Affordability pressures appear to be easing for renter households in parts of Ontario as rent growth slows in several major markets.
A new analysis from Rentals.ca and Urbanation uses the Canada Mortgage and Housing Corporation’s commonly referenced benchmark that housing costs should not exceed 30 per cent of pre tax household income. The findings show the share of median renter income required to afford average asking rents has declined from peak levels reached in 2022 and 2023.
In Toronto, average asking rents peaked at 38.1 per cent of renter household income in November 2022. By October 2025, that figure had fallen to 29.8 per cent. Over the same period, average rents declined by approximately 337 dollars per month, from 2,896 dollars to 2,559 dollars.
Montreal also saw improvement, with rents representing 30.3 per cent of income in October 2025, down from 34.2 per cent two years earlier.
The report notes that while rent levels remain historically elevated and many households continue to feel financially stretched, the gap between renter incomes and asking rents has narrowed meaningfully in several major cities.
The analysis does not break down data for smaller communities such as Northumberland County, where affordability continues to be shaped by local supply and demand conditions.
Researchers caution that while trends are stabilizing, affordability can deteriorate quickly if rent growth accelerates again.
(Written by: Joseph Goden)