Toronto rent more affordable than 19 other leading global markets -study

Relatively healthy rent-to-income ratio makes Toronto attractive compared to London and New York, according to a new report

Toronto rent more affordable than 19 other leading global markets -study
While Toronto has kept up its status as Canada’s hottest housing market for some time now, a new study by online service RENTCafé found that the city’s rental segment still remains a relatively burden-free bargain when compared to other global metropolitan markets.

The survey, which looked at the 30 best cities to live in around the world, evaluated affordability in terms of the ratio between average rent prices and local median incomes.

“Canada’s most populous city … appears to be one of the best choices for those in search of a quality urban environment and reasonable rent prices. Toronto landed on the 11th spot in the list of the most renter friendly urban hotspots in the world, with a 29% rent-to-income ratio,” RENTCafé stated, with $60,500 as the median annual income and $17,760 as the average rental rate.
               
This fared much better than the 40% ratio ($57,700 median income, $23,280 average rent) in London and the 59% in Manhattan, New York ($75,600 median income and $44,700 average rent, making it the most expensive rental market in the world).

“Traditionally, housing costs exceeding 30% of the household income have been viewed as a red flag, so this is also what we adopted as our first threshold. Thus, we considered the cities where the average rent was 30% or less of the local median household income to be burden-free,” RENTCafé explained.

The full report can be accessed here.


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