Overview
Is it even possible to find an affordable apartment in Ontario nowadays? In this article, we’ll explore the housing crisis in Ontario, average rents in various Ontario cities, and what it would take to afford an apartment in this province.
The Housing Crisis in Ontario
The housing crisis in Ontario is a complicated phenomenon and the result of several interrelated factors. Here are a few factors that negatively affect housing affordability in Ontario:
- High rents. Toronto, which is Ontario’s largest city and capital, is also the least affordable city in the province and the second most expensive Canadian city, after Vancouver. The average rent in Toronto exceeds $2,000 per month, and many Ontario cities are not far off.
- Incomes have not kept up with inflation. The median income in Toronto was measured at just $39,200 per year in 2021 (source: Stats Canada), which is not far off from the provincial median. This level of income is not sufficient to cover rent comfortably almost anywhere in the province.
- Supply-and-demand mismatch. Fast population growth has far exceeded the housing supply. Housing has been chronically underbuilt for decades in Canada, which made the crisis inevitable in the event of significant population growth.
- The financialization of housing. Large corporations buy up housing in order artificially to drive up prices and treat housing as an investment to maximize profits, rather than a human right.
In the next section, we’ll review the average rents in several Ontario cities.
Average Rents by City
The average rent varies by city. While Toronto remains the most expensive city in Ontario, other cities also feature high rents.
| City | 1-Bedroom Apartment Rent | 2-Bedroom Apartment Rent |
| Toronto | $2,041 per month | $2,530 per month |
| Ottawa | $1,822 per month | $2,238 per month |
| Hamilton | $1,631 per month | $1,938 per month |
| Brampton | $2,009 per month | $2,334 per month |
| Mississauga | $2,029 per month | $2,364 per month |
In the next section, we’ll review the common affordability guidelines and the amount of rent you can afford based on income.
Affordability Guidelines
The most common recommendation is to spend 30% or less of your monthly pre-tax income on rent.
Based on this guideline, let’s look at how much rent you can realistically afford at each income level:
| 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 |
In the next section, we’ll look at the strategies Ontarians use to cope with the housing crisis.
How Ontarians Cope with the Housing Crisis
There are various strategies Ontarians can and have adopted to deal with the housing crisis:
| Coping Strategy | Description |
| Moving to a more affordable city | Many Ontario cities are cheaper than Toronto. This includes:
· London (~21% cheaper) · Hamilton (~18-22% cheaper) · Ottawa (~14-16% cheaper) · Windsor (~22-25% cheaper) · Kingston (~18-20% cheaper) |
| Living with roommates | Living with roommates can sometimes cut the price of rent in half or even more, particularly in cities like Toronto. |
| Income supports | · Canada-Ontario Housing Benefit
· Ontario Works · Ontario Disability Support Program (ODSP) |
| Housing supports | · Rent-Geared-to-Income Housing
· Subsidized housing · Toronto Rent Bank |
In the next section, we’ll look at installment loans and how they can help.
How Can Installment Loans Help?
An installment loan may help you cover immediate expenses. Repaid over installments, installment loans offer a simple and quick online application process, without a credit check. Individuals with low credit scores may still qualify for installment loans.
Final Thoughts
It’s difficult to afford rent in Ontario, even on a median income. The housing crisis is part of the larger cost-of-living crisis. If you need help covering expenses, consider applying for a personal loan via OntarioCASH. We don’t check credit scores or credit reports during the simple and quick online application process. Funds may be e-transferred to your bank account in as little as 24 hours!
