How much does a Cambridge renter need to make before taxes to find an affordable place to live?

It's no surprise to many that Cambridge is seeing some of the highest rental prices ever.

To rent an “affordable” one bedroom in the city, the renter would need to make a minimum of $5,594 before taxes. 

The average price for a one bedroom apartment in Cambridge is $1,678 while a two-bedroom is currently $2,396, according to popular rental website zumper.com

In the past month, two-bedroom rentals have seen an increase of 8.6 per cent and a year-over-year increase of 18 per cent. One-bedroom units have stayed quiet with only a 3 per cent increase over the last year and a small decrease of $11 from last month. 

The minimum income a renter would need before taxes for a two-bedroom unit would be $7,950.

This is based on affordable housing recommendations by Canada Mortgage and Housing Corporation(CMHC) to set aside 30 per cent of the household’s pre-tax income for rent. 

Housing is becoming less affordable for the average person, according to the 2016 census, over 40 per cent of Canadian households pay more than the 30 per cent. 

Many rental units are split houses with basement units ranging from $1,300 to $2,000 depending on the number of bedrooms. Single rooms in a shared house are averaging at $800. 

Local Cambridge MP Bryan May says that the federal government is investing in affordable housing with the National Housing Program. This will see 530,000 families removed from housing needs and cut chronic homelessness in half. 

“In our community, hundreds of housing units have already been built and many more have been announced. Local projects include two major projects on Hespeler Road, the KW Urban Native Wigwam Project on Cambridge Street and many individual units which exist within larger buildings,” said May.

According to the 2021 rental market report by the CMHC, increased demand, few additions to supply and higher rents eroded affordability within the Cambridge area. Hardly any of the two-bedroom purpose built rentals in 2021 was affordable for 20% of households with the lowest incomes.

CMHC is starting to see the market recover. “Rising vaccination rates and the easing of pandemic-related restrictions have allowed economic conditions to recover much of the ground lost to the pandemic.”