A new Rentals.ca survey paints a clear picture of renter strain this summer. One-third of Canadian renters (34%) report spending more than half of their after-tax income on rent. Those high-burden renters tend to search longer, feel more frustrated, and are more likely to consider moving cities. Yet despite the pressure, two-thirds (66%) of renters paying 50%+ still say they don’t want a roommate. Among 18–24-year-olds, about half (49%) spend over 50% of income on rent, and their most common budget range is $1,000–$1,499. Only 22% of all respondents were at or below the 30% affordability benchmark. The findings are based on 510 responses nationwide.

Zooming out, the market backdrop has softened: the national average asking rent in July fell 3.6% year-over-year to $2,121—Canada’s 10th straight month of annual declines and the largest drop so far in 2025. Month-to-month, the average was down just $4 from June.

What this means for renters

  • Longer searches + relocation pressure. Renters who spend 50%+ report longer search times (nearly half have been looking 6+ months), greater dissatisfaction with listings, and a higher likelihood of considering a new city.
  • Roommate resistance is real. Even under strain, most high-burden renters prefer privacy and autonomy to cost-sharing—even if that choice prolongs their search.
  • Affordability is uneven. Younger renters face the tightest squeeze: lower budgets meet still-elevated asking rents, even as the national average edges down.

3 ways to break out of the rent cycle

1) Lower your rent-to-income ratio—fast

Even small percent drops compound into real savings you can redirect into a down payment.

  • Negotiate and time your move. Ask about concessions (free month, parking/utilities included) or target “shoulder” periods when listings sit longer.
  • Widen the search box. Add nearby neighbourhoods or transit-friendly suburbs where $100–$300/mo savings are realistic.
  • Consider short-term co-living. If you’re among the 66% who don’t want a roommate, consider a time-boxed 6–12 month share to accelerate savings, then switch back to a solo place once you’ve hit your target. (A temporary compromise can cut years off your renting horizon.)

2) Supercharge your down payment the Canadian way

Use the tax-advantaged tools available—and stack them.

  • FHSA (First Home Savings Account): Contribute up to $8,000/year (lifetime $40,000). Contributions are generally tax-deductible, growth is tax-free, and qualifying withdrawals are tax-free. Open the account early so unused room can carry forward.
  • RRSP Home Buyers’ Plan (HBP): Withdraw up to $60,000 from RRSPs (per buyer) for a qualifying first home—repay over up to 15 years. The increased limit applies to withdrawals after April 16, 2024.
  • Combine FHSA + HBP: You can use both on the same purchase if you meet the conditions—powerful for couples.

Action step: Automate transfers on payday (even $250–$500/biweekly) into your FHSA and, if applicable, RRSP. Treat it like rent you pay to yourself.

3) Build a 12-month “buy box” plan

A concrete plan turns drifting into progress.

  • Define your buy box: City/area, property type, price ceiling, minimum bedrooms, and must-have features. Track 5–10 active comps monthly to learn real pricing.
  • Tidy your credit + debt: Aim for <30% credit utilization, pay down high-interest balances first, and avoid opening new tradelines right before pre-approval.
  • Get pre-approved early: A broker can translate your income/debts into an exact max price and monthly payment so you know what you’re solving for—then you can work the numbers backward into a savings target and timeline.
  • Consider income-offset strategies: Duplex/secondary-suite “house hacking,” or a suite-ready property, can shorten the path from renter to owner by using rental income to qualify and to subsidize payments once you buy.

Bottom line

Rents are easing year-over-year, but many Canadians—especially younger renters—are still devoting half their income to housing and feeling it in longer, more frustrating searches. If ownership is your goal, combine a short-term push to lower your rent burden with tax-advantaged saving (FHSA + HBP) and a clear buy-box plan. That trio won’t just make renting more bearable now—it will pull your first purchase meaningfully closer.