According to the 2023 Rental Market Report issued by the Canadian Mortgage and Housing Corporation (CMHC), which published its analysis across the country on Wednesday morning, affordable apartments do not cost more than 30 percent of a household's income.

CMHC divided the major municipalities across the country and calculated the number of units affordable for people in the lowest income bracket.

The report states: Low-income renters face an additional challenge in the form of especially low supply and low vacancy rates for affordable units in major markets in Canada," and below are the cities with the fewest affordable rental apartments:

Vancouver

In 2022, only 1 percent of the rental stock was affordable for people within the lowest income bracket in Vancouver.

In 2023, this was no longer the case, and the report showed that the city's vacancy rate for purpose-built units was 0.9 percent, and the average rent for a two-bedroom apartment increased by 8.5 percent, reflecting an average price of $2181.

Researchers believe demand was driven by record immigration to the area and decreased affordability of homeownership.

The report stated that the stock of such units is statistically zero in Vancouver, Ottawa, and Toronto, and less than 20 percent elsewhere."

Toronto

The report shows that the capital of Ontario has a near-zero number of affordable units for low-income earners in 2022 and 2023.

The vacancy rate for rentals designated for this purpose was 1.5 percent, with two-bedroom apartment rents around $1940 per month, an increase of 8.7 percent from the previous year.

Finding apartments became more difficult, with a vacancy rate of 0.7 percent and an average cost of $2862 for a two-bedroom unit.

The report indicates that “strong population growth, a flexible labor market, and rising borrowing costs for homeownership contributed to market tightening," leading to a widespread deterioration" in affordability for a larger number of renters amid rising inflation.

Ottawa

The capital city had a higher vacancy rate for purpose-built rentals, but very few affordable apartments for low-income families.

Data shows that in 2022 and 2023, Ottawa residents seeking affordable rents - less than 30 percent of their income - were excluded from the market.

The city's vacancy rate was 2.1 percent for a median two-bedroom apartment costing $1698, with a vacancy rate of 0.4 percent for rental units, renting for about $2085 for two bedrooms. According to the report, supply in Ottawa increased, but demand grew at the same pace, and ultimately, the market remained tight."

Calgary

Low-income renters in Alberta's two largest cities had difficulty finding affordable homes, although base prices remained lower than in other major cities.

In 2022, five percent of rental stock in Calgary was affordable for low-income earners, which dropped to 3.1 percent after one year.

The vacancy rate for the purpose-built rental market in the municipality was 1.4 percent at a price of $1695 for a two-bedroom unit, with rates increasing by 14.3 percent, according to the report.

Residential apartments are slightly more expensive in Calgary, with an average rent of $1819 for a two-bedroom apartment and a lower vacancy rate of 1 percent.

The report indicates Calgary is facing its lowest vacancy rate in nearly a decade, with rates falling from 2.7 percent to 1.4 percent in 2023.

Edmonton

Edmonton offered more affordable options for low-income renters but also experienced a decline.

In 2022, 13 percent of its units were affordable for low-income renters, dropping to 12.7 percent in 2023. The city's vacancy rate was 2.4 percent for purpose-built units, with a similar rate of 2.5 percent for residential apartments.

Prices for each category are similar, with purpose-built units averaging $1398 monthly, and residential units averaging $1359 for two bedrooms.

Why are there fewer affordable apartments? The report provides a set of reasons behind the rising prices of rental units.

The report states that rising borrowing rates and home prices have decreased renters' ability to eventually own a home.

Data shows there is a correlation between rising home prices in Vancouver and Toronto and the decreased availability of affordable rentals. In the second quarter of 2023, average home prices in these cities were 50 percent higher than the average household income.