12-23-2018, 12:21 PM
Yesterday's issue of the Record had a front-page story on rental costs:
https://www.therecord.com/news-story/909...oo-region/
Overall, it's a good article, although I think it's a bit lacking in focus: it starts off with a discussion of rental cost increases, and then digresses into the need for affordable housing. Both are worthy topics, but I think they would have been better served by two separate articles. The current one is a bit rambling.
One issue I had with this was their interpretation of the rental cost data: the CMHC data says average rent in the region rose from $870 per month in 2012 to $1,042 in 2017, with an 18% increase for the average 1BR unit and a 19% for the average 2BR unit. The implication is that renters (who have not moved in that period) have seen their rents go up early 20%, well above inflation -- and in spite of rent controls.
But what the article does not mention is that the new rental units added in that period (4,700 units, or about 15%) tended toward the higher end of the spectrum, with rental developments such as Barrel Yards, Princess St and Trio (as well as higher-end student housing in the university area). These would skew the average even if the existing units stayed the same price. The reality is that there have been some rent increases in the existing units, but not 20%. And new units have been on the high end of the range, not affordable (or even attainable/mid-market).
The mid-market situation should be improving in the near term, with significant developments due to start in Kitchener (Vive's Market Flats, Margaret/Victoria and Queen St S projects, Drewlo's east-end project).
Affordable housing … that's a different challenge. And worthy of its own discussion.
https://www.therecord.com/news-story/909...oo-region/
Overall, it's a good article, although I think it's a bit lacking in focus: it starts off with a discussion of rental cost increases, and then digresses into the need for affordable housing. Both are worthy topics, but I think they would have been better served by two separate articles. The current one is a bit rambling.
One issue I had with this was their interpretation of the rental cost data: the CMHC data says average rent in the region rose from $870 per month in 2012 to $1,042 in 2017, with an 18% increase for the average 1BR unit and a 19% for the average 2BR unit. The implication is that renters (who have not moved in that period) have seen their rents go up early 20%, well above inflation -- and in spite of rent controls.
But what the article does not mention is that the new rental units added in that period (4,700 units, or about 15%) tended toward the higher end of the spectrum, with rental developments such as Barrel Yards, Princess St and Trio (as well as higher-end student housing in the university area). These would skew the average even if the existing units stayed the same price. The reality is that there have been some rent increases in the existing units, but not 20%. And new units have been on the high end of the range, not affordable (or even attainable/mid-market).
The mid-market situation should be improving in the near term, with significant developments due to start in Kitchener (Vive's Market Flats, Margaret/Victoria and Queen St S projects, Drewlo's east-end project).
Affordable housing … that's a different challenge. And worthy of its own discussion.