Posthaste: Renters are spending a scary amount on housing

Canadian renters are facing increasing challenges when it comes to paying rent, with the average rent in Canada sitting at $2,200 per month. Vancouver takes the top spot as the most expensive city for renters, with an average monthly rent of $3,095. This means that renters across the country are spending a significant portion of their income on housing, with Toronto renters dedicating 41.1 per cent of their salaries to rent.

Despite the high cost of rent, there is some relief for renters as rents for condos and apartments have been falling year over year. In fact, July marked the 10th consecutive month of rent decreases in Canada. However, this drop in rent prices has not translated into financial stability for renters, as Equifax Canada reports that non-mortgage holders are twice as likely to miss a credit payment compared to those with a mortgage.

On a positive note, renters may still qualify for a mortgage, as the average credit score among renters is 694, which is above the 680 threshold needed for approval at many major banks. Renters in Toronto and Vancouver have even higher credit scores, at 729 and 730 respectively, well above the mortgage approval threshold.

Looking ahead, it appears that rent prices will continue to decline, with Rentals.ca reporting a 3.6 per cent year-over-year decrease in July. Despite this trend, asking prices for rent remain 11.1 per cent higher than they were three years ago.

Overall, the challenges faced by renters in Canada highlight the need for affordable housing solutions and financial support. With the cost of living continuing to rise, it’s crucial for policymakers and stakeholders to address the growing divide between mortgage and non-mortgage consumers to ensure financial stability for all Canadians.