“By 2030, we need 3.5 million units more than what is currently being built,” says housing expert Aled ab Ioworth
Rental rates are soaring across Canada. Over the past year, average rent prices have increased nearly 18 per cent in Ontario, 15 per cent in British Colombia, and 12 per cent in Alberta—while in Atlantic Canada rents have risen by a whopping 32.2 per cent compared to last year.
We don’t think there are an adequate supply of rental units across Canada, specifically in Toronto and Vancouver. Vacancy rates are low. First, the problem is even finding a place to rent. Then, when people are changing rental units, their rents are going up significantly.It’s part of a general pattern: there’s very strong demand for housing in those two cities, and not enough housing being built. It’s driving prices up in the ownership and rental market.
Some provinces—like B.C., Manitoba and Ontario—have rent control policies. If you’re in a rental unit and continuing to rent the same unit in a rent-controlled province, rents have probably gone up two per cent. And if you’re changing units, rent could go up more than 10 per cent. Here’s a couple of examples of how prices have gone up. From 2011 to 2021 in Montreal, the price of a one-bedroom rental has risen from $641 a month to $821.
By 2030, we need 3.5 million units more than what is currently being built. In an average year, we start building somewhere between 200,000 and 250,000 houses. We need to double that.There are a few things. We need the government to speed up the approval process for getting building and zoning permits. A lot of this has to do with the fees associated with submitting an application, which make the process lengthier and more complex.