A recent report from the Canadian Centre for Policy Alternatives has shed light on the daunting reality of housing affordability in Toronto. The study indicates that Ontario’s minimum wage would need to skyrocket to $40 an hour for workers to comfortably afford a two-bedroom apartment while still having enough funds for basic necessities. Even with the province’s relatively higher minimum wage of $15.50, the steep rise in housing costs in Toronto has rendered it nearly impossible for low-income individuals to secure affordable housing.

The report’s findings reveal a widening gap between wages and rental costs, highlighting the alarming strain faced by minimum-wage earners. With an average monthly rent of $2,572 for a one-bedroom apartment, meeting the affordability criteria would require the minimum wage to be $33.60. However, for a two-bedroom apartment, the minimum wage would need to surpass $40. These figures underscore the urgent need for effective measures to address the housing affordability crisis and bridge the disparity between income and the rising cost of living.

The situation in Toronto serves as a stark reminder that the current minimum wage falls far short of enabling workers to afford decent housing, exacerbating financial hardships for low-income individuals and families. It is imperative for policymakers, organizations, and communities to come together to find sustainable solutions that prioritize housing affordability and alleviate the burden on those struggling to make ends meet in an increasingly expensive rental market.

Click here to read additional information about the report.