Twice as many renters are overpaying for housing than homeowners

Twice as many renters are overpaying for housing than homeowners

Twice as many renters are overpaying for housing than homeowners

The rising cost of housing in Canada is highlighted in a new report that shows that renters are often paying a significant amount more than homeowners.

According to research from RateSupermarket.ca, 44% of renters said they are paying more than a third of their income for housing while this is true for just 20% of homeowners.

For 15% of renters, the cost of putting a roof over their heads takes more than half their monthly income.

These figures are higher than the recommendation from the CMHC that housing costs should be less than a third of household income.

"If renting is the best option for a household, Canadians could save hundreds of dollars by shopping around for better deals on their other household expenses, helping to offset the impact of rent on a budget," said Jacob Black from RateSupermarket.ca.

Black also advises that potential homeowners shop around for the best mortgage rates.

Homebuying is on the agenda for many respondents with two thirds saying they intend to buy in the near future.

Of those, 40% of renters report they'll need to use more than one third of their income to afford a suitable home, while 27% of homeowners still expect to pay more than what they are already spending towards that purchase.

Regional variations

Looking at regional stats, those in Toronto are overspending the most (34% of income on housing costs) followed by those in Montreal (33%), and Vancouver (30%).

Those in Edmonton (29%), Calgary (27%), and Quebec (22%) are spending the lowest share of their income on housing costs.