Skyrocketing rent: Some Canadians saying goodbye to half their paycheque

Dated: June 23 2024

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Greetings everyone, Anahid here.

I'd like to share a brief overview of an article I came across in CTV News titled "Skyrocketing rent: Some Canadians saying goodbye to half their paycheque"  Enjoy the read and feel free to share your thoughts.  

A new report from Royal LePage reveals that many Canadian renters are spending more than half their income on housing. In Vancouver, 27% of renters face this financial strain, while in Toronto and Montreal, the figures are 19% and 10% respectively. Nationally, 16% of renters spend over half their paycheque on rent, surpassing the affordability target of one-third of income. The surge in rent prices is attributed to the post-pandemic housing crisis, immigration, and low rental vacancy rates. Tom Davidoff from UBC’s Sauder School of Business notes that many renters aspire to own homes but are hindered by high prices and interest rates.

The report highlights that while 27% of Canadian renters plan to buy a home within the next two years, 69% do not, with over half citing insufficient income as a major obstacle. Younger renters, particularly middle millennials in their 30s, are the most eager to transition to home ownership, often motivated by starting families. Despite a growing trend of renting due to the affordability crisis in the resale market, the desire for home ownership remains strong among Canadians, according to Royal LePage CEO Phil Soper.

The study, which surveyed 1,506 Canadian adults, underscores the need for collaboration between the housing industry and government to find innovative solutions to increase housing inventory, including rental units. This approach is crucial to support those most affected by the escalating market conditions. Soper emphasizes that the biggest hurdle for potential homeowners is securing the initial down payment, which requires addressing the broader issue of housing affordability in Canada.
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Anahid Shahmoradi

Your Dreams, My Dedication - Real Estate With Compassion and ResultsWith a wealth of knowledge in real estate and home staging, I specialize in helping buyers and sellers navigate the Alberta real est....

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