purpose-built rental tower with over 330 suites, prioritizing rental stock absorption and family-sized units; construction starts 2026.
• QuadReal purchased 1149 and 1153 Queen St. W., a key site earmarked for future mid- or high-rise residential, leveraging the site’s mixed-use zoning and proximity to transit.
• Mixed-use buildings like 198 Bathurst, featuring commercial retail below and residential above, continue to receive investment as the area’s vibrant retail and residential mix fuels high demand.
• The neighbourhood also saw new proposals to add density atop heritage properties, as at nearby 1117 Queen St. W.

Kensington Market

This neighborhood is walkable, filled with unique coffee shops and open-minded locals, not to mention super eclectic thanks to an innate bohemian atmosphere and multicultural food scene.

• MRKT Condos, developed by Tridel at 593 Dundas St. W., offers new high-end condominium options for urban dwellers, with occupancy in 2025.
• The Kensington Market Community Land Trust acquired key mixed-use buildings at 54-56 Kensington Ave and 380 Spadina Ave.
• College and Manning Condos, a Ryocan project at 555 College St., will further bolster new housing supply once timelines are announced.

As digital nomadism gathers pace in Toronto, short-term real estate investors can take advantage by offering furnished, flexible accommodations in desirable neighborhoods – adapting product offerings to a new, global client base and capturing returns that outpace traditional long-term leases in the city’s evolving rental landscape. 

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As always, we highly recommend doing your research into both neighborhood and broader market trends before making any kind of investment. Because at the end of the day it doesn’t matter how hot a given city is; Airbnbs and other short-term rentals are only as successful as they are carefully selected and well-curated to shifting preferences.