London’s report excessive residence rents now prime components of the GTA

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The average rent for a one-bedroom apartment in London soared in August, dwarfing even some parts of the Greater Toronto Area.

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September 17, 20222 hours ago3 minutes read A sign for rent. (NICK BRANCACCIO/Postmedia Network

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The average rent for a one-bedroom apartment in London soared in August, dwarfing even some parts of the Greater Toronto Area.

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According to Rentals.ca’s latest market report, landlords in London charged an average of $1,783 last month – a record – for one-bedroom units, up 36.9 percent from a year ago.

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That price surpassed for the first time since Rentals.ca, a website used by landlords to advertise their properties, which collects rental data from communities like Scarborough on Toronto’s east side ($1,673), Hamilton ($1,696) and Kitchener ($1,723). end of 2018

According to Rentals.ca data, Vancouver leads the country at $2,574, followed by downtown Toronto’s Old Town at $2,329.

Strong demand coupled with supply unable to meet the growing needs of the market is the main factor driving rents in recent years in London, the fastest growing region in Ontario according to the latest census data has driven up.

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But other factors also play a role.

One of them, experts say, is the Bank of Canada’s recent hike in interest rates in an attempt to fight inflation.

“Rising interest rates are keeping a lot of people out of the home (buy) market,” said Paul Danison of Rentals.ca.

“When interest rates go up, it means a significantly higher monthly payment for people buying a home, so some people stay on the sidelines and don’t jump into the housing market.”

  1. Work on a new building on Baseline Road, west of Wellington Road in London, will resume on Friday 2 September 2022.  Musawer Muhtaj, a senior analyst at Canada Mortgage and Housing Corp., says there is not enough new rental unit construction in London to meet demand, which will keep upward pressure on rents.  (Derek Ruttan/The London Free Press)

    This is why London rents are rising while property prices are cooling

  2. The median asking price for a two bedroom unit in London in May was $2,023, according to the latest snapshot from Rentals.ca and Bullpen Research and Consulting Inc.

    Rents in London continue to rise even as house prices fall

The average resale price of a home in London was $648,000 in August. With an adjustable-rate mortgage and a $39,000 down payment, that would result in a monthly payment of $3,450.

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Although the COVID-19 pandemic has provided tenants with a brief respite and local rents have remained relatively stable, the return of students to face-to-face classes at Fanshawe College and Western University is also contributing to rising rents and putting additional pressure on one already tight market.

Prices can also be affected by new stock entering the market as new units are usually rented at higher prices than older ones. The nationwide rental price controls for apartments built after 2018 have also ended.

But the key is that more apartments are needed to cool the city’s rental market, Danison said, noting that London is not alone as the national median rent for all properties also set a record at $1,959 in August.

“There’s just not enough supply out there for all the demand,” he said. “We definitely need care at all levels. . . Any kind of supply is helpful.”

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London Food Bank is noticing the pinch on its customers caused by higher rents in the city, said co-executive director Glen Pearson.

Rental costs are the No. 1 reason behind the increase in users at the panel, he said. More problematic, however, is the fact that rents are also creating a new breed of user, Pearson said.

“A huge increase in the number of people coming to Tafel are people who are working, people who are able to pay their rent but now can’t afford the cost of food,” he said, adding He added that he was concerned that the housing crisis will only get worse unless more decisive action is taken.

“The people that come to the panels that work, they’re the canaries in the coal mine,” Pearson said.

“Perhaps we are facing a whole new economic reality. . . and I think we need to start showing a lot more urgency about how we’re going to solve this problem.”

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