New Canadian renters survey has depressing implications

Earlier this month, Rentals.ca published a survey on the average needs of Canadian renters, and the results have somber implications, to say the least. 

Around 34 percent, or one-third, of all Canadian renters spend more than half of their income on rent, which could put their financial future at risk. 

When breaking down the data by age groups, further red flags about the rental market are noticeable. Forty-nine percent of youth aged 18 to 24 are spending more than half of their income on rent. Behind them, the 25 to 34-year-old age group is trailing, with 40 percent spending half or more of their income on rental units. 

The survey continues further with more negative statistics. Fifty-seven percent of all Canadian renters are considering moving from their home city to find units with better pricing. Furthermore, 53 percent are dissatisfied with rental listings they have seen, with 46 percent of those surveyed searching for six months or more for a satisfactory unit. 

Experts are worried about how this will affect the future finances of Canadians, especially youth, as the results of the survey show. With youth dedicating the majority of their income towards covering rent, many are concerned about how they will be able to save for desired achievements like home ownership and retirement in the future. 

Giacomo Ladas, a spokesperson for Rentals.ca, told The Globe and Mail said the norm has always been that half of your income should be spent on housing, and not renting, where you don’t even own the property. “By this survey, it becomes really clear that that’s almost impossible, especially when we’ve seen rental prices skyrocket in recent years,” he said. 

The Future?

Courtesy of Rentals.ca

According to Statistics Canada, the homeownership rate has declined everywhere in Canada (except the Northwest Territories) from 2011 to 2021, with the average in BC falling from 70 percent to 67 percent. 

However, it isn’t all doom and gloom. Another recent survey shows that BC and Ontario’s rent markets have posted significant rent decreases, with the trend expected to continue slowly growing. Vancouver, in particular, has seen rents decline around six percent in recent years, while cities like Edmonton have seen an increase of about 22 percent. 

Regardless, the results of Rentals.ca’s surveys have sparked discussion over the future of Canadian rental markets and especially what it means for Canadian youth.