The Squeeze on Toronto Renters: Soaring Costs, Sluggish Incomes, and the Rise of Side Hustles
03 November 2026
Toronto renters are being squeezed from both sides, as rents rise faster than incomes, pushing more households to bring in an extra paycheck or ramping up side gigs to cover the gap. By last quarter, single-income renting had become the norm in the city.
The latest data, released by SingleKey's Q3 2023 Rental Intelligence Report, analysis of rental applications from across Canada, confirms the trend. Toronto renters' average annual income was $72,000, up 3.1% from the year before, but not keeping pace with a 9.2% increase in average monthly rent. This has left the typical Toronto household spending 50.6% of their income on rent, and 54.2% when debt is factored in.
That hits even harder when you consider the 3.8% decline in average Toronto renters' credit scores between 2022 and 2023, dropping to 685. Half that drop was driven by more Canadians with collections on their records, at 14.3%.
Falling Back on Second Jobs and Side Hustles
As their credit scores and savings take a hit, more tenants are taking on second jobs or side gigs to pad their incomes. The Toronto Star notes that "viral videos, furniture flipping, and social media freelance work" are cited as common ways Gen-Z and millennials are making ends meet. Zoocasa says their average Toronto renter pulls in $685.85 a month from freelance projects, pet-sitting or selling hand-made creations - but that still only covers 27.3% of an average renter's housing costs.
Side hustles run closer to home aren't any better. A 2023 City of Toronto report found Uber and Lyft drivers earned a median hourly wage of just under $16 per hour once unpaid idle time and car expenses were considered - barely minimum wage for a Canadian city.
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The latest data from the Ontario Housing Market shows what happens when rental costs outstrip what incomes from "day jobs" can provide. 48% of Ontario renters spend 31% to 50% of their income on rent, and 25% spend more than 50%.
To cope, 49% of Ontario renters are reducing food and groceries, 32% rely on more credit card debt, 31% have taken on a second job as Toronto has done, and 30% respond with some kind of informal or on the side work, like a side hustle. The gap between what a tenant is bringing in, and what the landlord is asking from them, is real - but closing gaps earning $688 a month won't do any more than buying this month with a credit card will.
In the Short Term, Landlords Offer Perks, Cut Rates
For even these "solutions," new tenants are getting a little bit of help in the form of deal sweeteners from landlords in the Greater Toronto and Hamilton Area. A survey of Q1 2024 rental developments in the area found two out of three offered incentives, up 50% since the start of 2023 - and about half offered a full one month of free rent. Urbanation's data for the quarter showed that if those incentives count towards rents, Toronto prices fell a solid 1.8% to $2.52 per square foot.
The landlord concessions reduced rents by 8%, or $280 per month. Like a side hustle, they help but don't make up the shortfall. But they can attract prospects, like the highest-quality tenants with the best chances of paying next month, as the market gets more competitive and younger renters with still-modest income growth fill more of the apartments.