Toronto recorded the highest rate of rent arrears in Canada last year, with nearly 11% of rental households reporting unpaid payments, according to Canada Mortgage and Housing Corporation (CMHC).

The federal housing agency released its Rental Market Survey (RMS) on Thursday, which looked at rent arrears for the first time, in addition to national vacancy rates and rent costs in 2020.

CMHC said while there were increases in arrears across the country due to COVID-19 last year, Toronto recorded the highest arrears rate, with 10.68% of units — 34,858 — in arrears and 0.92% of rent, which is approximately $55 million, in arrears.

Job losses felt in the service and hospitality sectors contributed to the region’s arrears rate, as these industries tend to pay lower wages and employ younger workers — which are key characteristics of typical renter households.

“The pandemic disproportionately affected lower-paid workers in the hospitality and service sectors,” said CMHC. “These numbers are reflective of a larger share of population in Toronto relative to the rest of Canada, with a greater concentration of workers in these industries.”

Among all provinces, Ontario posted the highest arrears rate in Canada, with 10.18% of apartment units and 0.81% of rent (approximately $87 million) in arrears as of October 2020.

Continue to read on: TORONTO STOREYS