When you reach a certain age, living with roommates (or your parents) might seem laughable. But in Toronto’s real estate market, it’s not always viable for people to move out on their own — especially if they’re single.
That’s why DailyHive crunched the numbers to find out exactly how much a single person needs to make in order to rent a place in downtown Toronto and maintain a well-rounded lifestyle. That means dining out, partying, fitness memberships, and coffee outings were all factored into the equation because — let’s be real — these things have become synonymous with Toronto living.
According to the site’s calculations, a single person needs to make a minimum annual salary of $50,000 before taxes in order to live alone in the city.
Of course, housing is the biggest expense. It’ll cost a single person a minimum of $2,394.88 per month to cover rent for a one-bedroom apartment, utilities and internet, DailyHive reports.
To get this number, the site used data from Numbeo, which compares the cost of living in global cities, and Padmapper, a rental listing site. The average rent for a one bedroom was listed as $2,054.35 and $2,270, respectively, on these sites. Taking the average of these rents, DailyHive then factored in the cost of utilities ($162.88) and internet ($70).
Toronto has the most expensive rent in Canada, according to a National Rent Report from February. Etobicoke and Mississauga came in second and third place, followed by Vancouver. Sadly, rent is continually on the rise and is expected to increase by 11 per cent this year in Toronto.
After rent, the next biggest expenses were dining out, groceries/household items, and partying. Priorities, right?
Here’s the official monthly breakdown:
Groceries/Household Items: $266.11
Dining Out: $270.00
Health and Fitness: $80
DailyHive’s calculations are realistic in that they take into account the lifestyle of living in an urban centre full of temptations. Dining out, partying, and keeping up with fitness goals are all lifestyle choices that many people aren’t willing to give up to live on their own.
However, the calculations don’t factor in monthly savings or paying off debt. So if you were planning to contribute to either of those things, you’d need to make an annual salary of more than $50,000 before taxes.
Unfortunately, more millennials than ever are filing for bankruptcy. This is due to a number of factors including large student loans, credit card debt, and the lack of stable income in today’s job market.
The good news is that the median after-tax income in Canada is $56,000, which means achieving a $50,000 annual salary in order to move out on your own is totally doable.
DailyHive’s breakdown also supports a previous study by LowestRates.ca. Last month, the latter site did a calculation of monthly expenses and similarly reported that a single Torontonian needs a minimum salary of $49,545 before tax in order to live in the city.