Tom Dunn makes an annual salary of $62,000 as a graphic designer and rents a basement apartment in Toronto’s Annex neighbourhood but he fears that he may never be able to afford a larger unit above ground and may one day have to leave the city for a more affordable home.
Dunn, 29, has lived in his apartment for about three years, paying about $1,300 a month. A full-time graphic designer and part-time freelancer he explains that the city’s cost of living has taken a significant toll.
The average cost of a one-bedroom apartment in Toronto now stands at $2,359, according to data compiled by Rentals.ca. While that is down 5.4 per cent from this time last year, it still makes Toronto the third most expensive rental market in the country, behind Burnaby and Vancouver, B.C.
“My mental health with living in a basement for three years now is starting to waiver quite a bit,” he wrote to CTV News Toronto. “Looking at anything above ground is ridiculously expensive for a 200-square-foot apartment that feels more like a jail cell.”
CTV News Toronto asked Toronto residents who live alone for their experiences staying afloat amid the city’s notorious high cost of living. We heard from more than 60 respondents, many of whom expressed concerns about having to leave a city that they otherwise love.
The responses came in the wake of Mayor Olivia Chow’s announcement that the federal government would provide $2.55 billion in low-cost financing to help build thousands of new apartment units across the city.
Officials plan to add nearly 5,000 rental units to market, though only a minimum of 1,075 units will be deemed “affordable.”
‘I’ll probably leave’ in the next two years
To make ends meet, Dunn says he rations food, buys in bulk, and cuts back on expenses from time-to-time. Even as he works side jobs and pursues further education, he says he’s unsure whether he can stay in Toronto long-term.
“If things aren’t getting better in the next two years, I’ll probably leave.”
‘I can’t enjoy the fruits of my labour’
Another Toronto resident, Lee Trotter, says he made nearly $160,000 last year but is nonetheless struggling to maintain his lifestyle, despite a salary well above the average income in Toronto.
The 46-year-old first responder lives in a 600-foot unit downtown but says he commutes to Peterborough for work and has recently had to pick up two extra jobs to just cover his expenses.
Last year, the Ontario Living Wage Network (OLWN) determined that to cover basic “living costs” in the GTA, one needs to earn a minimum of $26 an hour.
Still, between Trotter’s $2,500 rent, $275 parking fee, $700 car payment and $500 monthly gas bill, he says the cost of living alone is squeezing his budget to the point where he’s questioning the value of staying in the city.
“I can’t enjoy the fruits of my labour living in downtown Toronto,” Trotter said. “By picking up these extra jobs, I am rarely home to enjoy this lifestyle. After taxes and deductions if I just work my one full time job I make about $2600-$2700 bi-weekly,” he said. “My rent doesn’t include my electricity, my water it doesn’t include Wi-Fi… one paycheque is already just gone to living.”
‘I don’t think I’ll ever be able to get back into the market’
Even high earners say the housing market feels out of reach. Trotter says he once bought and sold homes when he was younger but now feels he’s been priced out.
“I sold my last house when I moved to Toronto nine years ago as an experiment,” he said. “I turned out really loving it, and then the pandemic hit.”
Sarah Black, 32, a college professor, echoes that sentiment.
Since signing her lease in 2019, she says her rent has jumped from just under $2,000 to nearly $2,800 a month for a two-bedroom unit near Weston Road and Lawerence Avenue West.
Even with her mother helping to cover internet, cable, and food costs, she worries about how long she can keep up.
“I only can cover my rent, insurance, and hydro,” she added.
Black says she’s skeptical that Chow’s plan could provide financial relief for single renters, adding that waitlists for affordable units could take a decade before she’s even considered.
She says that she would like to see rent control expanded as a temporary solution to help tenants like herself.
In Ontario many landlords can only raise rent by a pre-determined amount set by the province each year, however units first occupied after November 15, 2018 are exempt.
‘Space comes at a premium’
Despite the frustrations some may express, realtor James Milonas says many renters often prioritize lifestyle over budget, which can contribute to affordability woes.
“Whether you’re single or not, if you are an average renter in Toronto, you are looking for lifestyle,” he said. “A lot of people live beyond their means for the aesthetic.”
He also points to landlords who are unwilling to lower rent prices, as many are already operating at a loss. He explains, “space comes at a premium.”
“A landlord is not going to be out of pocket a thousand or more dollars a month just because somebody wants a concierge, a pool, and a gym and only wants to pay $1,400,” he said. “Being a landlord is a business.”
For those struggling, Milonas suggests reassessing their finances. “People are so entitled to want everything, and you can’t have it all — something has got to give.”
For single renters, however, that trade-off has already been made. Many say they’ve cut spending, taken extra jobs, and accepted smaller spaces just to stay in the city.
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