Renters are feeling the pinch nationwide — these five charts break it down

Rising rents across the country have made it difficult for many Canadians to obtain housing that fits their budget.

Rising house prices are due in part to higher interest rates, which has cooled the home buying market and increased the strain on rental housing.

Here are five charts that show some of the numbers behind the problem.

rent bounces

After pandemic drops in 2020 and 2021, Canadian rents are rising again. The median rent for all property listings in Q2 2022 was $1,750, up 7% from the same period last year.

Properties such as detached houses, detached houses, townhouses, condominiums, rental apartments, and basements are posted.

The year-over-year growth trend in Q2 2022 continues. Nationwide median rents have also increased year over year in the last two quarters.

However, rent prices across Canada have yet to reach pre-pandemic levels, with median rents reaching $1,825 in the fourth quarter of 2019.

British Columbia has the highest average rent growth, with average rents up nearly 25% year-over-year. Meanwhile, in Nova Scotia, he saw a double-digit increase throughout the pandemic. In 2021, the state business development agency launched a marketing campaign to attract remote workers. In 2022, the state introduced a new tax for non-resident homeowners.

income vs. rent

Canada Mortgage and Housing Corporation defines “affordable” housing as shelter costs less than 30% of household pre-tax income. Taking into account rent and utility costs, CBC News calculated how much a household would have to earn to keep the average cost of a two-bedroom apartment below that threshold.

In Vancouver, average monthly rent for a two-bedroom apartment has hit a staggering $3,597, and a household’s total income must exceed $150,000 for that rent to be considered affordable. In Toronto, a household must earn more than her $135,000.

Housing costs vs. everything else

An analysis of the Consumer Price Index (CPI) shows how housing has hit Canadian wallets. The Consumer Price Index measures the price changes over time for goods and services such as food, clothing, transportation, health care, recreation, and of course housing.

Prices tend to rise over time in the economy, but shelter costs are rising at a faster rate than everything else we buy.

For most of 2002-2004, “everything else” costs rose at a higher rate than housing costs.

However, in late 2004, housing cost growth began to outpace all other cost increases. That trend has continued since then, with the exception of the August 2005 and He September periods.

Roommate households are popular

Some people moved to live with roommates or roommates to reduce rent. has – is the fastest growing household type in Canada.

While still only a small percentage of all Canadian households (4%), the 663,835 roommate households in 2021 are up 54% from 2001.

Renters are feeling the pinch nationwide — these five charts break it down

Source link Renters are feeling the pinch nationwide — these five charts break it down

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