While rental prices in Ontario have seen modest declines in recent months, affordability remains a challenge in many cities, according to a new report by real estate brokerage Zoocasa. The report analyzed average incomes and two-bedroom rental prices across Ontario to identify where rents outpace earnings and where renters may find better affordability.
The traditional rule of keeping housing costs within 30% of post-tax income is far from reality for renters in Ontario’s most expensive cities:
- Toronto:
- Average Income (Dual Earners): $101,040/year
- Average Rent (2-bedroom): $123,080/year
- Income Gap: 21.8%
- As Ontario’s most expensive rental market, Toronto renters face significant financial strain, with rent far outpacing incomes.
- Mississauga:
- Average Income (Dual Earners): $101,040/year
- Average Rent (2-bedroom): $118,400/year
- Income Gap: 14.3%
- Mississauga remains the second most expensive city for renters, though the gap is slightly smaller compared to Toronto.
- Brampton:
- Average Income (Dual Earners): $75,920/year
- Average Rent (2-bedroom): $93,520/year
- Income Gap: 23.2%
- Despite lower rents than Toronto and Mississauga, Brampton residents experience the largest income gap, driven by significantly lower household incomes.
For renters seeking a better balance between income and housing costs, several cities in Ontario offer relief:
- Hamilton:
- Average Income (Dual Earners): $117,400/year
- Average Rent (2-bedroom): $83,320/year
- Income Surplus: 40.9%
- Hamilton stands out as Ontario’s most affordable rental market, with incomes significantly exceeding housing costs.
- Burlington:
- Average Income (Dual Earners): $111,400/year
- Average Rent (2-bedroom): $101,160/year
- Income Surplus: 9.2%
- Burlington offers a comfortable surplus, making it a desirable option within the GTA.
- Kitchener:
- Average Income (Dual Earners): $89,440/year
- Average Rent (2-bedroom): $88,880/year
- Income Surplus: 0.6%
- Kitchener maintains a near-perfect balance between incomes and rent costs.
- Ottawa:
- Average Income (Dual Earners): $112,000/year
- Average Rent (2-bedroom): $99,320/year
- Income Surplus: 12.8%
- The nation’s capital offers renters a healthy buffer between earnings and rent.
- Average asking rents across Canada declined 3.2% in 2024, reaching a 17-month low of $2,109/month in December. However, this follows sharp increases of 8.6% in 2023 and 12.1% in 2022.
- The data underscores the ongoing challenges for renters in cities with high housing demand and limited supply.