Rental prices across Waterloo region have soared since the beginning of the year, with the average rental units in many cities inching further away from “affordable housing.”
According to the Canada Mortgage and Housing Corporation, housing is considered “affordable” if it costs less than 30 per cent of a household’s before-income tax income.
The newest report from Rentals.ca shows cities within the region reporting rental increases upwards of 20 per cent since the start of 2022.
The report ranks cities in Canada based on the average rent price of a vacant one-bedroom unit.
Based on the report, the average one-bedroom unit in Canada costs $1,639 per month, while the average cost for a two-bedroom unit is $2,110.
Using the average monthly rental data from Rentals.ca, here is what your yearly pre-tax household income has to be in cities across Waterloo region if you want "affordable housing."
KITCHENER - $73,000 for a one-bedroom unit
Kitchener is currently ranked as the 11th most expensive city in Canada when it comes to one-bedroom rental units.
Kitchener was the only city in Waterloo region that saw the rental market decrease in the last month, dropping 0.76 per cent from May to June, or $13 per month.
The most recent report from Rentals.ca says the average one-bedroom rental price in Kitchener in June was $1,825.
Using the average June rental price, the yearly cost to rent a one-bedroom apartment in Kitchener is $21,900.
This means to be affordable, the household’s pre-tax income needs to be $6083.33 per month or $73,000 per year.
For those looking to rent a two-bedroom unit, the report says the average rent will come with a price tag of $2,115 per month.
This figure dropped 2.94 per cent, or $64, compared to the May report.
For a two-bedroom unit, the household will be spending $25,380 each year on rent.
For this to be considered affordable, the household’s pre-tax income will need to be $84,600, or $7,050 per month.
WATERLOO - $48,960 for a one-bedroom unit
Compared to other cities in the region, the monthly rental cost in Waterloo is significantly lower. The report indicates Waterloo is the 30th most expensive rental city in Canada.
The average monthly one-bedroom rent in Waterloo was $1,224 in June, an increase of 1.41 per cent from the previous month.
For a one-bedroom, the average renter will be paying $14,688 for rent per year.
To be considered affordable housing, the household will need an income of $48,960 or $4,080 per month.
When looking at a two-bedroom unit, the average rental price comes to $1,831 – an increase of 1.55 per cent from the price in May.
This comes out to an annual rental cost of $21,971 – meaning the yearly household income has to be $73,237 pre-tax, or $6,103.08 per month.
CAMBRIDGE - $74,800 for a one-bedroom unit
The rental price in Cambridge jumped significantly as prices for a one-bedroom unit increased 6.25 per cent from May to June according to the report.
The average one-bedroom rent is $1,870 – which is $22,440 per year.
To remain in the affordable range, the household income needs to be $74,800 per year or $6,233.33 per month.
Compared to a two-bedroom with an average rent of $2,315, or $27,780 per year, the yearly household pre-tax income needs to be $92,600.
This means the monthly pre-tax income will be $7,716.66.
GUELPH - $79,840 for a one-bedroom unit
The most expensive city in the region for a one-bedroom apartment is the City of Guelph, which ranks as the 7th most expensive city in Canada.
The average one-bedroom unit will set back renters $1,996 per month – a figure which increased by 2.36 per cent since May.
The yearly costs will come in at $23,952.
For this to be considered affordable, the pre-tax household income will need to be $79,840 per year or $6,570 per month.
The cost of a two-bedroom unit comes in at $2,271 per month – or $27,252 per year.
For this unit to be affordable, the yearly household income needs to be $90,840. This equates to a monthly salary of $7,570.