Here’s how much you need to make to comfortably afford rent in Ottawa

A for rent sign is displayed on a house in Ottawa on Friday, Oct. 14, 2022. THE CANADIAN PRESS/Sean Kilpatrick

A new report shows the increase in minimum wage in Ontario has done little to close the gap on housing affordability in the capital.

A renter who wants to spend no more than one third of their monthly income on a one-bedroom apartment in Ottawa needs to make more than double the minimum wage to do it, and the gap is even higher in Kanata, where average rents exceed the citywide norm.

Real estate website Zoocasa looked at rents in cities across Ontario after minimum wage went up 40 cents an hour to $17.60 on Oct. 1. A recent report found a significant gap in how much money a person needs to make per hour, assuming a 37.5 hour work week, vs. the provincial minimum wage.

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The Zoocasa report says the average rent for a one-bedroom apartment in Ottawa is $1,977 a month, requiring an annual income of at least $74,138 to be able to afford it without spending more than a third of one’s income on housing. Breaking it down into hourly wages, affording a one-bedroom apartment in Ottawa requires a wage of at least $38.02 per hour, more than $20 above the minimum wage, the report says.

“While rental prices have cooled slightly from the record highs of 2023, affordability remains out of reach for many Canadians, especially single earners trying to rent a one-bedroom apartment at the average price,” Zoocasa says.

The situation is even more pronounced in Kanata, where average rents are higher.

The report says the average one-bedroom in Kanata, based on Rentals.ca rates, goes for $2,221 per month, or $244 more than the Ottawa average. This means that a person wanting to spend no more than a third of their income on rent would need to be making $42.71 per hour, or $83,288 per year, nearly 2.5 times the minimum wage.

Kanata has the third highest required hourly wage in the province, behind Toronto and Oakville, according to the report. North Vancouver has the highest rate in the country, requiring $49.42 an hour to afford rent. The minimum wage in B.C. is $17.85 per hour.

The Zoocasa report says the cost of housing is rising faster than earnings are.

“Financial experts often point to a golden rule of budgeting: no more than 32 percent of your gross income should go toward housing. It’s a standard that’s supposed to leave room for food, transportation, savings, and a little breathing room for the unexpected. But for Canadians earning minimum wage, that target feels like an impossible dream,” Zoocasa says.

“A full-time worker putting in 37.5 hours a week earns between $29,000 and $35,000 a year, depending on the province. According to that guideline, their rent should be around $775 to $930 per month. The problem is that in most Canadian cities, even a basic one-bedroom apartment costs nearly double, or even triple, that amount. While minimum wages have climbed, rent has continued to rise faster, leaving workers locked in a cycle where a full-time job doesn’t guarantee affordable housing.”

Kingston rents higher than Ottawa’s

Rents in Kingston have also climbed in recent years, exceeding the Ottawa average. According to the Zoocasa report, the average rent for a one-bedroom apartment in the Limestone City is $2,122 per month, meaning a person would need to make just over $40 per hour, or $79,575 a year to comfortably afford it on a single income.

“Ontario’s housing costs continue to outpace wage growth at nearly every level, confirming that incremental wage adjustments are insufficient to bridge the affordability gap,” the report states.

A worker in Peterborough needs at least $32.08 per hour to afford the average one-bedroom, according to the report.

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While the Zoocasa report does not include Gatineau, Que., the Rentals.ca rent report says the average rent for a one-bedroom apartment there is $1,701 per month. Using similar math to the Zoocasa report, a person with a single income would need to make $63,786 per year, or around $32 per hour to spend no more than a third of their gross income on rent. Minimum wage in Quebec is $16.10.

“The path forward requires more than modest annual raises. It demands that income standards be tied directly to real-world housing costs, ensuring that minimum wage truly reflects what it takes to live, not just survive,” the Zoocasa report says.

“Until then, Canada’s wage increases will continue to look good on paper but offer little relief in reality.”