Canadians are finally getting some relief after years of sky-high rent. In October, the average asking rent dropped to $2,152, a 1.2% drop compared to last year and the first time that number has gone down since July 2021. It looks like the pace of rent inflation could slow even more in the next few years, according to a new report from Desjardins. Here’s why that matters: high rental prices eat into a higher percentage of renters’ income, making it harder to save, invest, and build their wealth. In 1999, renters had to put only 25% of their take-home pay towards housing costs, compared to 23% of homeowners. But by 2022, that gap widened, with renters spending 29% of their pay on housing compared to 21% for homeowners. In fact, the net worth of renters grew by three to 3.5 times their income from 2010 to early 2024, while homeowners saw their net worth grow nine to 13 times their income. With rental prices coming down, renters may be able to sock more money away into savings.
