By Sammy Hudes

Royal LePage’s 2025 Canadian renters report, which incorporates outcomes from a survey carried out by Burson, discovered 37% of renters in Canada spend between 31% and 50% of their web earnings on month-to-month lease prices.

The survey of greater than 1,800 renters in early June indicated that 15% of respondents had been spending greater than half of their earnings on lease, whereas 37% had been spending 30% or much less.

Rents have eased for eight consecutive months, however stay effectively above historic norms, in accordance with the report.

It stated rents are 5.7% increased nationally than they had been two years in the past and 12.6% increased than three years in the past. Over the previous half decade, common asking rents in Canada have risen by a mean of 4.1% yearly, outpacing wage development.

On account of these affordability challenges, four-in-10 respondents stated they’ve decreased spending on groceries and meals, whereas three-in-10 have decreased contributions to financial savings or retirement.

“Rental markets have a tendency to reply extra slowly than resale housing to modifications within the financial system. Dwelling costs have softened in lots of areas via the primary half of the yr, and we’re now seeing that aid start to circulate via to the rental sector,” stated Royal LePage president and CEO Phil Soper in a press launch.

“But, for these aspiring to personal, this can be the second to take a tougher take a look at what’s attainable. With costs down in lots of markets, charges easing, and wages rising sooner than the price of housing, the trail to possession — lengthy a distant beacon for a lot of — might now be coming into clearer focus.”

The report stated greater than half of all renters surveyed point out they plan to purchase a property sooner or later, however simply 16% stated they plan to take action inside the subsequent two years. 

Twenty-eight per cent of renters stated they thought-about buying a property earlier than signing or renewing their present rental settlement whereas 40% are ready for residence costs to say no and 29% are holding out for additional rate of interest cuts.

Soper stated the info reveals many tenants “are motivated to get a foot on the property ladder.” However he warned that ready for the right window of alternative might be a mistake.

“In Canada’s least inexpensive cities, entry-level alternatives have improved considerably, with residence costs off final yr’s peaks, incomes up and borrowing prices trending decrease,” he stated.

“Nonetheless, many renters … are selecting to attend. Historical past suggests they might be dissatisfied. Over the previous 75 years, Canadian residence values have risen roughly 5 per cent yearly, working persistently forward of inflation.”

Not all renters are ready on the sidelines to purchase, nonetheless. Practically one-third of renters stated they don’t plan to buy a house in any respect, in accordance with the report.

Of these respondents, 53% stated they don’t imagine their earnings will permit them to purchase a property within the neighbourhood they need to stay in and 40% stated that renting stays extra inexpensive.

One other 40% stated they don’t need to tackle the tasks of sustaining a property. 

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affordability Editor’s pick housing affordability Phil Soper real estate market rental market renters Royal LePage royal lepage report sammy hudes The Canadian Press

Final modified: June 19, 2025