V ancouver and Toronto renters require an annual income of $78,000 or more to afford reasonable rent, according to the Canadian Centre for Policy Alternatives (CCPA)
In a recent report by the Canadian Press, published on September 4, 2025, it was revealed that the rental burden continues to be a significant issue in many Canadian cities, with Toronto and Vancouver standing out as particular hotspots.
Even in Toronto, rents still exceed the recommended 30% threshold for median-income households. The report by the Canadian Centre for Policy Alternatives (CCPA) states that the average rent for a one-bedroom apartment in Toronto and Vancouver is considered affordable if a renter earns over $78,000 per year. This is more than twice the minimum wage in both cities.
In Toronto, the asking rent for a two-bedroom apartment decreased by 5.6% to $2,690 in the first quarter of the year compared to the previous year. However, this is still a high figure, and a worker earning minimum wage would need to work approximately 75 hours per week to comfortably pay for such an apartment, assuming no other expenses.
Similarly, in Vancouver, the asking rent for a two-bedroom apartment decreased by almost 8% to $3,170 in the same period. This means that a minimum wage earner in Vancouver would need to work approximately 65 hours per week to afford it.
The report also highlights the risk of displacement faced by renters in Toronto and Vancouver due to renovictions or "demovictions." This practice involves landlords evicting tenants to renovate properties and then re-rent them at higher rates.
The CCPA report calls for federal and provincial governments to prioritize housing affordability. David Macdonald, senior economist at the Canadian Centre for Policy Alternatives, emphasized the need for housing affordability to remain a policy priority.
Interestingly, rents are coming down somewhat in big hubs that generally attract the most immigrants. However, the rental burden is still higher than pre-pandemic levels in all cities except Toronto.
The report does not provide specific information on the amount someone needs to earn to have their rent be affordable in cities other than Vancouver and Toronto. However, it was noted that only eight out of the 62 cities analyzed in the report had affordable one-bedroom rents for full-time minimum wage workers.
In conclusion, the report underscores the ongoing challenge of housing affordability in many Canadian cities. While there are some signs of improvement, particularly in cities that attract a high number of immigrants, the issue remains a significant concern, particularly for minimum wage earners in Toronto and Vancouver. The report underscores the need for continued policy focus and action to address this issue.
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