A recent analysis conducted by Money.ca reveals that Quebec City is the best option for prospective homebuyers looking to rent while saving for a home in Canada. The study assessed rent affordability, and the time required to save for a deposit using average one-bedroom rent prices and annual income data from Statistics Canada to determine its findings.

In Quebec City, the average monthly rent for a one-bedroom unit is $911, while the average annual wage is $50,500. This means residents in Quebec City are only required to spend 21.65 per cent of their annual income on rent, unlike typical Canadians who spend approximately 34.5 per cent of their wages on rent.

Montreal ranks as the second-best city for renting while saving for a home, where the average monthly rent for a one-bedroom is $960 and the average annual income is $43,800. Tenants, therefore, only need to spend approximately 26.3 per cent of their earnings on rent.

At the other end of the spectrum, Toronto is the worst major city for prospective homebuyers to rent in, where an average one-bedroom apartment costs $1,691 per month and the average income is just $41,800. This means renters in Toronto must spend about 48.55 per cent of their income on rent, leaving little room for savings.

The study also notes that Airbnb’s rise due to the allure of short-term gains, has reduced the supply of long-term rental units in both Toronto and Vancouver, pushing rent even higher in these already tight markets.

“Deciding where to rent while saving for a home can be very challenging with rising rental prices,” explains Kris Bruynson, VP of Marketing and Product at Money.ca. “Although Vancouver and Toronto are appealing, everyone must weigh the cost versus savings when renting in these expensive cities. Is it worth spending 49 per cent of your income on rent?”

For more, visit www.money.ca