A growing affordability crisis is forcing nearly half of Canadian renters to make heartbreaking trade-offs just to stay housed. According to the Royal LePage 2025 Canadian Renters Report, 39% of Ontario renters are now reducing their spending on food and groceries to make ends meet.
The poll, conducted by Burson earlier this month, surveyed 1,854 renters across Canada and found that many are turning to credit cards, side hustles, and even skipping meals as rental costs outpace wages.
The True Cost of Renting in Ontario
- 22% of renters reported relying on credit card debt to cover living costs.
- 21% have taken on a second job or side hustle.
- 38% of renters are spending 31% to 50% of their net income on rent.
- 15% are spending more than 50% of their income on rent alone.
These financial pressures come despite a slight softening in rental prices. In Toronto, one-bedroom units averaged $2,302/month in May 2025- a 7.1% decrease from the previous year. Two-bedroom units dropped 10.7% year-over-year to an average of $2,933/month, according to data from Rentals.ca and Urbanation Inc.
Why Are Rent Prices Softening?
Royal LePage attributes the decline to:
- A surge in condo completions, adding more units to the market.
- Fewer international student visas and work permits, reducing rental demand.
Despite this dip, rental prices remain well above historical norms, and high demand continues in areas like downtown Toronto, where lifestyle perks and proximity to the financial district drive competition.
Renters Still Dream of Homeownership
Surprisingly, 55% of Ontario renters still hope to buy property someday:
- Many plan to purchase within 2 to 5 years, or sometime after 5+ years.
- However, 28% considered buying before renewing their lease but backed out due to factors like:
- Waiting for prices to drop (43%)
- Inability to qualify for a mortgage or waiting on rate cuts (34%)
50% of renters say their income doesn’t support buying in the neighbourhoods where they actually want to live.
Real Estate Experts Say: Don’t Wait Too Long
Royal LePage CEO Phil Soper warns against trying to “time the market.”
“If you look over the past 75 years, home prices have appreciated about five per cent per year… So, waiting at any time in Canadian history for the value of property to drop is challenging.”
Soper believes the market is approaching a “return to normalcy” in late 2025, encouraging renters to assess their personal readiness to buy rather than holding out for a major price correction.
Follow Ontario Housing Market
Stay updated on Canadian real estate trends and affordability news: Instagram @ontariohousingmarket
Sources:
- Royal LePage 2025 Canadian Renters Report
- Rentals.ca & Urbanation May 2025 Rent Report
- CP24 News Report (June 19, 2025)
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