Vancouver and Toronto Lead Canada’s Rental Unaffordability Crisis, CCPA Report Reveals: Implications for North American Housing Markets
Washington, D.C. – September 6, 2025 – As housing affordability continues to dominate discussions across North America, a new report from the Canadian Centre for Policy Alternatives (CCPA) has spotlighted Vancouver and Toronto as the most unaffordable cities for renters in Canada, based on a metric known as the “rental wage.” The findings, released on September 4, 2025, underscore a deepening crisis where even full-time workers earning substantial incomes struggle to secure basic housing without financial strain. While the report focuses on Canadian markets, experts in the United States warn that similar pressures are mounting in major U.S. cities like New York, San Francisco, and Los Angeles, potentially signaling a broader continental challenge exacerbated by inflation, supply shortages, and economic inequality.
The CCPA’s annual analysis, titled “Can’t Afford the Rent: Rental Wages in Canada 2024,” calculates the hourly wage required for a full-time worker (assuming 40 hours per week and 50 weeks per year) to afford an average one- or two-bedroom apartment while spending no more than 30% of their pre-tax income on rent—a benchmark widely used by housing advocates and policymakers to define affordability. Drawing on data from the Canada Mortgage and Housing Corporation (CMHC), the report examined rental markets in over 30 Canadian cities, revealing stark disparities that place Vancouver and Toronto at the top of the unaffordability list.
Vancouver: The Pinnacle of Unaffordability
In Vancouver, the report estimates that a renter needs to earn $37.84 per hour—or approximately $78,700 annually—to afford the average one-bedroom apartment, which rents for about $1,967 per month. For a two-bedroom unit, the required wage jumps to $48.94 per hour, equating to roughly $101,800 yearly for an average rent of $2,547. These figures far exceed British Columbia’s minimum wage of $17.40 per hour, meaning even two full-time minimum-wage earners in a household would fall short of affording a modest one-bedroom without exceeding the 30% threshold.
Marc Lee, senior economist at the CCPA and lead author of the report, described Vancouver’s rental market as a “perfect storm” of high demand, limited supply, and speculative investment. “Vancouver has long been a magnet for global capital, driving up property values and rents,” Lee said in an interview. “But this report shows that the crisis is no longer just about homeownership—it’s permeating the rental sector, pushing out essential workers like teachers, nurses, and service industry employees.”
The city’s challenges are compounded by its geography and urban planning constraints. Nestled between mountains and the Pacific Ocean, Vancouver faces natural barriers to expansion, while zoning laws and community opposition have slowed new development. Recent data from CMHC indicates that Vancouver’s vacancy rate hovers around 1%, intensifying competition and allowing landlords to command premium prices. Immigrants and young professionals, drawn to the city’s tech and film industries, further strain the market, with many resorting to shared accommodations or commuting from more affordable suburbs.
Toronto: A Close Second in the Affordability Crunch
Toronto follows closely behind, requiring a rental wage of $37.50 per hour ($78,000 annually) for a one-bedroom apartment averaging $1,875 monthly, and $47.50 per hour ($98,800 yearly) for a two-bedroom at $2,375. As Canada’s largest city and financial hub, Toronto’s rental woes mirror Vancouver’s, driven by population growth, corporate investments, and a post-pandemic surge in demand.
The CCPA report highlights how Toronto’s unaffordability disproportionately affects low- and middle-income households. For minimum-wage workers earning $17.20 per hour in Ontario, affording even a one-bedroom would consume over 50% of their income, leading to what experts call “housing precarity”—a state where renters face constant eviction risks, overcrowding, or reliance on food banks to make ends meet. “We’re seeing families doubling up in units designed for singles, or young adults delaying life milestones like marriage or starting families because they can’t afford to move out,” noted Ricardo Tranjan, a senior researcher at the CCPA.
Toronto’s market has also been influenced by international factors, including an influx of foreign students and temporary workers, which has boosted demand for rentals near universities and downtown cores. A 2024 CMHC survey found that average rents in the Greater Toronto Area rose 8% year-over-year, outpacing wage growth and inflation.
