CCPA finds renters must earn over $78,000 to afford a one-bedroom in Canada's largest cities
Earning nearly $38 an hour is now required to afford the average one-bedroom apartment in Vancouver or Toronto—more than double the minimum wage—according to the latest Canadian Centre for Policy Alternatives (CCPA) rental wage update.
The CCPA’s 2024 report reveals that renters in Canada’s largest cities face an affordability gap that continues to widen, with the annual income needed for a one-bedroom in Vancouver or Toronto exceeding $78,000.
This threshold is calculated based on the standard that housing costs should not exceed 30 per cent of pre-tax income, a benchmark widely used to assess affordability.
As per the CCPA, only eight out of 62 Canadian cities analyzed offer one-bedroom rents that are affordable for full-time minimum wage workers, with six of those cities located in Quebec.
In Vancouver, Toronto, and Calgary, the rental wage for a one-bedroom is more than twice the minimum wage, making it virtually impossible for minimum wage earners to secure housing without additional income sources or shared accommodation.
The report highlights that renters are disproportionately represented on the lower rungs of the income ladder and are vulnerable to displacement through renovictions or demovictions.
If forced to move, renters face even higher market rates for vacant units, with asking rents requiring hourly earnings of $46 in Vancouver and $42 in Toronto, based on the most recent Canada Mortgage and Housing Corporation (CMHC) rental market survey.
While recent data from RBC indicates that rents in Toronto and Vancouver have declined—down 5.6 per cent and nearly eight per cent respectively for two-bedroom apartments—affordability remains a challenge.
The rental burden is still higher than pre-pandemic levels in all cities except Toronto, and even there, rents continue to exceed the recommended 30 per cent threshold for median-income households.
The CCPA notes that increases in minimum wage have not kept pace with rising rents in most provinces, exacerbating the affordability gap.
In British Columbia, for example, the minimum wage rose from $12.65 in 2018 to $17.40 in 2024, yet the province remains the most unaffordable for minimum wage earners, who must work three weeks full-time just to cover rent.
Alberta, meanwhile, has seen the greatest deterioration, with stagnant minimum wages and a 30 per cent increase in rents since 2018.
The CCPA concludes that federal and provincial governments must keep housing affordability at the forefront of policy discussions, emphasizing that too many households are forced to spend more than a reasonable share of their income on rent, compromising their ability to pay for other necessities.
The report also points to the need for targeted policies, such as city-specific minimum wages, rent controls, and the expansion of non-market housing, to address the persistent affordability gap.
