A new report released today shows that Canada’s rental market is worse than we thought, and it’s becoming less and less affordable for renters. Just more evidence to support why buying a home is the more cost-effective solution to housing right now.
“With 850,000 lower-rent units lost in the last decade, our rental sector is ill prepared for any downturn in the housing market,” Brad Woodside, the president of the FCM, says in the introduction to the study. “One in five renters pays more than 50 per cent of their income on housing.” — Federation of Canadian Municipalities Report
A third of Canadian households reportedly rent at this time, and only 11 per cent of homes since 1996 have been built as rentals, which makes the situation worse. In the past, it may have seemed like renting was the more cost-effective solution to housing, but recently that has not been the case. Besides, why pay someone else’s mortgage when you can pay your own?
Mortgage rates are still historically low right now, but earlier rumblings this week from the Bank of Canada signal that rates could be rising soon.
If you have any questions about getting pre-approved or pre-qualified for a mortgage, please feel free to contact me.