Broader Trends Across Canada and Comparisons to the U.S.
While Vancouver and Toronto claim the top spots, the CCPA report paints a grim picture nationwide. Victoria, British Columbia, ranks third, requiring $34.50 per hour for a one-bedroom, followed by cities like Halifax and Ottawa. Notably, the report finds that no Canadian city offers affordable one-bedroom rentals for single minimum-wage earners, and even in more affordable locales like Winnipeg or Saskatoon, two-bedroom units push families to the brink.
From a U.S. perspective, these findings resonate amid similar housing struggles. In San Francisco, for instance, the median one-bedroom rent exceeds $3,000, requiring an annual income of over $120,000 to stay under the 30% threshold—far higher than Vancouver or Toronto. However, experts like Edward Glaeser, a Harvard economist specializing in urban economics, argue that Canada’s crisis is amplified by stricter land-use regulations and slower permitting processes compared to many U.S. states. “Both countries face supply shortages, but Canada’s federal structure gives provinces more control, often leading to NIMBYism that blocks new builds,” Glaeser told reporters.
Cross-border migration adds another layer. With U.S. tech firms expanding into Vancouver and Toronto, American workers relocating northwards contribute to demand, while Canadians eye more affordable U.S. markets like Seattle or Buffalo. A recent Reddit thread on r/canadahousing discussed how Vancouver’s rents now rival New York’s, prompting some to consider emigrating south.
Policy Responses and Expert Recommendations
The CCPA report calls for urgent policy interventions, including rent controls, increased social housing investment, and incentives for purpose-built rentals. Federal Housing Minister Sean Fraser acknowledged the findings, stating that the Liberal government’s $10-billion National Housing Strategy aims to build 100,000 affordable units by 2030, though critics argue it’s insufficient.
In British Columbia, Premier David Eby has implemented vacancy taxes and restrictions on short-term rentals like Airbnb to free up units. Ontario’s Doug Ford government has focused on streamlining approvals for new developments, but progress remains slow.
U.S. observers see parallels in Biden administration initiatives, such as the Housing Supply Action Plan, which seeks to add 2 million units nationwide. “Canada’s report is a wake-up call for us too,” said Alicia Mazzara, a senior research associate at the Center on Budget and Policy Priorities in Washington. “With inflation easing but rents still climbing, we need transborder collaboration on housing policy.”
Human Stories Behind the Statistics
Beyond numbers, the unaffordability crisis has real human costs. In Vancouver, single mother Elena Ramirez, a retail worker earning $20 per hour, shares a cramped one-bedroom with her two children, spending 45% of her income on rent. “We’re one emergency away from eviction,” she shared in a CCPA case study. In Toronto, recent graduate Ahmed Khan commutes two hours daily from Mississauga to avoid $2,000 monthly rents downtown.
Social services are strained, with food bank usage up 20% in both cities, linked directly to housing costs. Mental health advocates report rising anxiety and depression among renters facing instability.
Looking Forward: A Continental Challenge
As North America’s population grows and urbanization accelerates, the CCPA’s findings highlight the need for systemic change. With climate migration and economic shifts on the horizon, experts predict that without bold action, unaffordability could spread further, affecting productivity and social cohesion.
For now, Vancouver and Toronto’s top rankings serve as a stark reminder: in the race for livable cities, affordability must not be left behind. As U.S. cities monitor these developments, the report may inspire renewed efforts to prevent a similar fate south of the border.
Sources: CTV News, Times Colonist, YouTube (CCPA Interview), Toronto Star, Reddit (r/canadahousing), Facebook, X (CityNewsTO), Canadian Mortgage Trends, X (CityNewsVAN), Reddit (r/toronto), Yahoo Finance, CCPA Report PDF, Kennel Vandebinnenvoort.nl, Vancouver Is Awesome, BNN Bloomberg, CCPA Website, Yahoo Finance (Productivity), Toronto Star (Teck Resources).