City of Hamilton experiencing extreme rent inflation
- Bennett Swan
- 28 Nov 2019
Recently, a report had surfaced stating that Hamilton property value is at an all-time high. The idea of a sellers’ market was exciting for Hamilton property owners, and the buzz around Hamilton as an attractive location for home owners was only good news.
But what about Hamilton’s home renters?
The city’s Social Planning and Research Council says that Hamilton is going through a “rental crisis”
Rent prices have increased by 21% from 2015 to 2019, that’s more than three times the rate of inflation. Evictions have also shot up to 150 last year from 95 in 2015.
Unfortunately, Hamilton seems to be facing a similar fate that many cities in Ontario have faced in recent years. The beauty of Hamilton and its ongoing urban development is finally being recognized and getting the credit it’s worked so hard for. However, the consequences of this credit are coming in the form of new apartment buildings with exceptionally high rent.
A new series on #HamOnt rental housing starts today with 3 bulletins on rising rents in Hamilton and its neighbourhoods and rising rates of L2 eviction notices accelerated by Ontario's lack of rent regulations when units turnover (unlike in Quebec).https://t.co/hnJbJSQDwC pic.twitter.com/nu124XOxWU
— SPRC Hamilton (@SPRCHamOnt) November 28, 2019
Real estate laws ensure that the rent of a current tenant remain the same as long as they live in their same property. The issue arises when the property becomes vacant and the owner relists it at a higher price.
Property value usually comes as a result of high demand and low supply. Sadly, although the addition of new buildings increases the supply, the prices have still stably increased.
As new apartment properties continue to be built, and old buildings continue to receive renovations, the property owners will continue to demand high prices for these properties.
Certainly this rent increase serves well for the real estate market, and perhaps the Hamilton economy as a whole. The question at hand is: at what cost?
Comments 0
There are no comments
Add comment