Renting a flat in Canada is more popular than buying. Real estate prices
The number of rental housing has increased by 22 per cent in recent years. According to Royal Bank of Canada economists, rental housing prices are rising along with demand.
Over the past few years, economists have seen a decline in those wishing to purchase their homes in Canada. It's all about high prices, so there are fewer and fewer opportunities to buy an apartment or a house. It applies not only to major cities but to the whole of Canada.
Just a few years ago, renting among young people was quickly turning into the next purchase. But now that process has slowed down. In Vancouver and Toronto, there is a very high demand for housing, and not enough is being built. It leads to higher prices in the property and rental market.
An additional factor is that mortgage rates are rising. Instead of buying a house, people are likely to stay in rental apartments, which will increase the cost of the rent.
In addition, the growth of immigration supports the demand for rental housing. During the 3-5 years of living in Canada, new citizens don't buy real estate for a variety of reasons.
Rents are rising across Canada. Over the past year, average rental prices are up nearly 18% in Ontario, 15% in British Columbia and 12% in Alberta, while in Atlantic Canada, monthly rents are up a whopping 32.2% over the past year.
The average rent for a two-bedroom apartment in Quebec and Montreal is about $940 CAD per month. Monthly rents for a two-bedroom apartment in Vancouver are $2,498 CAD, in Toronto $2,370 CAD, in Victoria $2,116 CAD, in Halifax $1,530 CAD, and in Winnipeg $1,406 CAD.
Young people and low-income families suffer the most from high rent prices. On average, 500,000 to 550,000 new homes need to be built per year and mortgage rates lowered.
Aled ab lorwerth, Deputy Chief economist at the Canada Mortgage and Housing Corporation: "There is a labour shortage in the construction industry. Canada needs more skilled workers, for example, through increased immigration of people with the right skills. Authorities need to make the construction industry attractive to workers. Higher wages would also help."
The government needs to speed up the process of building, approving building permits and zoning. Changes are also needed to improve construction techniques so that building goes faster and at a lower cost.
