A large number of Canadian renters spend more than half of their salaries on a roof over their heads, according to a new report from Royal LePage.

In Vancouver, 27 percent of renters spend more than half of their net income on rent. In Toronto, 19 percent spend more than half of their salaries, and one in ten residents of Montreal is in the same situation. The national rate is 16 percent.

Tom Davidoff, an associate professor at the Sauder School of Business at the University of British Columbia, said: "The goal is to have nearly a third of your income be affordable."

Rental prices have risen significantly at a time when the country is grappling with a housing crisis following the pandemic, which experts say is also fueled by immigration. The low rental vacancy rate is considered part of the problem, according to experts, driven by current difficulties in entering the market as buyers.

Davidoff added: "You have a lot of renters who really want to own, but until prices come down, it will take some time."

The study indicates that 27 percent of renters in Canada plan to purchase a property in the next two years; however, 69 percent stated they do not have such plans. Just over half pointed to insufficient income as the reason for their decision.

It seems that younger renters are not giving up. The survey shows that those with the greatest intention to move into the buying market are the middle millennials, specifically individuals in their thirties, who may also be ready to start a family.

Phil Super, the president and CEO of Royal LePage, said: "While one-third of Canadian adults are currently renting, and there are families completely satisfied with that, the desire for home ownership remains strong among a large segment of this population."

"It is understandable that the biggest barrier to entry is the ability to raise the capital for a down payment."

The report, which included 1,506 Canadian adults online from June 7 to 10, found that one-third of Canadians live in rental accommodations. This number has gradually increased in recent years due to affordability challenges in the resale market.

Super stated: "The housing industry and government must work together on innovative solutions to increase inventory, including rentals, and support those most affected by rising market conditions."