Six-figure income to afford a 1 bedroom apartment?
When was the last time that you looked to see what the rental market prices are like?
The latest rent report from PadMapper shows that Toronto is still the most expensive city to live in. That’s not surprising to anyone that’s been paying attention to Canadian rent markets. What is, however, is how much it actually costs to live there.
The median price of 1 bedroom apartments in Toronto rose by 2.8% to $2,200. Going by the suggested rent to income ratio of 30% or less, you’d need to be making nearly six figures. At $26,400 annually, your pre-tax income would have to be $88,000.
So how are Torontonians affording to live in a city with prices so high? According to the 2016 census, the median household income in Toronto was only $65,829, which is pretty low compared to Ontario’s median household income of $74,287.
Hamilton’s median rent increased by 4.5% for 1-bedroom apartments and 1.5% for 2-bedrooms. But even at $1,150 for a 1-bedroom or $1,370 for a 2-bedroom, that is still insanely affordable compared to Toronto.
It’s no wonder people are moving from the GTA in search of apartments and homes at half the price!