Overview
Is it possible to find an affordable apartment in Ontario, given the ongoing housing crisis? In this article, we’ll take a closer look at housing affordability in Ontario and what it would take to rent your own apartment.
The Housing Crisis in Ontario
The housing crisis in Ontario is the result of several different factors. Here are some reasons why finding affordable housing is so difficult right now:
- High rents and home prices. The average rent for a one-bedroom apartment in Ontario is $1,910 per month. The average home price in Ontario exceeds $800,000.
- Low and stagnant incomes. The median individual employment income in Ontario in 2021 was measured at just $44,800 per year (source: Stats Canada), which is not enough to cover the average rent or purchase a house comfortably.
- Precarious employment. It’s increasingly hard to get a well-paid, secure job in Ontario. The growth of precarious employment, part-time jobs, and jobs without benefits has left many Ontarians struggling to cover expenses. Many Ontarians lack confidence in their job security and justifiably so.
In the next section, we’ll look at the average rents in several Ontario cities. This will give you a bird’s-eye view of the rental market.
Average Rents
The average rents will differ from city to city. Let’s look at five of the most populated cities in Ontario:
| City | 1-Bedroom Rent | 2-Bedroom Rent |
| Toronto | $2,043 per month | $2,531 per month |
| Ottawa | $1,822 per month | $2,238 per month |
| Hamilton | $1,631 per month | $1,939 per month |
| Windsor | $1,532 per month | $1,822 per month |
| Brampton | $1,994 per month | $2,327 per month |
While many Ontario cities are somewhat cheaper than Toronto, rents remain high everywhere in the province. This creates significant difficulties for Ontarians who are earning low to modest incomes or have unstable debt situations. Moving to a more affordable area may provide some relief, but it typically must be combined with other strategies, such as earning a higher income or stabilizing one’s debt situation.
In the next section, we’ll review the common affordability guidelines.
Affordability Guidelines
The recommended guideline is to spend no more than 30% of your gross monthly income on rent.
However, some experts contend that the guideline is no longer realistic for many Ontarians. Some suggest extending the percentage to 35%.
Based on the 30% guideline, the following rent would be considered affordable at different levels of income:
| Income | 30% 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 gives you some idea of the amount of rent you could realistically afford, given your income, assuming a stable debt situation.
How Ontarians Adapt
Many Ontarians struggle to find affordable housing. They may adopt any of the following strategies to find housing they can afford:
| Strategy | Description |
| Moving to a cheaper area | If you’re living in an expensive area like Toronto, moving to a more affordable area may help. |
| Getting roommates | Living with roommates/housemates can significantly lower expenses. However, it comes with trade-offs e.g. personal conflicts, incompatible roommates, etc. |
| Income supports and subsidized housing | Ontario Works (OW) Ontario Disability Support Program (ODSP) Canada Child Benefit GST/HST credit Ontario Student Assistance Program (OSAP) Canada-Ontario Housing Benefit (COHB) Rent-geared-to-income housing Social housing initiatives |
The above strategies may help some Ontarians find affordable housing.
Final Thoughts
The ongoing housing crisis makes it challenging to find an affordable apartment in Ontario. However, some Ontarians are finding creative strategies to adapt to the housing crisis.
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