Overview
Given the ongoing housing crisis in Ontario, is it possible to find an affordable apartment? While Toronto remains unaffordable for almost everyone, smaller towns and cities may offer somewhat lower rents. In this article, we’ll explore the housing crisis in Ontario and what it would take to afford an apartment in this province.
The Housing Crisis in Ontario
There is a widely acknowledged housing crisis in Ontario. Here are several factors that contribute to the crisis:
- The lack of well-paid and secure jobs. Half of Ontario renters earn under $40,000 per year, which limits their rental options. Based on the 30% guideline, someone making $40,000 per year should spend no more than $1,000 per month on rent. However, as we all know, the rent for a typical one-bedroom apartment in Ontario far exceeds $1,000 per month.
- High rents and home prices. The average rent for a one-bedroom apartment province-wide exceeds $1,900 per month (source: Apartments.com). It is often cheaper in smaller cities e.g. Hamilton and Kingston. However, the trade-off is the potential longer commute to one’s workplace, as many jobs are concentrated in major urban centres. The average home price province-wide significantly exceeds $800,000 (source: Nesto.ca), which is out of reach for most people earning the median income, as well as individuals who may lack generational wealth.
- Low vacancy rates. As of the first quarter of 2025, the provincial vacancy rate for apartments is approximately 2.7% (source: CMHC). While the vacancy rates have been rising due to new rental completions and fewer international students, they are still relatively low.
In the next section, we’ll zoom in on the rental market in several Ontario cities.
Average Rent in Different Cities
The average rent for an apartment is going to vary significantly by city. While rents have risen in all parts of Ontario, some locations remain more affordable than others. Let’s look at some of the most populated cities in Ontario and their rental markets in 2025:
- Toronto. The average rent for a one-bedroom apartment in Toronto is currently $2,000+ per month. The average rent for a two-bedroom apartment in Toronto is currently $2,531 per month.
- Ottawa. The average rent for a one-bedroom apartment in Ottawa is currently about $1,685 per month. The average rent for a two-bedroom apartment in Ottawa is currently $2,572 per month.
- Hamilton. The average rent for a one-bedroom apartment in Hamilton is currently about $1,539 per month. The average rent for a two-bedroom apartment in Hamilton is currently $2,056 per month.
- Markham. The average rent for a one-bedroom apartment in Markham is currently about $2,011 per month. The average rent for a two-bedroom apartment in Markham is currently $2,569 per month.
- Windsor. The average rent for a one-bedroom apartment in Windsor currently exceeds $1,500 per month. The average rent for a two-bedroom apartment in Windsor is currently $1,815 per month.
Given the high rents in most Ontario cities, we need to look at relevant affordability guidelines. In other words, how much rent can you afford, given your income?
Affordability Guidelines
While the recommendation has always been to spend <30% of your gross monthly income on rent, it may no longer be realistic. Nowadays, 30-35% may be a more appropriate guideline.
For example, 30% of $40,000 per year amounts to approximately $1,000 per month that you could realistically afford in rent. Thirty percent of $60,000 per year amounts to approximately $1,500 per month that you could afford in rent. Thirty percent of $80,000 per year amounts to $2,000 per month that you could afford to pay for rent. And so on.
Currently, about 40% of Ontario renters are considered rent-burdened, which means they spend more than 30% of their income on rent and utilities. The other 60% manage to stay within the recommended guideline, which may assist them with their financial goals.
Spending an inordinate percentage of your income on rent may prevent you from saving, building an emergency fund, and/or covering other living expenses. This is why it’s important not to overspend on rent.
How People Are Dealing with the Housing Crisis
Given the current uncontrollable circumstances, people are forced to adopt various creative strategies. Here are a few strategies people may use to deal with the housing crisis:
- Moving to a more affordable area. If you cannot afford rent in Toronto, you may consider moving to a comparatively more affordable city e.g. Hamilton or Kingston. While the rents may be slightly lower in those cities, job access remains a concern.
- Living with roommates. Living with roommates can significantly decrease one’s housing costs. The obvious trade-off is that you’ll be sharing your living space with other people, possibly even strangers, and that means significant daily compromises.
- Income supports/subsidized housing. Low-income Ontarians may sometimes obtain income supports and/or access subsidized housing. Some examples of supports include rent-geared-to-income housing, in which tenants pay 30% of their income toward rent; the Canada-Ontario Housing Benefit; co-op housing, non-profits, and below-market units; Ontario Works; Ontario Disability Support Program (ODSP); and more.
In the next section, we’ll look at the larger cost-of-living crisis afflicting Ontarians.
The Larger Cost-of-Living Crisis
Beyond the housing crisis, there exists a larger cost-of-living crisis in Ontario. The cost of groceries and gasoline has soared. The COVID-19 pandemic and geopolitical conflicts played a role in global supply chain disruptions, which spurred inflation. While the rate of inflation has slowed somewhat, the prices have not gone down. They are simply continuing to increase at a slightly lower rate.
These pressures further complicate the picture for Ontarians.
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Final Thoughts
In this article, we explored the housing crisis in Ontario and what it would take to afford an apartment in this province. It will not come as a surprise that finding an affordable apartment has become extremely challenging, due to a combination of adverse factors. Many Ontarians are employing creative strategies to afford housing. As usual, the younger generations are the most affected, as many older generations purchased homes before the massive surge in prices – generational luck, if you will.
This is just one aspect of a much larger cost-of-living crisis. Have unexpected expenses? Apply for an installment loan via Crediteck. We don’t check credit scores or credit reports during the simple and quick application process, which takes place 100% online. Funds may be deposited in as little as 24 hours.
