Despite rent prices dipping slightly over the past several months, many Canadian renters are still drowning in housing costs. A new report by Royal LePage paints a picture of a market where affordability remains elusive—and hope for home ownership is being put on hold by a growing number of people.
Let’s be honest: even with eight months of rent decreases, the average tenant isn’t seeing relief. The report highlights that 15% of renters are spending more than half of their net income on rent. That’s not sustainable. Add to that the 37% who are allocating 31–50% of their take-home pay toward rent, and it becomes clear that rental housing in Canada isn’t just unaffordable—it’s suffocating.
Yes, rent prices are down this year. But zoom out a bit and you’ll see the bigger problem. Compared to two years ago, rents have increased by 5.7%. Compared to three years ago, they’re up 12.6%. Even over a five-year average, we’re looking at 4.1% annual growth. That’s well ahead of wage increases for many, especially younger Canadians and those working in service sectors.
The result? Canadians are making painful trade-offs just to keep a roof over their heads. Forty percent are cutting back on food and groceries. Thirty percent are saving less—or not at all. And one in five are racking up credit card debt or picking up a second job to make ends meet. That’s not a lifestyle; it’s survival mode.
And yet, despite all of this, home ownership still feels out of reach for many. More than half of the surveyed renters said they hope to buy one day, but only 16% plan to do so in the next two years. The reasons are familiar: high prices, steep interest rates, economic uncertainty. For many, it seems smarter to wait and see.
But here’s the catch—waiting may not pay off. In fact, it could make things worse.
Royal LePage CEO Phil Soper points out something worth remembering: in Canada, home prices have historically risen by around 5% annually over the last 75 years. That means even with current dips in the market, the long-term trend is upward. And while mortgage rates are high now, they’re starting to inch downward. Combine that with modest improvements in entry-level affordability in some of Canada’s priciest cities, and now might be as good a time as any to start seriously planning for ownership.
The reality is that waiting for a “perfect” moment in the housing market is like waiting for a unicorn. It may never come. If people hold off too long, they could miss out on windows of opportunity that may not open again.
Still, not everyone wants to own. Nearly a third of renters don’t plan to ever buy a home. For some, it’s a question of finances—they simply can’t afford to buy where they want to live. For others, it’s a conscious choice: renting offers more flexibility and fewer responsibilities. And that’s valid.
But we shouldn’t confuse choice with necessity. When people are forced to give up healthy meals or take on crushing debt just to pay rent, the system isn’t working. Housing—whether rented or owned—shouldn’t require personal sacrifice on this scale.
The bottom line? Canada’s rental affordability crisis is far from over, and if meaningful policy changes don’t happen soon, more people will be priced out of both renting and owning. In the meantime, renters who are dreaming of home ownership may want to reconsider their wait-and-see strategy—because the clock is ticking, and history suggests the market won’t wait forever.
