Many Canadians are wondering if rent prices will decrease in 2023 considering the record rental rates. As of August 2023 the average rent, in Canada reached $2,078 showing the price growth in the three months. The increasing rental costs are a concern for people and experts have shared their thoughts on what to expect in the rental market for 2023.
One prediction worth noting is from Realtor.com, which suggests a decrease of 0.9% in rent prices for 2023. However not everyone agrees with this forecast. Other sources like Buttonwood Property Management foresee a housing market by 2023 but mention a significant drop in house prices rather than rental rates.
On the hand data from Rentals.ca and Urbanations September report contradicts the view, for renters. The report reveals that as of September 2023 the average rent stood at $2,149 indicating an over 11% increase compared to the year.
The increase, in costs is mainly attributed to the interplay between supply and demand which has been further fueled by the interest rate hike by the Bank of Canada and a surge in post secondary students securing rental accommodations ahead of the upcoming fall semester.
The main issue lies in the fact that there aren’t incentives for landlords to lower rent prices. Even if there is a decrease in owning properties costs landlords are likely to maintain current rent prices as long as market rates remain high.
The trajectory of rent prices is made uncertain due to the inherent unpredictability of the rental market, which has experienced significant fluctuations recently. Economic conditions, interest rates and supply and demand all play a role in this landscape making it challenging to predict how the rental market will unfold.
As for whether rent prices will decrease in Canada in 2023 the outlook remains unclear. The market is presently saturated with rent prices. While some projections suggest a potential decrease others indicate an ongoing upward trend. Given these intertwined factors shaping the markets dynamics it becomes difficult to navigate and make predictions, about its future.Looking ahead, to 2023 it is clear that renters, landlords and industry participants need to take an approach in order to make choices in the Canadian rental market.
Links;
- https://buttonwood.ca/rental-rise/
- https://dailyhive.com/canada/national-rent-report-august-2023
- https://ca.finance.yahoo.com/news/housing-market-2023-rent-prices-113043272.html
- https://www.cbc.ca/news/business/rentals-ca-urbanation-september-1.6995438
- https://www.reddit.com/r/PersonalFinanceCanada/comments/10kd8bg/possible_scenarios_in_which_rent_could_go_down/
- https://www.noradarealestate.com/blog/rental-prices/
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