Sky-high wages needed to rent a one-bedroom unit in the Vancouver area

A recent rent report shed light on how much a Vancouver renter needs to earn to comfortably afford a one-bedroom unit.

The report comes from Zoocasa, which has based its findings on the 30 per cent rule, suggesting that your monthly rent costs should not exceed 30 per cent of your gross monthly income.

Zoocasa’s report paints a grim picture of rental affordability in the Metro Vancouver region, despite rates having decreased over the past two years. Zoocasa’s findings are based on the most recent Rentals.ca rent report.

According to the Canadian Centre for Policy Alternatives (CCPA), “In Canada, we have typically used a threshold of paying rent less than 30 per cent of gross or pre-tax income as the benchmark of affordability.”

“For example, a person earning $50,000 per year should be spending no more than $15,000 per year (50,000 x 30 per cent), or $1,250 per month, in rent for their situation to be considered affordable. The higher one’s income, of course, the more options at higher rents are affordable,” the CCPA adds.

Zoocasa points out that the disparity between what residents earn and what they pay for rent is most pronounced in British Columbia.

“The province raised its minimum wage to $17.85 per hour, the highest in Canada, but it hasn’t been enough to keep pace with its extremely high housing costs. In North Vancouver, a one-bedroom apartment averages $2,570 per month, meaning a renter would need to earn nearly $96,400 per year (or about $46.42 per hour) to meet the 30 percent affordability rule,” Zoocasa notes.

“That’s a staggering 177 per cent higher than the province’s minimum wage.”

Zoocasa

In September, the average one-bedroom unit in Vancouver was $2,501. Zoocasa says that Vancouver renters require an hourly wage of $48.10 to afford that, “while Burnaby and Coquitlam are only slightly behind at $43.77 and $42.44 per hour, respectively.”

“The cost of housing continues to rise faster than earnings, leaving a single income earner paying well over a third of their income (sometimes more than half) in order to rent a one-bedroom apartment,” Zoocasa adds.

“Until then, Canada’s wage increases will continue to look good on paper but offer little relief in reality. A raise that helps pay for a latte or two is still insufficient to cover essentials like food, clothing, shelter, transportation, childcare, and saving for the future.”

For individuals making minimum wage, a rental situation like this might be the only option available.

Do you fall within the 30 per cent rule, or is it hard to keep up?