Renting vs. Owning in Ontario: What You’ll Pay

When comparing the cost of living in an apartment vs house in Ontario, the biggest factor is usually the rent or mortgage payment. According to recent data, the average rent for a 2-bedroom apartment in Ontario is around $1,800 per month. The average rent for a 3-bedroom house in Ontario is $2,450 per month. Mortgage costs for a typical home purchase would be similar, depending on your down payment and interest rate.

Of course, housing costs are just one piece of the puzzle. Utilities, maintenance, and other monthly expenses also play a big role in the overall cost of living. Let’s break down some of the key differences between renting an apartment and owning a house in Ontario.

Cost Comparison – Apartment vs House

Here’s a side-by-side breakdown of common monthly costs in Ontario:

Expense	2BR Apartment	3BR House
Rent/Mortgage	$1,800	$2,450
Utilities (Electric, Gas, Water)	$150	$250
Internet	$60	$60
Renter’s/Homeowner’s Insurance	$20	$80
Maintenance & Repairs	$0*	$150
HOA Fees	$0	$250
Total	$2,030	$3,240

*Included in rent. Estimates are for mid-range units with typical usage.

As you can see, the total monthly cost for a house is about $1,200 higher than an apartment in Ontario, assuming comparable size and quality. The biggest drivers are the higher rent/mortgage payment, increased utility costs, and additional expenses like insurance, maintenance, and HOA fees.

Utility and Upkeep Differences

In general, houses tend to have higher utility and maintenance costs than apartments. Some key differences:

• Houses have more space to heat and cool, leading to higher electric and gas bills
• Watering a lawn and caring for a yard increases water usage
• Older houses may have less efficient appliances and HVAC systems
• Homeowners are responsible for all repairs and upkeep, while apartments handle most maintenance

In Ontario, many homes use swamp coolers which can help reduce A/C bills in the summer months. Newer apartment complexes often include trash service and sometimes even internet in the monthly rent. So while houses typically come with higher utility costs, there may be some savings opportunities depending on the specific property.

Lifestyle Tradeoffs

Of course, the decision between an apartment and a house isn’t just about dollars and cents. There are also important lifestyle factors to consider:

Apartments offer a low-maintenance, lock-and-go lifestyle with amenities like a pool, gym, and on-site maintenance. They’re often located in more walkable areas closer to dining and entertainment. However, you’ll have less space and privacy, with potential noise from neighbors. Most apartments have pet restrictions and charge additional pet rent.

Houses provide more space, privacy, and room to spread out, making them appealing for families. You’ll have your own yard and more freedom to customize the property. However, that comes with added responsibilities like yard work, maintenance, and higher utility costs. Parking and commute times may be less convenient than apartments. Many Ontario residents choose apartments for walkability and convenience, while families prefer houses for the extra space and yard.

Which Is Cheaper Long Term in Ontario?

While renting an apartment is cheaper on a monthly basis, owning a home can be more cost-effective long term. Let’s say you stay in a 2BR apartment for 5 years at $1,800 per month. Assuming 3% annual rent increases, you’d spend a total of $115,855 on rent over that period.

If you bought a $400,000 house with 10% down and a 3.5% interest rate, your monthly mortgage payment would be around $2,200 including taxes and insurance. Over 5 years, that adds up to $132,000. However, you’d also build nearly $50,000 in home equity over that time. Plus, your mortgage payment would stay fixed while rents go up. So even though you’re paying more per month for the house, you’re building wealth rather than giving money to a landlord.

The longer you stay in the home, the more financially advantageous owning becomes, especially if the property appreciates in value. But renting can still make sense if you value flexibility and plan to move within a few years. Ultimately, the right choice depends on your financial goals, lifestyle needs, and how long you plan to stay in Ontario.

FAQs About Housing Costs in Ontario

How much more does a house cost per month?
On average, a house in Ontario costs about $1,200 more per month than an apartment when you factor in the higher rent/mortgage, utilities, insurance, maintenance, and HOA fees.

Do houses always have higher utility bills?
Houses typically have higher utility costs than apartments since they have more space to heat and cool. However, factors like the age and efficiency of the home, as well as lifestyle habits, also impact utility expenses.

Are apartments cheaper even with pet fees?
If you have a pet, you’ll likely pay a pet deposit and additional pet rent in an apartment. But even with those costs, apartments are still usually cheaper overall than houses. Just be sure to factor in any pet fees when budgeting.

Making the Right Housing Choice in Ontario

As this breakdown shows, apartments in Ontario tend to be significantly cheaper than houses on a monthly basis. The average renter can expect to save around $1,200 per month compared to owning a home, thanks to lower rent, utilities, and maintenance costs. That can add up to major savings over time.

However, houses offer more space, privacy, and control, which is appealing to many families and long-term residents. Despite the higher monthly costs, owning a home can be a smart financial move if you plan to stay for several years and can comfortably afford the payments.

Ultimately, the right choice depends on your budget, lifestyle, and goals. Be sure to consider all of the costs and tradeoffs before making a decision. If you need help crunching the numbers, try our Monthly Budget Examples for Ontario Residents. And don’t forget to factor in additional homeowner costs like property taxes and HOA fees.

Whether you choose to rent or buy, Ontario offers a variety of great apartment and house options to fit your needs. With a clear understanding of the costs, you can find the perfect place to call home in this vibrant SoCal city.