A recent study reveals that rent is unaffordable for minimum-wage workers in the majority of Canadian cities.

“The rental wage is considerably higher than minimum wage in every single province. Even in the three provinces with the highest minimum wage in Canada—B.C., Ontario, and Alberta—there’s a shortfall in what minimum-wage workers earn and the rent they have to pay, on average,” Said the Report released by the Canadian Centre for Policy Alternatives.

A dismal portrayal of rental affordability across numerous Canadian cities, including Toronto, emerges from a recent report on the cost of renting in the country. According to the study conducted by the Canadian Centre for Policy Alternatives, the financial situation is so challenging that even two full-time minimum-wage workers cannot reasonably afford a one-bedroom apartment.

The report introduces the concept of a “rental wage,” representing the hourly wage necessary to cover rent expenses while working a standard 40-hour week and allocating no more than 30 percent of one’s gross income to housing costs. The findings underscore the severe strain on housing affordability, shedding light on the significant hurdles faced by renters across the country.

With the exception of three cities situated in Quebec, the rental wage required to afford a one-bedroom rental exceeds the minimum wage in all other cities across the country.

“Vancouver and Toronto are the worst culprits: even two full-time minimum wage workers cannot afford a one-bedroom unit without spending more than 30 per cent of their combined income on housing,” according to the report.

According to the report, in Toronto, the rental wage necessary to afford a one-bedroom apartment is $33.62, which surpasses the province’s minimum wage of $15.50 by more than double. For a two-bedroom apartment in the same city, the rental wage is even higher, amounting to $40.03.

“The discrepancy between the rental wage and the minimum wage is such that, in most Canadian cities, minimum-wage earners are extremely unlikely to escape core housing need. They are likely spending too much on rent, living in units that are too small, or, in many cases, both,” Said the report.

In contrast to its 2018 report, the Canadian Centre for Policy Alternatives discovered that “rents have become even less affordable for minimum-wage workers.”

“Even in Québec, where rents are comparatively more affordable, the trend is worrisome,”

“This goes back to supply and demand and last year… purpose built rentals, we set a record with about 15,000 in purpose built rentals,”

During a news conference on Tuesday, when questioned about the report, Ontario Premier Doug Ford highlighted the measures his government has taken to tackle the affordability crisis. He emphasized that they have implemented strategies such as capping the province’s rent increase at 2.4 percent for this year and 2.5 percent for the following year.

“The findings presented in this report should not be interpreted simply as a supply and demand problem,” the report continues.

“The mess in which we find ourselves is due to bosses keeping wages down with help from provincial governments that set the minimum wage and federal governments that control monetary policy.”