Rental wages in Canada 2022
This study examines the gap between the minimum wage and what it costs to rent an apartment in Canada. The rental wage measure provides a clear picture of the relationship between wages and rents because it calculates the hourly wage required to afford rent while working a standard 40-hour week and spending no more than 30 per cent of one’s income on housing. In other words, the rental wage is how much people need to earn to pay rent without spending too much of their income on it.
The rental wage is considerably higher than minimum wage in every single province. Even in the three provinces with the highest minimum wage in Canada—B.C., Ontario, and Alberta—there’s a shortfall in what minimum-wage workers earn and the rent they have to pay, on average.
In practice, this means that the higher minimum wages in these provinces don’t directly translate into better living conditions because landlords capture a larger share of those wages through high rents. The wage increases that people fought so hard for should improve the material conditions of working families, not go back into the pockets of the property-owning class.
When we look at Canadian cities (CMAs), the story is equally stark: the one-bedroom rental wage is lower than the minimum wage in only three CMAs. All are in Québec: Sherbrooke, Trois-Rivières, and Saguenay. Even there, rental affordability is on the decline. Every other CMA in Canada has average rents that far exceed what workers earn on the minimum wage.
About the authors
David joined the CCPA as its Senior Ottawa Economist in 2011, although he has been a long time contributor as a research associate. Since 2008, he has coordinated the Alternative Federal Budget, which takes a fresh look at the federal budget from a progressive perspective. David has also written on a variety of topics, from child care to income inequality to federal fiscal policy. He is a regular media commentator on national policy issues, often speaking to the CBC, Globe and Mail, Toronto Star and Canadian Press. David received his BA from the University of Windsor and his MA from the University of Guelph, both in Philosophy. Follow David on Bluesky at @davidmaccdn.bsky.social
Ricardo Tranjan directs the research program for the CCPA-Ontario, focusing on collaboration and movement building. Ricardo’s expertise centres on Ontario public finances and the political economy of social policy, especially public education funding, income support programs, and rental housing. He is a frequent commentator in the media and public speaker. In addition to regular op-eds in major news outlets and several policy analyses, Ricardo is the author of two books: Participatory Democracy in Brazil (2015), a scholarly analysis of his native country; and the national bestseller The Tenant Class (2023). Previously, Ricardo managed the City of Toronto’s Poverty Reduction Strategy Office and briefly taught at universities in Ontario and Quebec. He holds a Ph.D. from the University of Waterloo’s Balsillie School of International Affairs and speaks English, French, Spanish, and Portuguese.
