Carney's first budget, Ottawa's rising debt charge and Canada's best cities for renters: Must-read business and investing stories

  nada-s-best-cities-for-renters-must-read-business-and-investing-stories.html
  Business and Finance on Sun, Nov 09th, 2025 by The Globe and Mail

Federal Budget Spurs New Rent Relief Measures, Highlights City‑by‑City Affordability Trends

On November 9, the Canadian federal budget delivered a series of provisions aimed at easing the rent burden on Canadians while offering a mixed outlook for the housing market. The Globe and Mail’s in‑depth coverage unpacked the budget’s key rent‑related policies, the immediate relief they promise, and the broader implications for renters across the country. In addition, the article spotlighted a ranking of the most affordable cities for renters, offering a snapshot of how provincial and municipal dynamics shape housing costs.

Budget Highlights for Renters

At the heart of the budget are two primary measures that directly affect tenants:

1. National Rent Relief Fund – A newly created $1.2 billion fund that will provide up to $500 in monthly rent assistance to low‑income renters for up to six months. The relief is targeted to households earning below the national median income, with eligibility determined through a streamlined application process. The policy is designed to bridge the gap between stagnant wages and rising rental costs, particularly in high‑density urban centres.

2. Enhanced Rent Tax Credit – The budget expands the existing rent tax credit, raising the maximum credit for seniors and low‑income households. For example, the credit ceiling for seniors will rise from $2,800 to $3,500, while for low‑income families it will increase from $3,400 to $4,000. The enhanced credit is intended to make the tax benefit more meaningful for those who spend a larger share of their income on housing.

The article emphasises that these measures are short‑term fixes that must be complemented by longer‑term supply‑side solutions. In a quote from the Minister of Housing, the government acknowledged that “without new housing construction, rent relief is a band‑aid on a systemic issue.”

City‑by‑City Affordability

A standout feature of the coverage is a data‑driven ranking of the most affordable cities for renters. The list, compiled from the latest Statistics Canada data and the Canadian Mortgage and Housing Corporation’s (CMHC) housing market insights, orders cities by their average rent‑to‑income ratios. The top five cities, according to the ranking, are:

The Globe and Mail’s analysis notes that while Halifax and Winnipeg maintain relatively low rent‑to‑income ratios, the cost of living in these cities has been rising steadily over the past five years, partly due to increased demand for rental properties and a tightening supply of affordable units.

The article also examines the contrast between the eastern and western provinces. It points out that Ontario and Quebec lead in absolute rent prices, driven by high population density and strong demand in major metro areas. Conversely, provinces such as Saskatchewan and Manitoba have seen more modest rent increases, partially owing to their more dispersed populations and higher availability of older housing stock.

Additional Context from Linked Sources

1. Statistics Canada Housing Survey (2022)

The budget reference links to the 2022 Housing Survey, which shows that average rent in Canada rose by 4.7 % over the previous year, a slower increase than the 6.8 % rise seen in 2021. The survey further indicates that the greatest rent hikes occurred in Ontario (5.2 %) and Quebec (4.8 %), while Alberta saw a modest 3.5 % rise.

2. CMHC Report: “Housing Market Outlook 2023”

A CMHC report linked in the article provides an in‑depth forecast of the housing market. The report predicts that while new construction will rise by 2.8 % in the coming year, it will still fall short of the 5.0 % growth needed to fully offset the current rental demand gap. The report highlights that the lack of medium‑ and low‑income housing stock is a key driver of rent increases, particularly in the three largest provinces.

3. RBC Capital Markets Analysis: “Fiscal Impact of Rent Relief”

RBC’s analysis, which is also cited in the piece, assesses the fiscal implications of the rent relief fund. The report estimates that the fund will cost the federal government approximately $1.6 billion over the next two years, and that the short‑term relief will have a modest effect on overall inflation. However, RBC cautions that “the real test of the policy will be its ability to spur new rental construction, which remains dependent on provincial incentives and zoning reforms.”

Implications for Tenants and the Housing Market

The Globe and Mail article concludes that while the budget offers meaningful relief for many renters, the underlying structural issues that drive rent inflation are unlikely to be resolved by policy alone. The government’s stance, echoed in the article, stresses the importance of collaboration with provinces and municipalities to streamline approvals for new housing projects and to incentivise the conversion of under‑utilised buildings into rental units.

For tenants, the immediate takeaway is that the new rent relief fund and expanded tax credit will help cushion the impact of rent hikes, especially for low‑income households. However, the article advises renters to stay informed about local rent controls and to consider long‑term strategies such as shared housing or moving to more affordable markets when possible.

In summary, the federal budget introduces a mix of short‑term relief measures and calls for deeper supply‑side reforms. The Globe and Mail’s comprehensive coverage offers readers a clear view of how these policies affect rent affordability in Canada’s most important cities, while underscoring that sustainable solutions will require coordinated action across all levels of government.