Source: Point2Homes —
- Canadian homeowners spend 24% (or almost $300) more than renters on monthly shelter costs.
- Major Ontario cities boast the most expensive housing costs: Homeowners in 9 cities (including Toronto, Brampton and Markham) pay more than $2,000 a month.
- Oakville, Vaughan and Milton, ON, are the only cities where all residents (renters, as well as owners) spend more than $2,000 on shelter costs.
- Renters in 9 Québec cities (including Montréal and Québec City) pay less than $1,000 on housing costs; Trois-Rivières enjoys the cheapest housing costs for both homeowners ($956) and renters ($676).
- Renters and homeowners in Kelowna, BC, spend almost the same on housing, while owners in Brampton, ON, pay $676 more than renters;
- 79% of Canadian households spend less than 30% of their monthly income on housing costs. In Lévis and Saguenay, QC, about 88% do so;
- Renters who want to take on a mortgage to become homeowners in Canada need to spend almost 71% (or $857) more per month, but it’s cheaper to do so in metros like Winnipeg or Québec City;
2022 was a rollercoaster, no matter which side of the housing fence you found yourself on. As renters and owners got chewed by soaring inflation and the ongoing cost of living crisis, it made them rethink housing expenses and cut costs.
Beyond financial means, choosing whether to own or rent can be reduced to pros and cons: Renting means less responsibility, while owning is a long-term investment; Renting might mean freedom, while owning can bring stability. But, the reality is that we can’t bypass financial means, which often make the decision for us. To that end, one question remains the foundation of the rent versus own dilemma: How much can one afford in monthly housing costs?
Whether you rent or own, a monthly sum goes to utilities like electricity, heat, water and other municipal services. As per the latest Census, the key difference is that renters have monthly rent payments, whereas homeowners are responsible for property taxes, condominium fees and mortgage (where applicable). With that in mind, Point2 analyzed Canada’s 50 largest cities to determine how these cumulated housing costs affect the owners and renters living there. We also looked at the 10 largest metro areas to see what the monthly financial burden would be should a renter choose to become a homeowner with a mortgage.
Nationwide, Homeowners Spend 24% More Than Renters on Housing Costs
Yet, more than 85% of owned households spend less than 30% of their income on monthly shelter costs compared to almost 67% of renter households
