Rental Demand growth outstrips home ownership growth - homeownership declines

[Thomas Beyer]

For the first time in decades, demand for rental housing is outpacing ownership, driving rent prices higher and deepening Canada’s housing affordability woes.

Between 2011 and 2016, nearly 753,000 new households were formed. About 396,000 of those were rentals, which now account for 32 per cent of the country’s homes, according to data from the 2018 Canadian Rental Housing Index.

Over the same period, the percentage of home ownership fell from 68.9 per cent to 67.8 per cent, the first drop since 1971.

https://www.theglobeandmail.com/rea...using-in-canada-now-outpacing-home-ownership/

 

[Matt Crowley]

I think it is a good think that rental rates are growing. It is a good alternative to owning despite pretty poor renter rights in most of the country. (LL can raise rents to any level).

Also, renting is a good check on price to rent ratios - right now the rent v. buy says rent in most areas of the 8 cities. Part of my bearishness as a single family / condo investor in Vancouver is the razor thin yield as rents are relatively very low in the market relative to price. But if I could get in on a development project, industrial, or office I would be interested.

Rent prices rising - yes. But a part of the problem in both U.S. and Canada has been the overconcentration on delivering top of market rentals.