Tracking the rental crisis and rent-to-income burdens across Canada
Average monthly rent with rent-to-income ratio indicator. High-performance static visualization.
This chart tracks the average monthly rent for a 2-bedroom unit and the corresponding **Rent-to-Income Ratio**. This ratio measures what percentage of a median household's gross income is consumed by housing costs alone.
The Savings Trap: When rent exceeds 35% of income, it becomes statistically difficult for a household to save for a down payment, creating a permanent "renter class."
Supply Scarcity: Record-low vacancy rates (often sub-1% in major hubs) allow landlords to raise prices regardless of local wage increases.
Inflationary Pressure: Rent is a primary driver of CPI inflation. As rents rise, the Bank of Canada is forced to keep interest rates higher, which further impacts mortgage affordability.
| City | Avg 2BR Rent | Rent-to-Income % |
|---|---|---|
| Vancouver | $2,950/mo | 38.5% |
| Toronto | $2,900/mo | 34.1% |
| Iqaluit | $2,500/mo | 29.4% |
| Victoria | $2,350/mo | 33.2% |
| Ottawa | $2,250/mo | 27.6% |
| Kelowna | $2,200/mo | 33% |
| Halifax | $2,200/mo | 33.8% |
| Hamilton | $2,100/mo | 27.4% |
| Calgary | $2,100/mo | 24% |
| Kitchener-Waterloo | $2,050/mo | 25.6% |
| Yellowknife | $1,950/mo | 21.7% |
| London | $1,850/mo | 27.1% |
| Montreal | $1,850/mo | 27.8% |
| Whitehorse | $1,750/mo | 21.9% |
| Edmonton | $1,650/mo | 19.4% |
| Charlottetown | $1,650/mo | 27.5% |
| Moncton | $1,550/mo | 25.8% |
| Winnipeg | $1,500/mo | 21.2% |
| Quebec City | $1,450/mo | 22.9% |
| Saskatoon | $1,450/mo | 18.9% |
| Regina | $1,350/mo | 18% |
| Saint John | $1,350/mo | 23.8% |
| St. John's | $1,300/mo | 19% |
Post-2022, rental markets across Canada experienced a "double whammy." First, higher interest rates forced potential buyers to stay in the rental market longer. Second, record immigration levels surged demand for a supply that was already historically low.
In cities like Vancouver and Toronto, we now see a normalization of **40%+ rent-to-income ratios**. This means that after taxes and rent, a median household has very little left for transportation, food, and long-term investment.
For decades, Canadian developers focused on luxury condos rather than purpose-built rentals. This shift forced renters into the "secondary market" (private condos rented out by individuals), which often lacks the long-term security of institutional rental buildings.
Restoring rental affordability requires a massive shift in construction - away from speculative investment units and toward high-density, missing-middle rental housing.
Roughly 33% of Canadians are renters. In major cities, this number increases to nearly 50%.
While provinces like Ontario have rent controls, they often only apply to buildings occupied before 2018, leading to a "two-tier" rental market.
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