Many renters spend over half of their income on housing in the Greater Toronto Area: survey

Many Greater Toronto Area residents are spending over half of their income on rent.

Rising rents, persistent rent increases and mismatched budgets continue to shape renter behaviour, the new Winter 2025 Renter Feedback survey from Rentals.ca found.

Based on responses from 503 renters nationwide, the survey revealed that affordability pressures persist across Canada’s rental market.

Despite declining rents — a drop of 3.1 per cent year-over-year in November to $2,074 in Canada — rents are still 3.2 per cent higher than three years ago. 

And many Canadians are feeling the pinch.

More than six in ten renters (62 per cent) say over 30 per cent of their net income goes toward rent, while one-third report spending more than half of their income on housing, the survey found.

Most financial experts recommend spending 30 – 35 per cent of gross monthly income on rent, but in more expensive cities, this is difficult.

In Toronto, 70 per cent of renters report spending more than 30 per cent of their income on rent, compared with 60 per cent in other markets, the survey found.

“Ongoing rent increases are compounding affordability pressures,” Rentals.ca said in the survey report.

Nearly two-thirds of renters (63 per cent) report their rent has increased since the summer, the survey found

High rent prices dominated the rental search experience for respondents. When asked about their biggest challenge, 69 per cent of renters cited high rent prices, far surpassing concerns about supply, listing quality or scams. This pattern appears consistently across regions, Rentals.ca said.

Younger renters have more affordability challenges.

Among renters aged 25 to 34, 43 per cent report spending more than half of their net income on rent, while 37 per cent of renters aged 35 to 54 report a similar level of strain.

Budget constraints further illustrate the gap between renter expectations and market realities.

Seven in ten renters say their budget for their next rental is under $2,000, even as asking rents in many markets remain above that level. Renters targeting more expensive cities such as Toronto and Vancouver report higher budget expectations than those searching in other markets, reflecting the limited availability of lower-priced rental options.

See the full Winter 2025 Renter Feedback Survey here.