May 9, 2023
$3,000 for a one bedroom? Experts say this will be the norm
, BNN Bloomberg
$3,000 for a 1 bedroom, an easy target in the next 7 years: Vancouver realtor
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Canada’s red-hot rental market is likely only going up from here, experts say.
The country’s record immigration targets, alongside limited supply, have driven the average rent price of a one-bedroom condominium in Canada’s most populated areas, which include Vancouver and Toronto, to rise above $2,500 as of March, according to the latest data from Rentals.ca.
In Toronto, the average cost to rent a one-bedroom condo was $2,506 in March, marking a 22 per cent increase from the same time last year, the data showed.
“I predict the average price for a one bedroom in Toronto to rise above $3,000 by 2030,” Marco Pedri, real estate broker at Shoreline Realty Corp. Brokerage, told BNN Bloomberg in an interview on Monday.
“People see that number and find it impossible to believe, but just 10 years ago the thought of an average bedroom going for over $2,000 was unfathomable — and yet here we are,” he added.
The situation is no different on Canada’s west coast. In Vancouver, the average price for a one bedroom reached $2,743 in March, reflecting a 17.3 per cent increase year-over-year, the data showed.
“For the asking price of a one bedroom to reach well above $3,000 in Vancouver, and its surrounding areas, seems like a pretty easy target to hit in the next seven years,” Steve Saretsky, owner and realtor of Vancouver-based Saretsky Group, said.
He pointed to the rise in yearly inflation and the limited supply as the two main factors that would push rents past the $3,000 mark, though he noted wages are also likely to climb in order to combat some of the financial pressure.
“Even amid sky-high rents people find a way to make it work. It’s just that we might see people moving in together more, or choosing to live further from major cities and taking the option to live at home for longer,” Saretsky explained.
Ultimately, though, Saretsky said he does not foresee a future where parts of Canada’s housing market is affordable again, mainly because he considers it to be asset rich. The days of people reaching high-income jobs to secure homeownership is a relic of the past, he said.
“You’re no longer competing with local incomes, you’re competing with the world (foreign ownership) and generational wealth to rent, or own a home, in Canada,” he said.
The cost of Canadians being priced out of large cities could mean population stagnation in those regions, one expert noted.
“People will start to look for jobs only in areas where there is affordable housing for them,” Aled ab lorwerth, deputy chief economist at Canada Mortgage and Housing Corporation(CMHC), said.
He explained that this will come at the cost of large cities failing to continue to grow.
“The longer term concern is that we don’t see a way out of the current challenges,” he said.
The country’s record immigration targets, alongside limited supply, have driven the average rent price of a one-bedroom condominium in Canada’s most populated areas, which include Vancouver and Toronto, to rise above $2,500 as of March, according to the latest data from Rentals.ca.
In Toronto, the average cost to rent a one-bedroom condo was $2,506 in March, marking a 22 per cent increase from the same time last year, the data showed.
“I predict the average price for a one bedroom in Toronto to rise above $3,000 by 2030,” Marco Pedri, real estate broker at Shoreline Realty Corp. Brokerage, told BNN Bloomberg in an interview on Monday.
“People see that number and find it impossible to believe, but just 10 years ago the thought of an average bedroom going for over $2,000 was unfathomable — and yet here we are,” he added.
The situation is no different on Canada’s west coast. In Vancouver, the average price for a one bedroom reached $2,743 in March, reflecting a 17.3 per cent increase year-over-year, the data showed.
“For the asking price of a one bedroom to reach well above $3,000 in Vancouver, and its surrounding areas, seems like a pretty easy target to hit in the next seven years,” Steve Saretsky, owner and realtor of Vancouver-based Saretsky Group, said.
He pointed to the rise in yearly inflation and the limited supply as the two main factors that would push rents past the $3,000 mark, though he noted wages are also likely to climb in order to combat some of the financial pressure.
“Even amid sky-high rents people find a way to make it work. It’s just that we might see people moving in together more, or choosing to live further from major cities and taking the option to live at home for longer,” Saretsky explained.
Ultimately, though, Saretsky said he does not foresee a future where parts of Canada’s housing market is affordable again, mainly because he considers it to be asset rich. The days of people reaching high-income jobs to secure homeownership is a relic of the past, he said.
“You’re no longer competing with local incomes, you’re competing with the world (foreign ownership) and generational wealth to rent, or own a home, in Canada,” he said.
The cost of Canadians being priced out of large cities could mean population stagnation in those regions, one expert noted.
“People will start to look for jobs only in areas where there is affordable housing for them,” Aled ab lorwerth, deputy chief economist at Canada Mortgage and Housing Corporation(CMHC), said.
He explained that this will come at the cost of large cities failing to continue to grow.
“The longer term concern is that we don’t see a way out of the current challenges,” he said.
