A new survey shows that almost half of young Canadians are putting the majority of their income toward rent, highlighting the affordability crisis facing renters across the country.
Rent Costs Exceeding Income Benchmarks
For decades, financial advisers have recommended keeping housing costs around one-third of household income. But according to a 2025 survey by Rentals.ca, that rule of thumb is becoming nearly impossible for many Canadians.
- 49% of renters aged 18–24 say they spend more than half of their after-tax income on rent.
- 34% of renters of all ages report the same.
- 57% of renters overall are considering moving to a new city to escape high rental costs.
“The idea that you should spend no more than one-third of your income on rent just doesn’t hold up anymore,” said Giacomo Ladas, a spokesperson for Rentals.ca. “Rental prices have skyrocketed in recent years while wages have not kept pace.”
The Struggle to Find Affordable Rentals
The survey also revealed that 46% of renters spending more than half their income on housing searched for six months or more before finding a new place.
While rent prices in some regions have slowed or declined slightly in 2025, the market hasn’t softened enough for tenants to feel relief. Edmonton, once considered an affordable city, has seen average rents increase 27% in just three years.
The Impact on Savings and Retirement
Financial experts warn that high housing costs are leaving little room for long-term savings.
“There’s very little wiggle room to save for retirement when housing eats up half your income,” said Andrew Dobson, a financial planner with Objective Financial Partners. He added that inflation in food, transportation, and other essentials only makes saving harder.
A 2024 RBC report by economist Carrie Freestone found renters are falling further behind homeowners in wealth-building. Since 2010, homeowners’ net worth increased 9–13 times disposable income, while renters’ net worth only rose 3–3.5 times.
Cracks in the Rental Market
Despite the financial strain on tenants, some landlords are also struggling. Dobson noted that in Canada’s largest markets, certain landlords cannot find renters at the prices they need to break even. In one case, he advised a client to sell a rental property instead of leasing it at a loss.
With property owners under pressure and tenants hesitant to pay record-high rents, experts say there is potential for more price declines in the months ahead, but affordability remains a major issue in 2025.
Key Takeaway
With nearly half of young Canadians spending over 50% of their income on rent, affordability is at a breaking point. While market cracks suggest possible rent declines, experts caution that housing costs remain a serious challenge for saving, investing, and long-term financial stability.
Source: Half of young Canadians spending more than 50% of earnings on rent – The Globe and Mail
Canada Housing Market 
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