Just like avocado and toast, rent in Toronto is a hot topic.
Being one of Canada’s most expensive cities to rent, it may come as (surprisingly) good news to hear that on a global scale, Toronto is actually one of the best cities for renters.
According to a recent study by RENTCafé, Toronto ranks 11th when it comes to the world’s 30 best cities to rent. For their methodology, the rental website compared rent costs with the local median incomes, creating a rent-to-income ratio.
“Traditionally, housing costs exceeding 30% of the household income have been viewed as a red flag, so this is also what we adopted as our first threshold,” stated RENTCafé. “Thus, we considered the cities where the average rent was 30% or less of the local median household income to be burden-free.”
For the remainder of the list, RENTCafé divided them into two: moderately (31-50% rent to income) and severely rent-burdened cities (upwards of 51%).
Toronto made it to the list of 30% and under, missing the mark by 1%.
Some of the most rent-burdened cities include Mexico City, Manhattan, and Lagos, which all have costs that take up more than half of a household’s income each month (at 60%, 59% and 57% respectively.)
No other Canadian city made the ranking, because clearly, Toronto is one of the best places to live. Even with its generally expensive rent.
Note: All rent prices in this study represent the overall average rents or their US Dollar-equivalents
- The average cost of rent in major Canadian cities right now (MAP)
- The minimum amount you need to live alone in Toronto in your early 30s
- By neighbourhood: the average price of Toronto condos per square foot