STUDY: Income Growth Now Determines Affordability in Canada’s Rental Market, Not Rent Price or City Size

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New report reveals that despite rent price declines, Canadian renters struggle to balance housing costs and other financial obligations

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TORONTO — Rent prices have eased for renters across Vancouver and Toronto, but new data shows that lower rental payments are not enough to alleviate the burden of rising financial obligations and employment concerns across all rental markets.

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by

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, a leading rental risk intelligence platform, found that

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income growth is now the determining factor for affordability

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across Canada’s rental market, especially in secondary markets where income declines diminished any anticipated cost savings for renters.

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Vancouver and Toronto have both seen rent prices decline six per cent and five per cent year-over-year (YOY), respectively, with rent now making up only 27.7 per cent and 27.4 per cent of household income. Zooming out from the two major cities, smaller secondary markets are now feeling the affordability crunch, where income hasn’t kept pace.

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Leading this trend are Barrie, ON, Medicine Hat, AB, Greater Sudbury, ON, Winnipeg, MB, and Kelowna, BC, where renters contribute moreincome to rent than thenational average (28.1 per cent), coupled with notable income declines ranging from six to21.5 per cent.

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“As rent prices have gone down in the past year, you’d expect that this would have solved the financial pressure for renters, but rent price is only half of the equation,” says Viler Lika, founder & CEO of SingleKey. “In Barrie and Winnipeg, we’re seeing firsthand that if income doesn’t hold up, cheaper rent doesn’t make a large enough impact to improve the financial health of renters.”

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SingleKey’s report analyzed thousands of rental applications across Canada between April 1 to June 30, 2026, to determine the average Canadian renter profile, affordability gaps, and financial risk signals. Key themes and findings from the report include:

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Are major cities in Canada becoming more affordable?

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Nationally, rent prices have gone down by 2.1 per cent, with the average rent sitting at $2,051. Canada’s major cities have seen even larger declines:

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The only outlier was Halifax, with an increase of 5.5 per cent and the average rent price now $2,206.

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As a result of these declines, major cities felt the relief, with renters spending less than 28.1 per cent of their income on rent, despite being more expensive markets. Winnipeg was an exception, with renters paying close to 30 per cent of their income on monthly rental payments compared to other large cities.

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This is partly because renters in larger cities report higher incomes. A renter in Vancouver’s household income is $154,162, Toronto’s slightly lower at $149,607, and Calgary’s at $120,566, whereas Winnipeg renters earn $78,607, the lowest of Canada’s major cities.How are Canadians bringing down rental costs? Co-renting. Single renters don’t see the same rental savings as multiple-income households. Single renters in Canada spend 40 per cent of after-tax income on rent, surpassing the national average for households of 28.1 per cent.

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The Government of Canada recommends that housing costs not surpass 35 per cent to ensure renters can continue to save and allocate income toward other payments, savings, and emergencies, but this threshold is difficult to meet as a single tenant.

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“Whether renters are a dual-income family, roommates, or co-signers, sharing housing costs can be a differentiator for many renters struggling to keep pace with payments,” says Lika.

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Who is the average Canadian renter?

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According to SingleKey’s report, the median age of a renter in Canada is 33. The majority of renters (74.3 per cent) are fully employed, 27.8 per cent have pets, and 12.4 per cent have children. The national average household income is $113,970, while personal income averages $72,950.

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With lower rents and high vacancies, are rental applications more successful than before?

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At first glance, the softening rental prices and increased vacancies should signal stronger rental applications. However, other factors, like rising collections, are making homeowners and property managers hesitant to accept tenants.

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Despite rent price declines, national debt collections rose 18.4 percent YOY. Debt collections are payments to a lender that have gone unpaid for at least 90 days, including credit cards, loans, and other unpaid bills. Many regions with healthy credit scores, like Victoria and Thunder Bay (693 and 709, respectively), are showing higher collections, up 171.6% YOY and 150.5% YOY, indicating renters are having challenges meeting financial obligations.

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What rental markets carry the highest risk?

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Medicine Hat, AB stands out as high risk for missed rental payments with a lower average credit score of 656, collections at 24.1 per cent, and bankruptcies at 6.1 per cent. This is a stark contrast to Toronto, a notoriously expensive rental city, which is surprisingly marked as low risk, with higher average credit scores among renters (742), collections at five per cent, and bankruptcies at one per cent.