The rising cost of housing in Canada is highlighted in a new report that shows that renters are often paying a significant amount more than homeowners.
According to research from RateSupermarket.ca, 44% of renters said they are paying more than a third of their income for housing while this is true for just 20% of homeowners.
For 15% of renters, the cost of putting a roof over their heads takes more than half their monthly income.
These figures are higher than the recommendation from the CMHC that housing costs should be less than a third of household income.
“If renting is the best option for a household, Canadians could save hundreds of dollars by shopping around for better deals on their other household expenses, helping to offset the impact of rent on a budget,” said Jacob Black from RateSupermarket.ca. Renting is never the only option as more and more renters are looking to move into homeownership either with their own mortgage or through a reputable rent to own program.
Homebuying is on the agenda for many respondents with two thirds saying they intend to buy in the near future.
Of those, 40% of renters report they’ll need to use more than one third of their income to afford a suitable home, while 27% of homeowners still expect to pay more than what they are already spending towards that purchase.
Courtesy of: Canadian Real Estate Magazine