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There are many types of housing, from rental apartments to condos to detached homes. Each offers unique features that appeal to people at different stages of life. However, with a range of housing options, you can select the type that best meets your needs, budget, location, and personal preferences while adapting to life in Canada.
Before beginning your search for rental housing in Canada, knowing the different types of houses to rent or buy is helpful. Deciding which type of home is right for you can be difficult. For example, a rental apartment is ideal if you are just settling in Canada.
A condominium is ideal for people who have a busy lifestyle and want to avoid the costly property maintenance of a home. Or, if you have a young family, you may prefer a house with a backyard for your children. Renting any of these homes in Canada rather than committing to homeownership can give you greater flexibility.
You can find various types of apartments in larger buildings or complexes. Apartments typically offer a kitchen, bathroom, and living space. However, you can also find studio apartments with a combined living and sleeping area.
Studio apartments appeal to single people who don’t require a great deal of space and want to save on accommodation costs. Renters can also find one- or two-bedroom apartments that offer more space. Renting an apartment offers greater flexibility, which is important for newcomers. It’s easier to break a lease if you need to move to a new neighbourhood or city.
Renting an apartment is attractive to newcomers when first arriving in Canada. It’s more affordable than buying a home and offers more flexibility than homeownership.
Apartments seem similar to condos, but there are key differences between apartments and condos.
Once you understand the different types of rental housing in Canada, the next step is choosing the right neighbourhood. For example, this guide to affordable London, Ontario neighbourhoods for renting shows how housing types and rent prices vary by area.
Most basement apartments have a private entrance, kitchen, bathroom, living room, one or two bedrooms, and access to laundry.
In Canada, you can often find below-ground apartments for rent in detached or semi-detached homes. Some homeowners rent out basement space for long- or short-term rentals while they live in the main home.
A benefit of basement apartments is that they are usually less expensive than other housing types. If you are on a tight budget, it’s a great option, especially if you prefer downtown living over the suburbs. Staying within your rental budget is important. Read more in our guide, How to Save Money on Rent in Canada: 10 Tips for Newcomers.
Condominiums (or condos) are a form of ownership that can apply to almost all types of housing. While condominiums are generally large complexes, other types of properties, for example, townhouses, may also have a condo ownership model. You own the unit, or “condo”, but you do not own the land it is built on or any common space outside your unit.
Owning a condo is often more affordable than buying a detached home, and a top reason why condos appeal to buyers. In addition, you have access to on-site amenities such as a swimming pool, fitness room, party room, and guest suites.
You pay monthly condo fees to maintain indoor and outdoor common areas shared by the owners, including parking areas, elevators, entrances, and recreational facilities. Many condos also have a concierge and provide 24-hour security. Monthly fees can vary and are usually based on the square footage of your unit. You pay condo fees in addition to your mortgage payments. If you rent a condo, these fees are usually included in your monthly rent.
This type of housing appeals to people who want a secure, residential setting without the required responsibilities of maintaining a home and yard. Condos are popular in Canada’s urban housing market because of the limited supply of single-family homes.
A single-detached house stands alone and tends to be the most expensive home type due to the land costs. However, detached homes usually provide more space than most apartments or condos and will often have a backyard, parking, and patio space. Because detached homes offer more space and privacy, they appeal to growing families or multi-generational families. When you purchase a house in Canada, you own the home and the land it’s on.
While some newcomers arrive in Canada ready to buy a home, this involves paying the mortgage, property taxes, and utilities such as electricity, gas, and water. As a homeowner, you’re responsible for the care and maintenance of your property and must follow local bylaws (municipal rules and regulations that vary across Canada). Examples of bylaws include residential property standards to ensure proper home maintenance.
As a homeowner, you can renovate the inside and outside of the house. But, you must follow local bylaws and apply for building permits to renovate the structure of the home.
Upon deciding to purchase a home, it’s smart to save money for an emergency fund to deal with unexpected or costly repairs.
You can also rent a detached home. Renting a detached home can provide more space without spending time or money on necessary repairs. The homeowner will incur the home repair costs. The cost to rent or buy a detached home is based on local real estate markets, which vary across Canada, and the size.
A semi-detached home is joined to another on one side, but not attached to any other dwelling or structure. Owners are only responsible for the care and upkeep of their side, just like a single-detached house. When you own a semi-detached home, you own your side of the property, including the land it is on.
Semi-detached houses appeal to people who want to own their own house as well as the land it is on. Semi-detached houses are usually less expensive than fully detached houses, although, like all real estate, this depends on the area.
If you’re buying this type of housing, it is usually more affordable than a single-detached home. However, it may offer less privacy. Whether you want to rent or buy a home, it’s smart to find an experienced real estate agent to guide you through the process.
The Canadian housing market is also seeing a growing interest in townhouses. This housing type is a unit attached to other housing units in a row. In each unit, you share a wall on either side with the people beside you. Often, especially in cities, there may also be a smaller unit above each townhouse, so there could also be someone living above or below you. Townhouses (sometimes called row houses) are usually two or three levels tall, and each level is called a storey.
With a townhouse, you may have a private backyard, or ground-level or rooftop patio. Townhouses appeal to people who want to be involved in maintaining their home and property.
This type of housing is becoming more popular, particularly among first-time homebuyers seeking more affordable options in the face of rising home prices.
