People are really feeling the pain of inflation lately because food prices and other everyday objects are rising, especially in and around major cities like Toronto, where the cost of rent continues to skyrocket and homes are becoming even less affordable for the average resident.
While the price of housing has risen at an exponential rate higher than anything else over the years – in Ontario as a whole, the average home is now about 22.5 times disposable income – housing is a bigger share in addition to significant people’s paychecks, charging a lot out of town or region altogether.
While the province’s $15 minimum wage is a far cry from the actual living wage you need to earn to get by here, a new report has revealed some damning numbers, showing the city’s true cost breakdown.
the cost of living in toronto is the same as the cost of living in Los Angeles but with snow…
Please make this make sense
— M (@scumarcus) April 29, 2022
Insurance and credit quotes website LowestRates.ca say that housing in the city now costs a whopping $2,067.99 per month for the average renter and $5,417.12 per month for the average homeowner in 2022.
Although this is the highest cost, it is only one of many: transportation will cost you an average of $279 more per month if you are a public transit rider and 641, $13 a month if you’re a driver, and that doesn’t even include the ridiculous price of gas, parking, or car maintenance, just the typical car itself and insurance.
Then there’s food, $694.36 more per month; telephone and Internet for an additional $192.63; $132.39 for a minimum level of “entertainment” which includes Netflix and Spotify subscriptions; and $61.59 for a gym membership to stay active and healthy.
The cost of living in Toronto is too expensive
— $hahrukh (@shxhrxkh_) May 16, 2022
All told, that’s a lot to swallow: $3,427.96 per month/$41,135.52 per year at best (for renters taking public transportation) and $7,139.22 per month/85,670, $64 per year at worst (for an owner who drives).
At best with tax rates, the company suggests that commuter renters need to earn at least $52,850 just to make ends meet in town.
Renters who drive will need to earn $59,500; owners who commute will have to earn $114,870 before taxes; and owners who drive, $122,550 — and that is only with average prices.
A person working full-time at minimum wage in an untipped job, with the required unpaid break of 30 minutes per shift, will earn $2,250 a month before taxes.
So @LowestRates_caThe Toronto cost of living page is updated today and finds double-digit year-over-year inflation for everyone.
Renters using public transit increased by 15.5%
Renters who drive up to 16%
Owners transiting up 34%
Owners who drive up to 46% https://t.co/793ZvXS2BE
— John Shmuel (@jshmuel) May 17, 2022
Given that these numbers are just a baseline, it’s no wonder so many people move or absolutely struggle to stay here, and so few actually thrive.
Unfortunately, with so many people moving, even small towns in Ontario are becoming too expensive.