How much will it cost to rent vs. buy in Toronto and GTA by 2024?


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The largest city in Canada is Toronto. TorontoThe Greater Toronto Area (GTA) is home to many diverse and unique regions.

Most adults will rent a property for some time before buying a home. Understanding the difference in rental costs and mortgage payments will help you decide where to buy or rent in Toronto and its surrounding areas. This knowledge will empower you to make confident and informed decisions, especially if you are renting while saving up for a deposit.

Zoocasa analyzed the cost differences between buying and renting 35 Toronto neighborhoods as well as surrounding GTA cities. The average home prices for May 2024 and rental prices for Q1 2024 were sourced from the Toronto Regional Real Estate Board’s Rental Report. Monthly mortgage payments were calculated using’s mortgage affordability calculator, assuming a 25-year amortization, a 20% down payment, and a 5-year fixed rate of 4.64%. 

Mortgage payments in the GTA are skyrocketing

Areas with the highest average mortgage payment are ideal for those with larger housing budgets. King ($8,848), Oakville ($6,943), Richmond Hill ($6,381), Aurora $6,257 Stouffville ($6,140).

Renting is cheaper than buying in these five areas. In King, for example, mortgage payments are 170% more than rental costs. Aurora is the only area where mortgages are higher than rent.

The average mortgage payment across the Toronto Regional Real Estate Board is $5,049.  

For those looking for affordable options, the Greater Toronto Area still has many. The average mortgage payment in 43% of cities is less than $5,000. Brampton is one of them, as are Whitby and Halton Hills. 

National Rental Trends & Local Affordability

According to the June 2024 report, Canada’s average asking rental price reached a record high of $2,202 in May. Interestingly, this national milestone is comparable to the GTA’s lower-end rental averages. The five most affordable locations to rent in the GTA include Oshawa ($2,300), Simcoe County ($2,175), Innisfil ($2,107), New Tecumseth(2,107 $) Brampton ($1,921). Simcoe County is the city with the greatest disparity between mortgage payments and rental costs. The average mortgage payment in Simcoe County is 135% more than rental costs. Oshawa has the slightest difference in terms of rental costs and mortgage payments, but still, mortgage payments are 104% higher.

Aurora, Caledon, Whitby, BurlingtonThe rental prices are moderate and range from $2600 to $2900, which indicates a middle ground for affordability. Rentals that cost less than $2,300 a month are considered affordable by the GTA housing market.

In all regions, renting remains significantly more affordable than monthly mortgage payments. However, building equity in a home often becomes a person’s most significant financial asset, which can also help build retirement savings.

Rent the Most Affordable Neighbourhoods in Toronto

Knowing where to look is essential if you’re hoping to score a rental deal in Toronto. Four of the 35 neighborhoods examined have rents below $2,500. They are Mount Pleasant and Yorkdale Glendale Weston.

Toronto offers a wider range of rental options with a larger budget. This gives you more options to find your perfect home. Twenty-four neighborhoods, or 68% of all neighborhoods analyzed, had average rents between $2,500 and $3,000

Although renting is more affordable for all Toronto neighborhoods compared to buying a house, the rent-tobuy ratio, or the relative affordability between renting and buying, varies from neighborhood to neighborhood. Understanding this ratio can help determine your budget and lifestyle’s most cost-effective housing option.

Regent Park is the most affordable neighbourhood in Toronto to own a home. The average monthly cost of a mortgage is $4430. The average rent in this neighborhood is $2,890 a month, which means that it costs $400 more than more budget-friendly options.

Rents are the lowest in Rockcliffe and Smythe, Keelesdale and Eglinton West with an average of $2,245. West Hill and Centennial Scarborough are next ($2,344), followed by Yorkdale, Glen Park and Weston ($2,486). These more affordable rental areas have significantly higher average mortgage payments, ranging between $4,803 and $5,293. 

Unsure whether renting or purchasing is the best choice? Whatever you decide, we’re here to help! Call us today! We can find you the perfect home that meets your needs. 

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