Do You Still Believe Renting Will Lead to Owning a Home?
Although there is no specific data on this topic, most immigrants to Canada understand the significance of home ownership. Long before arriving in Canada, many have already started browsing popular home-selling websites, excitedly exploring neighbourhoods and homes, and even deciding which room will belong to whom. This desire is easy to understand; the motivation to pack up and leave familiar surroundings for a new country often includes the dream of owning a home. It is seen as the ultimate goal of beginning a new life, while renting is viewed as a temporary situation. People believe that eventually, everyone will progress from renting to owning. Right?
Wrong! Welcome to 2025. The post-COVID, post-Trump tariff era has significantly altered the landscape. At least, that is the narrative presented by our elected officials and the media we consume.
A recent study conducted by the rental risk intelligence program SingleKey analysed thousands of Canadian rental applications completed between July 1 and September 30. It found that Canadians are renting for more extended periods, and for many, home ownership now feels like an impossible dream.
This survey does not just include people living paycheck to paycheck. An increasing number of renters are in higher income brackets, with many earning well above $100,000, leading to an average household income of $142,346.
In Toronto, the average renter spends about 31 per cent of their income on rent. The average monthly rent for all housing types is $2,581. According to the City of Toronto, the average rent for a one-bedroom apartment is $1,715, while a two-bedroom apartment costs approximately $1,985.
Additionally, the credit scores of renters in Toronto have reportedly declined, with a 2.9 per cent drop from 2024 to 2025, bringing the average credit score to 735 this year. However, compared to the rest of Canada, Torontonians still have higher credit scores and lower rates of collections and bankruptcies. In fact, Toronto and Halifax have the most financially stable renters, despite Toronto being one of Canada’s most expensive rental markets.
Toronto’s Renter Profile: Many Toronto renters are older than in the past and have started families or adopted pets, even though they don’t own a home. While the average renter in Canada is 32, the average renter in Toronto is two years older. Renting is increasingly not viewed as a stepping stone to home ownership; the high cost of living across Canada means that many people are renting for longer and often rely on dual household incomes.
The report concludes that “the idea that renters are young, mobile, and just passing through no longer holds.” Renting has become a long-term reality for many Canadians in their 30s and 40s—often with children, careers, and no clear path to home ownership.
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