According to a recent study, Vancouver and Toronto were ranked as the most unaffordable cities for renters in Canada in the previous year.
The study conducted by the Canadian Centre for Policy Alternatives highlighted Vancouver and Toronto as the top cities on the list due to the concept of rental wage. This refers to the hourly wage required to cover rent expenses, assuming a 40-hour workweek and allocating 30% of income towards housing costs.
In Vancouver, the report indicated that an individual needed to earn $37.84 per hour to afford the average one-bedroom apartment in 2024. For a two-bedroom unit, this amount increased to $48.94.
Similarly, in Toronto, the study suggested that a wage of $37.66 per hour was necessary for a one-bedroom unit, while a two-bedroom unit required $44.80 per hour in Canada’s largest city the previous year.
Out of the 62 cities examined in the report, only eight, with six located in Quebec, offered the possibility for individuals to rent an average one-bedroom unit at minimum wage while working full-time.
The report also highlighted that approximately one-third of households in Canada are comprised of renters, emphasizing the significance of affordable housing.