The 30% benchmark for affordable housing is tough. Here’s what it can afford the average worker in different parts of the GTA

Thirty per cent of your gross income has long been a benchmark to determine the most an individual should allocate towards housing in order to keep their spending in check.

But in the GTA real estate market today, sticking to that “is going to be difficult,” one realtor told the Star.

As of June, the average one-bedroom rental costs about $2,200 across Ontario and more than $2,500 in Toronto, according to a rentals.ca report by real estate research firm Urbanation.

By the 30 per cent standard, only someone earning $100,000 per year could comfortably afford to rent a one-bedroom apartment in the city, said realtor Othneil Litchmore. Meanwhile, the average Ontarian would need to earn $88,000 per year.

“It’s tough,” Litchmore said. “I would imagine more renters are (not abiding) by that rule today more than ever before.”

In Toronto, the median income for individuals in 2020 was $39,200, and across the province, it was $41,200, according to the 2021 census.

Following that benchmark would mean that the average worker in Toronto can only afford to spend about $980 on rent and other Ontarians can only spend about $1,030.

Whether people decide to follow the 30 per cent guideline depends on their lifestyle and expenses, realtor Kylie Walters told the Star in an email.

“The best thing to do would be to calculate your monthly expenses outside of housing and work backwards from there. This will give you an overall picture of what your budget looks like before diving into something you can’t afford, and allow you to adjust as needed,” she said.

But even then, not following the guidelines could spell trouble when it comes to securing housing.

“The tricky part is that most landlords still follow this ratio when considering applicants, so if you are competing for a unit with another potential tenant and not falling within the 30 per cent benchmark while the other person does, it could potentially hurt your chances of securing the rental,” Walters explained.

For people who have lived in the same rent-controlled home for many years, sticking to the threshold is probably much more doable than for those who are looking for new homes today, Litchmore said.

Here’s a look at what the figure can afford people on a single income in different GTA cities today.

Toronto

With $960 to spend on rent each month, a tenant in the city could afford to rent a furnished room in a four-bedroom unit in a house on Dundas Street East. For $950 per month, they would live with three young male professionals, according to the listing on Facebook Marketplace. The building has a “private patio with a beautiful city view,” a walking distance from the Eaton Centre, the listing adds.

Brampton

In Brampton, the median income among residents was $36,000 in 2020. To keep with the 30 per cent measurement, a resident should only spend $900 on rent.

That could afford them an $850 room at a three-bedroom home with a walk score of three, and a transit score of 49. The Facebook Marketplace listing says it includes a private bathroom and a bed with a mattress, a table and closet.

For a room in a condo that’s a bit brighter and bigger, someone could pay $875 — as long as they don’t mind living with their landlord, who has a long list of house rules and requirements: having guests, drinking alcohol and using building facilities is strictly forbidden.

Oakville

With a median income of $47,200 Oakville residents would be able to spend $1,180 on rent. That could pay for a 150-square-foot studio in a multiplex, according to the listing. The home on Lakeshore Road East is pedestrian friendly, with parks, shopping and groceries nearby. It is available to rent for $1,150.

Pickering

The median income for Pickering residents in 2020 was $45,200, meaning they could spend $1,130 on rent. With that budget and few options, residents could afford to rent one furnished bedroom in a three-bedroom apartment on a month-to-month basis, according to the listing on Kijiji. The house, which has a backyard, would be in a quiet neighbourhood, the post says. Utilities, internet and cable would all be included in the price.

Mississauga

In Mississauga, the median income in 2020 was $39,200, and sticking to the 30 per cent benchmark would mean allocating $980 per month on rent.

In this city, a resident would be able to rent a furnished room in a three-bedroom Malton house for $950, although the Facebook Marketplace listing notes it’s for women only. The home, which includes parking, is near Westwood Mall, Humber College North and the Pearson Airport, the listing notes.

Markham

In Markham, tenants would be able to afford $900 rent as residents had a median income of $36,000 in 2020. That would be exactly enough to cover one of two bedrooms in a walkout basement of a townhouse, where the bathroom in the basement is shared, and the tenant would use a shared kitchen on the main floor. The listing adds that the seller and agent “do not warrant retrofit status” of the basement, which means it may not be up to code.

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