Carleton University student Grace Rhodes hasn’t bought new clothes in two years.
“I definitely don’t do stuff because I don’t have the money,” said Rhodes, who rents a home with five other students.
Rhodes said the “crazy” state of the rental market makes it hard to afford student life and has already quashed her hopes of home ownership.
“Absolutely not will I ever afford a place or live in the city,” she said.
Rhodes isn’t the only one feeling the pinch. Rent in Ontario has increased by 133 per cent over four years, according to a Capital Current analysis of data Statistics Canada uses to track rent prices from Jan. 1, 2020 to Dec. 1, 2024.
And U.S. president Donald Trump’s threat of tariffs against Canada could exacerbate rent prices even further, according to an expert.
“Windows, doors, flooring: all of those materials will become much more expensive, which will drive up the price of housing yet again,” said Ian Lee, an associate professor at Carleton’s Sprott School of Business.
“That is not a good thing.”
Lee said he expects housing to be a top issue in the provincial election, along with Canada-U.S. relations and health care.
“Politicians are finally getting the message that there’s a lot of angry young Canadians who are being priced out of markets,” Lee said.
Karim Ali, a real estate agent in Ottawa, attributes increased Ontario rental prices to higher demand and decreased supply. He said factors such as rising interest rates make mortgages more expensive and affect both rental and purchase markets.
Construction slowdowns during the pandemic and subsequent supply chain delays also played into the reduced supply of rental properties, he said.
“Nowadays … you can find the home you want, but you probably won't get it anyways," Ali said.
"It's common that you're one of five or 10 to 15 offers for a rental which was completely unheard of before," he said.
Ali said that, as a result, the market leaves renters feeling uncertain and frustrated — particularly younger people facing higher prices than their parents.
Ottawa real estate agent Nick Fundytus said the pandemic initially caused a short decrease in home prices as people rushed to sell and low interest rates encouraged many renters to jump into home ownership.
But all that changed when rates rose raising rental rates and leaving fewer options for tenants, Fundytus said.
"Landlords are getting really fussy about who they take on as tenants," Fundytus said, often requiring polished applications, good credit scores and sometimes criminal record checks.
He said this is especially difficult for new Canadians who may lack credit history or established employment.
“Tenants are applying to a few places and really crossing their fingers that one of them is going to take them," Fundytus said.
Unlike the rental market, Fundytus said purchasing a home has become easier since the pandemic.
Multiple offers are more rare and buyers can often secure conditions and purchase below the asking price, he said.
Fundytus said he believes governments should have built more public housing or created more zoning for rental housing years ago.
Fundytus said he does not expect the current provincial government to provide the needed support, and he is concerned that a potential federal Conservative government might take a hands-off approach to housing.
“I'm afraid that we will also see more of the same under Poilievre if the Conservatives are elected federally,” Fundytus said.
Rhodes said she is concerned about Trump’s tariffs, anticipating that they will make groceries, gas, and housing more expensive.
She said the tariffs will only add more stress as she tries to budget for living expenses and secure affordable housing.
“With everything going up it's going to make it that much harder to be able to live," Rhodes said.
