Simmering real estate market making affordable housing harder to find
A new report by the left-leaning Canadian Centre for Policy Alternatives (CCPA) analysed rental data from 36 major cities in the country to determine what is known as the rental wage: the hourly wage a full-time worker would need to make to be able to afford an average two-bedroom apartment without spending more than 30 per cent of their income.
“The goal of the report was to highlight that it’s not just costly for people buying housing, but it is also costly for people renting housing in Canada,” said David Macdonald, senior economist at CCPA an author of the study.
“Once you are over that 30 per cent threshold, you are likely spending more than you should be on rent.”
Nationally, the rental wage for a two-bedroom unit — the most common type of apartment in Canada — sat at $22.40, well above any provincial minimum wage.
But that number also varied widely between cities.
Vancouver, Toronto and Victoria topped the list, with their rental wage sitting at $35 an hour, $34 an hour and $28 an hour respectively.