Rent is eating up half of young Canadians’ paycheques
Sky-high rent in Canada is affecting everyone, but the situation is especially difficult for young renters, according to a new survey.
A new report by Rentals.ca reveals that half of young Canadians are having to live on half of their paycheques as rent eats up over half of their income.
“Rentals.ca’s latest Summer 2025 Renter Preference Survey paints a stark picture of the Canadian rental market, with affordability challenges dominating renter concerns while lifestyle-driven features remain in high demand,” reads the report.
Five hundred renters across the country took part in the survey, and 34 per cent of them admitted to spending more than half of their after-tax income on rent; only 22 per cent of Canadians spend 30 per cent or less of their income on rent.
Canadians are spending a considerable chunk of their income on rent. According to the Canada Mortgage and Housing Corporation, housing is considered unaffordable when 30 per cent of their household income goes towards shelter costs — and that’s before taxes.
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Although rent takes up over 50 per cent of their income, 66 per cent of renters refuse to get a roommate. The high cost of housing in Canada means that one in three renters says they’re “severely rent-burdened.”
But the situation is worse for younger renters.
Compared to other age groups, Canadians between 18 and 24 have a relatively lower budget, ranging from $1,000 to $1,499. Despite this, 49 per cent of them spend more than half of their after-tax income on rent.
“Younger renters are more likely to be in this high-spend group, even though they report the lowest budgets,” reads the report.
Rentals.ca
However, budgets get slightly bigger for Canadians aged 25 to 34. Respondents in this age group said they’re willing to spend between $1,500 and $1,999. In all, 40 per cent of this age group spend over half of their income on rent.
The situation improves slightly for Canadians in the 35 to 54 age group. With a budget of $1,500 to $1,999, only 29 per cent spend over 50 per cent of their income on rent. However, housing gets slightly more expensive for older Canadians aged 55 and over. Despite a similar budget, 35 per cent of them are spending more than half of their income on rent.
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To attract tenants, some landlords offer move-in incentives such as free rent or utility discounts. Canadians aged 35 to 54 said that these incentives were “very important,” while in comparison, it’s only “somewhat important” for 40 per cent of young renters aged 18 to 24.
Although rent in Canada is already really expensive, many are willing to stretch their budget for certain amenities and conveniences.
In fact, 57 per cent said they’re willing to pay more for in-unit laundry, 44 per cent are willing to go over their budget for air conditioning, and for 43 per cent of Canadians, parking is a must. In addition, 34 per cent of Canadians are willing to pay for private outdoor space, and 31 per cent don’t mind the extra cost to move into units with pet-friendly policies.
But even moving comes with its challenges.
“Renters spending more than half their income are more likely to face longer searches, dissatisfaction with listings, and consider moving cities,” reads the report.
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