If you ask any Canadian millennial if they think Toronto's unaffordable, chances are they’ll say yes. Toronto is, of course, a great place to live for many reasons. It’s a hub of culture, entertainment and opportunity, but anyone who lives in the city knows that all of this comes at a steep price.
According to a new report by Toronto Foundation, the average condo in the city rents for $2,235 per month. In 2008, the monthly average was just under $1,483. This means that the typical worker in Toronto now needs to earn almost $70,000 per year to afford a one-bedroom apartment in the city.
So, how much does the average Torontonian make? The median household income is $65,829 but the average person in Toronto makes $4,507 less than a typical Canadian and is spending way more of their income on rent.
The graph below shows the average median household incomes in the GTA.
Toronto Foundation has deemed it "the working-age poverty capital of Canada". Toronto has higher poverty rates for children and seniors than several other Canada cities.
Here's a comparison of low-income rates among working-age adults in Canadian cities.
“In 2017, of major Canadian cities, Toronto had the second-highest rate of poverty for children, the highest for working-age adults, and the second-highest for seniors... For working-age adults, Toronto has become the place most likely for them to be living in poverty,” Toronto Foundation states in their report.
Last year, renting in the city reached an all-time high when one-bedroom rentals in Toronto hit an average monthly cost of $2,200. Urbanation reported that the average price of condo rentals in Toronto shot up by 7.6%, bringing the average rental cost up to $2,385/month. The rental market will likely continue to tighten as the demand for housing increases.