Real Estate

Canadian Rental Rates Rise At Fastest Pace In 30 Years

  • Last Updated:
  • Mar 6th, 2019 11:29 am
26 replies
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Nov 5, 2018
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Scarborough
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Mar 13, 2017
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neilsmith43 wrote:
Mar 4th, 2019 1:17 pm
Bears, don't buy and keep renting.lol
No, it's better than that .. Bears who hugged Wynne for rent controls can thank her for this new paradigm.

If there's no money to be made in developing rental units, there won't be any rental units developed thus constricting supply beyond all other forces at work.

Best those happy renters can hope for now is to stay put at whatever rent they scored at a prior time. Never mind home ownership running away; they can't even upgrade to a better unit now.
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Jun 1, 2017
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1cat2dogs wrote:
Mar 4th, 2019 1:54 pm
No, it's better than that .. Bears who hugged Wynne for rent controls can thank her for this new paradigm.

If there's no money to be made in developing rental units, there won't be any rental units developed thus constricting supply beyond all other forces at work.

Best those happy renters can hope for now is to stay put at whatever rent they scored at a prior time. Never mind home ownership running away; they can't even upgrade to a better unit now.
How did Wynne impose the rent control? How did she increase minimum wage? How did she make the numbers? Was she crazy to make the numbers just for election?
Last edited by neilsmith43 on Mar 4th, 2019 6:10 pm, edited 1 time in total.
Sr. Member
Mar 13, 2017
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neilsmith43 wrote:
Mar 4th, 2019 2:43 pm
How did Wynne import the rent control? How did she increase minimum wage? How did she make the numbers? Was she crazy to make the numbers just for election?
Not sure I understand the question; how did Wynne import the rent control? - do you mean impose? If so, her policy stripped units built post '91 of their exemption status which stopped the development of new rental units in their tracks.

As for her state of mind, she exploited her alt-left base with hopes and dreams of nonsense.
Newbie
Aug 5, 2018
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When did Wynne expand the rent control - 2017? Last time I checked it takes a few years for a build so new rental develooments shouldn't be a factor yet.

Rent is linked to the carrying cost of a property. Wouldn't the rapid rise of real estate prices be the greater driver?
Penalty Box
Aug 11, 2005
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landlords have been begging tenants to stay in York region. Most people I know in is area have had their rent stay the same
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Deal Fanatic
Feb 29, 2008
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We really need to go back and dig up the threads on rent control and what people were saying. The EXACT thing I said would happen.....has happened. I'm amazed how people are here still not understanding why rents have gone up.

Renter Bears who were arguing back then might as well call Wynne Mommy.
Sr. Member
Mar 13, 2017
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Staffah wrote:
Mar 4th, 2019 5:08 pm
When did Wynne expand the rent control - 2017? Last time I checked it takes a few years for a build so new rental develooments shouldn't be a factor yet.

Rent is linked to the carrying cost of a property. Wouldn't the rapid rise of real estate prices be the greater driver?
There were several developments underway that converted use to condo once the Wynnemiester started talking rent controls. Now you have 1000s of landlords independently figuring out how to maximize yield on their 400sf gems minted by Wynne. Try creating policy to govern and police all these independents .. impossible. So much easier to do it with a single landlord, who you can corner into being a slumlord - https://torontoobserver.ca/special-repo ... ad-enough/
Newbie
Aug 5, 2018
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The first link was of a rental plan in 2017. The extra supply wouldn't be a factor today as it wouldn't be done.

The second link was of a poorly run operation that began repairing violations prior to Wynen 's change.

I'm not arguing that rent control doesn't have an impact of supply. However, developments take time and ultimately the effect is delayed.

Why can't we acknowledge the link between price and rent on this site?
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Dec 13, 2016
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Staffah wrote:
Mar 4th, 2019 5:08 pm
When did Wynne expand the rent control - 2017? Last time I checked it takes a few years for a build so new rental develooments shouldn't be a factor yet.

Rent is linked to the carrying cost of a property. Wouldn't the rapid rise of real estate prices be the greater driver?
It really has nothing to do with developments. I was checking around my area (waterfront) when the rent control was introduced and just about every landlord raised the prices overnight out of fear.

Example - Studios were renting for $1,250 to $1,325. After rent control $1,650 - $1,900
Sr. Member
Nov 10, 2017
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And existing tenants have iron grip on their current lease after rent control resulting less supplies in the market. Also, landlord will increase its rent to the max in between tenants due to rent control.
Newbie
Aug 5, 2018
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It's the chicken or the egg dilemma. The sale volume was high during the price build-up, which means there are a number of new landlords and/or speculators in the market. Do they want to rent at a significant loss? Some are under water because of buying decisions, down payments etc., but at the same time trying to minimize. So wouldn't rent naturally follow price?

At $1650-$1900 as the above poster mentioned you are basically covering the mortgage. No landlord between tenants would ignore what new units and landlords are successfully renting at. Not to mention the population increase has removed units from the market reducing supply to a more meaniful extent.

Psychology of change would have played an effect for astute landlords and provided a blame for them to abruptly increase the rent of existing tenants. However, I still feel with number of new condo units and turnovers Has driven price.

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