A duplex or triplex is a building that is divided into multiple units. Like semi-detached houses, each household has its separate entrance and is responsible for the care of the unit. Typically, you would buy the entire property and rent a unit to help offset your mortgage payments. Types of homes that are ‘duplexed’ or divided into two or more separate living units may be detached homes, semi-detached, or row houses.
In Canada, it’s common for homeowners to rent out rooms within their homes and share accommodation. Homesharing provides an affordable housing option for newcomers, a great living experience, and an opportunity to make new friends.
When considering your housing options in Canada, consider the different features that each option offers. With different types of housing, you can select the one that best fits your budget, lifestyle, and preferences.
With rising rental costs, finding affordable housing in Canada can be challenging. For newcomers, this can be a frustrating obstacle to overcome, especially in your first few weeks and months in a new country. In this article, we outline practical solutions to help you stay within your affordability range. With patience and persistence, you will discover options that can help you save money for accommodation in Canada without compromising comfort and quality.
Facing a declining supply of rental housing, especially in major cities like Toronto and Vancouver, costs for rental accommodation are rising at unprecedented rates. According to recent rental statistics from Rentals.ca, average asking rents reached a record high of $2,117 in August 2023. This makes it difficult to find and budget for high rental costs. However, there are still affordable housing options available across the country.
Affordability is based on the proportion of your income that you pay for housing. An affordable home will require a smaller proportion of income, while an unaffordable one is larger, for example, greater than 30% of your before-tax household income.
Affordable housing is a broad term that includes housing that the private, public, and non-profit sectors provide. It also includes all forms of housing such as rental, ownership, and temporary and permanent housing.
According to Aled ab lorwerth, Deputy Chief Economist, Canada Mortgage and Housing Corporation, Canada needs to dramatically increase the supply of housing to restore affordability by 2030.
In the meantime, the Canadian government is making efforts to address the issue of affordable housing. They have implemented various programs and initiatives to help individuals and families find affordable accommodation.
Renting is a popular option for individuals and families seeking affordable housing in Canada. In fact, Statistics Canada reveals that about one-third of Canadian households rent their residence. Keeping in mind that rental prices vary depending on the type of housing, location, size, and condition of the property, here are some tips to find affordable rental options:
Consider searching for rental properties in areas that are undergoing revitalization. These areas may offer lower rent prices compared to more established neighbourhoods.
Incentives, especially like utilities included in your monthly rent can lower your housing costs by a large amount.
These are examples of rental listings in cities across Canada that cover utilities such as heat, water, and electricity (using the “Utilities” filter.)
Another option to consider is sharing a rental property with others. This can often lead to lower rent prices compared to traditional rental properties. And, for newcomers, home-sharing can be a great way to ease financial pressures, expand your social network, and add to your quality of life!
Searching for your first home in Canada? Join this exclusive session for key insights on housing market conditions, affordable options, and renting without credit history. Tailored for newcomers settling in the next six months, register now for valuable tips and a free guide!
REGISTER FOR THE WEBINARAffordability in major cities where the vacancy rates fall below 2 percent, like Toronto and Vancouver, can be out of reach for many individuals. And, for newcomers trying to achieve financial stability in Canada, securing affordable housing is even more important.
However, there are still options if you want to live in these cities without breaking the bank.
One option to consider is micro-apartments or micro-condos. These smaller living spaces are becoming increasingly popular in major cities as a way to provide affordable housing options. While they may have a smaller footprint, they often come with amenities and innovative design features to maximize space.
Another option to explore is purpose-built rental buildings. These buildings are specifically designed for rental purposes and often offer more affordable rent prices compared to privately owned properties. Professional property management companies usually manage purpose-built rental buildings ensuring quality and affordability.
Finding affordable housing can be a challenging and time-consuming process. However, with the right strategies and resources, you can increase your chances of securing an affordable home. Here are some tips to help you in your search:
Facing a shortage of affordable housing, it’s important to start your search well in advance. Give yourself plenty of time to explore different neighbourhoods and visit properties. Another challenge you may face is that you’re likely competing with many others in the market for affordable housing. In this case, choice properties may be off the market quickly.
In cities with tight rental markets with low vacancy rates, you will be competing with many others in the market for affordable housing. In this case, you need to ‘sell yourself’ as the best possible candidate for the landlord to select.
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There are several rental websites and online platforms to help you search for rental properties that meet your affordability price range. And, you can filter your search by price range for greater search ease.
Reach out to friends, family, and colleagues who may be able to recommend affordable housing options. People in your network may know of future vacancies that are within your budget and are not yet listed on rental websites.
Flexibility is key when searching for affordable housing. Consider compromising on certain amenities or locations to find a more affordable option. Keep an open mind and be willing to explore different possibilities, including basement apartments.
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If you’re feeling overwhelmed or unsure about the process, consider seeking assistance from professionals such as real estate agents who can guide and support you throughout your search.
Smaller cities that surround major cities may offer more affordable housing and provide easy access to amenities and public transit. For example, you can explore smaller cities within the Greater Toronto Area (GTA) such as:
With the rise of remote work and flexible schedules, living outside the city center is becoming a viable option for many individuals and families.
While the challenges of finding affordable housing in Canada may seem daunting, solutions and options are available. Remember, finding affordable housing requires persistence and patience. Don’t be discouraged if it takes time to find the perfect fit. By using the available resources, you can increase your chances of finding suitable housing that is within your budget.