The rise in rental prices is attributed to a number of factors, including low vacancy rates, increased immigration and high interest rates.
Ben Myers, president of Bullpen Research & Consulting Inc. says, with immigration rates at a record high and growing, there’s simply not enough supply to keep up with the demand. And, thanks to the mortgage stress test, there’s not a lot of credit availability to help homebuyers. So, rental demand is increasing and so too is the cost of renting.
According to the CMHC, the national vacancy rate is the lowest it’s been since 2009 at 2.4 per cent.
“The decrease in the vacancy rate was attributable in part to the strong increase in international migration. This factor, combined with the growth in youth employment and the aging of the population, drove up demand for rental housing.” Aled ab Iorwerth, deputy chief economist at CMHC said in a statement.
In Toronto, the issue is about more than affordability. Dr. Richard Florida, professor and Director of Cities at the Martin Prosperity Institute at the University of Toronto’s Rotman School of Management says the real issue is inventory.
“We need to build a lot more rental housing at each and every price point,” he said.
Of course, that is the plan. Problem is, Toronto needs more rental housing now, not 10 years from now.
Steve Axford grew up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougars Hockey Team alumni as well as a Victoria Shamrocks (intermediate) alumni. During his time....
301 -1321 Blanshard St
Victoria, BC V8Z1J9 250-858-8947
Should you require assistance in navigating our website or searching for real estate, please contact our offices at 250-858-8947.
Data provided by: Victoria Real Estate Board 3035 Nanaimo Street, Victoria, British Columbia V8T 4W2
All information displayed is believed to be accurate but is not guaranteed and should be independently verified. No warranties or representations are made of any kind.
By setting up an account you agree to receive updates on listings by these means.