Overview
It’s never been more challenging to find an affordable apartment in Ontario, due to high rents and economic challenges. In this article, we’ll explore the housing crisis, rent affordability guidelines, and strategies to deal with the crisis. We’ll look at what it takes to afford an apartment in today’s market, given everything we know about the current state of the economy.
The Housing Crisis in Ontario
It’s no secret that Ontario is dealing with a serious housing crisis. The following factors play a major role:
- Low/stagnant incomes. The median individual income in Toronto was $39,200 per year according to the 2021 Census (source: Statistics Canada). This means half the people earn less than that, and half earn more than that. Given the high rents and cost of living in Toronto, the median income is insufficient to cover basic living expenses. Incomes have not kept up with inflation, and the provincial minimum wage of $17.20 per hour is not considered a living wage by the Ontario Living Wage Network, far from it.
- High rents and home prices. The average rent for a one-bedroom apartment in Toronto may exceed $2,000 per month, which would constitute more than 50% of a median income. This would leave individuals without sufficient funds to cover other expenses. The average home price in Toronto exceeds $1M, which is far out of reach for those earning low to modest incomes and/or lacking generational wealth.
- Rapid population growth. While the Liberal government has made changes to its immigration policy, population growth in recent years has far outpaced the available housing stock, compounding affordability and accessibility issues.
- Red tape and high fees. Developers find it difficult to build new housing in a timely and cost-effective manner due to excessive bureaucracy and high taxes and fees, which seem to penalize new construction. This prevents new homes from being built and partly alleviating the crisis.
In the next section, we’ll review average rents in several major Ontario cities. Then we’ll consider common rent affordability guidelines based on income and review some possible solutions and adaptive strategies.
Average Rents by City
Now that we’ve reviewed the factors that contribute to the housing crisis, let’s look at the average rents for one-bedroom and two-bedroom apartments in five major Ontario cities.
| City | Average Rent: 1-Bedroom Apartment | Average Rent: 2-Bedroom Apartment |
| Toronto | $2,041 | $2,530 |
| Ottawa | $1,822 | $2,238 |
| Hamilton | $1,596 | $2,056 |
| Brampton | $1,527 | $1,815 |
| Windsor | $1,873 | $2,276 |
In the next section, we’ll look at general affordability guidelines based on income level. Where do you stand?
Rent Affordability Guidelines
Historically, the recommendation has been to spend no more than 30% of your pre-tax monthly income on rent. However, given the high cost of housing, it may no longer be feasible for many Ontarians.
Here are some examples of affordable rent, based on income and the 30% guideline:
| Income | Affordable Rent |
| $30,000 per year | $750 per month |
| $40,000 per year | $1,000 per month |
| $50,000 per year | $1,250 per month |
| $60,000 per year | $1,500 per month |
| $70,000 per year | $1,750 per month |
| $80,000 per year | $2,000 per month |
| $90,000 per year | $2,250 per month |
| $100,000 per year | $2,500 per month |
This list may give you some idea of what amount of rent would be considered affordable, given your income. In the next section, we’ll look at how Ontarians cope with the housing prices.
How Ontarians Adapt
Ontarians have found a range of ways to adapt to the housing crisis, including the following:
- Moving to a more affordable area. Toronto is the least affordable city in Ontario, so it may make sense to move to a smaller or more affordable city.
- Getting roommates. Roommates/housemates allow you to split the housing costs, making housing more affordable. The drawback is that you will be co-residing with family members, friends, or strangers, which may limit your enjoyment and privacy.
- Obtaining income supports and housing supports. Ontarians may be able to obtain various income and housing supports, including the following: the Canada-Ontario Housing Benefit (COHB); rent-geared-to-income housing; Ontario Works; the Ontario Disability Support Program (ODSP); social housing and public housing, etc.
Adopting some of the above strategies may allow you to cover your housing expenses successfully, despite the ongoing crisis in Ontario.
The Bottom Line: Can You Find an Affordable Apartment in Ontario?
If you earn a sufficient income, move to a more affordable area, and/or obtain income/housing supports, it may be possible. Many Ontarians may resort to living with their family members or roommates to cover expenses.
Why Installment Loans
Online installment loans may offer quick funds to help cover urgent expenses. Featuring a simple and quick online application without a credit check, online installment loans may offer a lifeline to Ontarians who are struggling with the cost-of-living and housing crises.
Final Thoughts
The housing crisis has made it difficult for many Ontarians to afford an apartment comfortably. The median income in many Ontario cities barely covers rent, compounding cost-of-living issues. If you need help covering expenses, apply for an installment loan via Friendly Lender. We don’t check credit scores or credit reports during the simple and quick online application process. Funds may be direct-deposited into your bank account as soon as the next day.
