A significant shift in Canada's housing landscape is underway as new data confirms that dual-income renting has become the standard for many Canadians in their 30s and 40s, often with established careers and families but no clear path to homeownership.
Toronto's Rental Reality: High Earners, Higher Costs
According to SingleKey's Q3 2025 Rental Intelligence Report, the average Toronto renter now faces substantial financial pressures despite relatively strong earnings. The average household income for Toronto renters stands at $142,000, significantly higher than the city's overall average household income of approximately $120,000.
However, these strong earnings are being outpaced by soaring rental costs. Toronto's average monthly rent has reached $2,581, compared to $2,159 across Ontario and $2,063 nationally. The data reveals that Toronto households typically spend 30.6% of their income on rent, a figure that climbs to 34.2% when including debt payments.
National Rental Affordability Crisis Deepens
The national picture shows even greater strain, with renters spending over 38.6% of their income on rent and debt repayments. This places most Canadian renters well above the 30% affordability threshold, indicating increased financial vulnerability for tenants and greater risk exposure for landlords.
Viler Lika, founder and CEO of SingleKey, notes the changing demographic reality: "The a-ha moment for us was when we noticed the average household income for the Toronto renter is now $142,000. That's one of the highest household incomes in Canada."
Changing Renter Profile: Older, Settled, With Families
The report reveals a fundamental shift in who rents in Canada. The median age of a Canadian renter is now 32, with 11.7% of renters having children. In Toronto, the median renter age is 34, with nearly 6% having kids.
"It used to be that renting was a steppingstone towards homeownership," Lika explains. "Renting is now a long-term reality for many Canadians in their 30s and 40s – often with kids, careers and no clear path to homeownership."
Despite financial pressures, Toronto renters maintain relatively strong financial health with an average credit score of 735, among the highest nationwide. Only 4.3% have collections on record, though credit scores declined 2.9% from 2024 to 2025, indicating growing financial strain.
The report analyzed thousands of rental applications across Canada between July 1 and September 30, 2025, providing comprehensive insights into the evolving rental market and the financial challenges facing Canadian tenants in the current economic climate.
