News Analysis
Housing supply is not keeping up with a rapidly growing population and the problem is worsening in 2023, with a downturn in home building underway due largely to higher interest rates. The government’s higher immigration targets and record-breaking year for processing immigration applications are putting greater strains primarily on the rental market.
Canada’s overall housing market is in a situation where rents are soaring but the home prices are falling. But housing affordability isn’t improving due to high mortgage rates. And higher mortgage costs are getting funnelled down to renters from landlords.
Over the past year, the average asking rent grew by nearly $200, which is up 10.8 percent, to reach $2,004 a month in March and reflects how demand is outstripping supply, according to rentals.ca….