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Written By
Corinna Frattini
Oct 6, 2023
•Housing
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!
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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.
WRITTEN BY
Corinna Frattini
Senior Editor, Prepare for Canada
Corinna Frattini is the Senior Editor and Content Director for Prepare for Canada. She contributes articles to help newcomers achieve their goals in key areas related to living, working, and settling in Canada. With an extensive background in human resources and leadership development, her articles focus on what Canadian employers seek and how newcomers can continue their careers in Canada.
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