Soaring home values have priced many Toronto residents out of ownership, but renting isn't a heck of a lot better right now. A new report reveals that almost one out of every five Toronto renters now spends more than half of their monthly income on rent, a concerning window into the affordability crisis plaguing the city.

New data from Royal LePage's 2024 Canadian Renters Report shows a shocking 19 per cent of Toronto renters — one in five — now spend more than half of the money they rake in each month on rent, leaving little space for ever-increasing grocery bills and other cost-of-living expenses.

Toronto renters paying more than half of their income towards rent exceeded the national average of 16 per cent.

Zooming out to a province-wide view, 18 per cent of Ontario renters spent more than half of their income on keeping a roof over their heads. The report also found that 35 per cent of Ontario renters spend up to 30 per cent of their net income on monthly rent costs, while 36 per cent spend between 31 and 50 per cent of their income.

Allocating no more than 30 per cent of wages to housing is generally considered the standard for comfortable living in Canada.

The report found that nearly half of people in Ontario surveyed (49 per cent) said they have no plans to buy a home in the next two years, with 61 per cent of that group citing income as the reason.

Gillian Ritchie, broker, Royal LePage Real Estate Services Ltd. in Toronto, says that the city currently lacks "adequate inventory of decent larger units or freehold rental accommodations."

"This has made it increasingly difficult for families to find suitable rental housing, whether they are waiting for the right time to buy a home or are looking for a temporary residence amid relocation or renovations," said Ritchie.

Compounding the rental housing shortage, Ritchie explains that "many investors bought rental units at the onset of the pandemic amid the record-low interest rate environment, and took advantage of low borrowing costs by purchasing multiple properties."

"As mortgage carrying costs have materially increased over the last two years, we have noticed some investors offloading their units, potentially reducing available rental stock."