Are you trying to decide whether you should rent or buy a house?
With soaring inflation and rising living costs, renting can be difficult, and owning a home may seem like a pipe dream.
It’s even more difficult if you live in a major city like Toronto or Vancouver, where average rents make the national high look cheap.
Fortunately, online real estate marketplace Point2Homes compared how much homeowners and renters spend on housing costs, as well as which cities are the cheapest and most expensive to rent or own a home.
So, if you’re debating whether to rent or buy, and wondering which cities won’t break the bank, keep reading.
The cost of owning versus renting
According to the most recent Canadian census, homeowners spend 24% more on housing costs than renters.
However, compared to nearly 67% of renters, more than 85% of homeowners spend less than 30% of their income on monthly housing costs.
While the number of owners (9,955,975) is nearly double that of renters (4,953,840), the report found that the country’s homeownership rate is declining, according to the most recent Census.
“The gap is closing as renter households grew three times faster over the last decade — proof that home ownership is becoming increasingly out of reach,” the report states.
“Historically high prices and market volatility keep an increasing number of Canadians from owning their own homes.”
It goes on to say that monthly housing costs are also a factor in more people renting, with renters spending $289 less on housing expenses than homeowners.
The cheapest and most expensive Canadian cities to rent or own a home
Now that you’ve seen the statistics, which cities have affordable rent and which will crush your dreams of ever owning a home?
According to Point2Homes, Quebec has the top four cheapest cities for renting or owning a home.
Trois-Rivières, Quebec, ranks first in both renting and owning. Renters pay $676 per month in housing costs, while owners pay $956.
Consider the city with the highest housing costs. Oakville, Ontario, is at the top of the list, with renters paying $2,146 per month and owners spending $2,384 per month on housing costs.
“On a monthly basis, Oakville residents pay three times as much as Trois-Rivières residents,” according to the report.
Point2Homes discovered that cities in Ontario and British Columbia have some of the highest housing costs in the country.
Four cities in the Greater Toronto Area are the most expensive, with renters and homeowners spending more than $2,200 per month on housing costs.
Surprisingly, Vancouver ranked lower on the list, with renters paying $1,660 and homeowners paying $2,084.