Rents, finances and dating have changed. Is two still cheaper than one? | Canada Voices

After years of crashing each other‘s virtual calls and tiptoeing around a glass encasement (I think they call it a “bedroom” in downtown Toronto) while one of us was up early or the other working late, my partner and I finally decided: We had outgrown our 600-square-foot condo.

For a couple looking to move, plummeting national rents would seem promising. In practice though, the most meaningful drops and enticing perks – utility discounts, gift cards, free Wifi – mostly apply to studios, one-bedrooms and anything best suited to one person.

When it came to upsizing to a two-bed, two-bath rental in midtown, we were surprised to find ourselves in the middle of a bidding war last week, one that ultimately cost us a modest $50 monthly bump above asking.

Our new space comes with double the rooms (and a 77.5-per-cent increase in costs) compared to our current one, and boasts such luxuries as doors instead of see-through partitions, and drawers for food and dishes that no longer have to double as decor.

Still, I couldn’t help but ogle at some of the roomy studios – even one-bedrooms – now crowding our building’s listings, often at prices equal or lower than our split rent.

This got me thinking: Are relationships still as financially advantageous as they once were, or – as cliche as it sounds – is love the one meaningful return?

According to EQ bank, roughly half of coupled Canadians who responded to a survey released this week said financial considerations play a bigger role in their decision to stay in a relationship than in the past.

More concerning: Nearly a quarter of singles said they feel pressure to find a partner for financial reasons now more than romantic ones.

And yet, the number of partnered Canadians who say spending is often a source of conflict in their relationship also sits high at one-third, BMO recently found. Different levels of income are building relationship tensions for 27 per cent of those who responded to their recent poll – a percentage point jump from a year ago.

Though Canadian singles still bear most of the burden when it comes to debt – accounting for 44 per cent of insolvency filings last year – a bigger share now involve two-income households. They accounted for 23 per cent of insolvency filings, the highest level since 2017.

One analysis on the singles tax found that this group pays 45 per cent of their income on rent given that the average cost of an apartment or condo was $2,105 as of November, while net incomes hovered around $56,400. But rents for smaller units continue to fall faster than larger ones, and that average skews things by including a wide range of flats.

When looking at studios and one-bedroom units – which sat at $1,491 and $1,761 around the same period – that number falls to 34 per cent (though still higher than the recommended 30).

Studies have consistently shown that single people have more autonomy in their spending, including budgeting and investment, and spend less on essentials such as food (currently a leading driver of inflation).

Let’s be clear: the “singles tax” is still very much real. Couples have tax advantages through income splitting and spousal RRSP help while Canadian singles find saving for retirement a near-impossible task. Those in their late 20s and early-30s still have a much easier time buying that elusive first home with two incomes.

But it’s important to note that many of those disadvantages count more at certain stages of life and love than others. How has being single or coupled weighed on your finances in ways you didn’t expect? Have you recently changed apartments or rentals – did you manage to get a better deal? Drop me a line at [email protected]

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