Toronto ranked second most unaffordable city in Canada

According to the annual Viral Signs report, as of 2014, Toronto’s affordability rating has risen once again to 6.2. Not only is this the worst ranking the city has received to date, it’s twice as high as what is deemed affordable (3.0 ranking or less). Moreover, Toronto is the second most expensive market in Canada, following Vancouver. On an international scale, Toronto has ranked 15^th least affordable market.

For renters, the market is becoming increasingly out of reach as rent continues to climb year over year. In 2013, Toronto had the second highest average monthly rent in the GTA of $1,134. The only other region that exceeded Toronto was Halton, with an average monthly rent of $1,142.

The average rent of a two-bedroom apartment in Toronto has increased from $1,161 in 2011 to $1,225 in 2013. Additionally, the rent of a one-bedroom apartment in the GTA accounted for 40.6 per cent of the average wages of fully employed youth (aged 15-24), an increase of nearly 4 per cent since 2009. This raises some red flags as, in order for housing to be deemed affordable, households should spend no more than 30 per cent of their household income on housing. However, renters are willing to pay incredibly high monthly costs as it is a cheaper option than buying. For example, it costs an average of $665 less a month to rent a condo unit than to purchase it.

Although, 2013 was not a good year in terms of housing, there were several areas in which Toronto is showing significant improvements, one of which is Transit. Toronto has shown a steady increase in transit ridership with 25 million more trips over the past two years. Although, when it comes to transit, Toronto still lags behind other large cities in Canada, the city has acknowledged its importance. As a result, there are ongoing debates and projects underway to improve both the cycling infrastructure and transit system. Some projects include, the remodeling of Union station and Metrolinx’s regional transit plan, “The Big Move.”