'Tenants Should Be On Their Best Behaviour': Rate Hikes Hit the Rental Market

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When the Bank of Canada raised its overnight rate last week to 5%, countless Canadian homeowners found themselves having to re-evaluate their household budgets. realestate realestatenews rentalmarket renting finance

In the notoriously pricey Greater Toronto Area , rents continue to climb to jaw-dropping levels. According to the report, Toronto saw a nearly 16% annual increase for condos and apartments in June. The average rent for a one-bedroom in Toronto is now a tough-to-swallow $2,572. This figure includes everything from basement apartments to new condo developments.

So, even though interest rates — and home prices — remain relatively high, renters are still looking to enter the housing market, she says. Currently, judging from recent conversations, some GTA landlords are taking full advantage of this ability, in a few cases jacking rents as. For older buildings, only when the unit is turned over may the landlord raise the rent for the new tenant.

Walters also says he bought long ago enough that he’s not feeling the same pressure as he imagines many are. “My neighbour across the street just did a big reno and refinanced with a high variable rate with the hope that rates would decrease and they’re hurting,” says Walters. “They’re forced to rent out part of their house ASAP to compensate.”

 

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