A new report is sounding the alarm on unaffordable rent in Toronto, pointing out that despite a softening of prices in the rental market, one- and two-bedroom apartments remain out of reach for many workers.
The report, Making Rent: The CCPA’s rental wage update 2024, was released Thursday by the Canadian Centre for Policy Alternatives. It looks at the “rental wage”—the hourly wage needed to afford rent while working a standard 40-hour week and spending 30 per cent of income on housing—for one- and two-bedroom units in 62 Canadian cities.
It found that Toronto and Vancouver top the list when it comes to unaffordable rental housing.
Someone working full time would need to make almost $38 an hour in order to afford a one-bedroom apartment in those cities. That works out to an annual salary of around $78,000.
“Those making less would need to work an extra job, spend a larger share of their income on housing or get a roommate,” the report states.
According to the Toronto Regional Real Estate Board, the average rent for a one-bedroom apartment in Toronto in the second quarter of 2025 was $2,326, down 5.1 per cent year-over-year. That amounts to an annual cost of $27,912.
Ontario’s minimum wage currently sits at $17.20 per hour and is set to rise to $17.60 per hour on Oct. 1. At the current rate, that amounts to a salary of around $33,000 annually.
“For those earning minimum wage, it is virtually impossible to afford housing on their own,” the report states. “In Vancouver, Toronto and Calgary, the rental wage for one-bedrooms is more than double the minimum wage.”
While the problem is most acutely felt in those cities, the authors note that rent affordability is a “Canada-wide problem.” Of the 62 cities examined in the report, just eight are places where someone could afford a one-bedroom apartment while working full time at minimum wage.
Quebec is the most affordable province, according to the report, with six of the most affordable cities located there.
The report pegs Toronto’s rental wage for vacant or unoccupied units even higher – at $41.73 per hour and $51.73 per hour for one- and two-bedroom units, respectively.
Some reason for optimism
While the report paints a grim picture of rental affordability, the authors do find some reason for optimism in the short term.
“Canadian rental markets are currently undergoing a shift, with vacancy rates rising somewhat in major cities,” the report states. “In part this reflects greatly diminished immigration numbers and much lower population growth. In addition, after many years of promoting new rental housing construction at federal and provincial levels, new supply is becoming more widely available.”
They predict there will be large numbers of recently completed condo units ending up in the rental market in 2025 and 2026 as a result of many investors walking away from pre-sale units where costs and interest rates have gone up.
Still, they say the problem will persist long-term and wage increases should be a key part of the solution.
“Our principal finding remains: there is an affordability gap in almost all Canadian cities, and it is particularly acute for those who earn minimum wage,” the authors state. “Our research reinforces the conclusion that minimum wage increases are a key dimension of affordability. Because of the variation within provinces, minimum wage policies could allow for cities to have higher minimum wages better linked to the cost of housing.”
They acknowledge that implementing minimum wages of $30-$40 per hour would be “challenging” for provinces but say that there are a range of other solutions as well.
Those solutions should include tougher protections for renters, more non-market and publicly owned housing and keeping affordable rental buildings out of the hands of Real Estate Investment Trusts (REITs), the report says.
Governments should also remain focused on affordability policies such as rent control, the authors say.
“Federal and provincial governments need to keep housing affordability on the front burner, even as trade and security take up more policy space,” the report says. “Too many households have to spend more than a reasonable share of their income on rent, compromising their ability to pay for food, transportation and other necessities.”
Are you struggling to find an affordable apartment in the city? Are you considering leaving Toronto due to the high cost of rent?
CTV News Toronto wants to hear from you. Email us at torontonews@bellmedia.ca with your name, general location and phone number in case we want to follow up. Your comments may be used in a CTV News story.
