HOME PRICES + RENT GOING UP

Government projections suggest an additional 1.3 million more homes are needed to level out supply and increasing demand. Various factors are pushing this housing demand, most notable is a population increase outlined in the Household Formation and the Housing Stock report from the Parliamentary Budget Officer, which states that “Canada’s population grew by 1.2 million people (2.9 per cent)—the highest growth rate since 1957”. The increase in population is driving up housing demand, which also leads to land prices increasing compared to previous years—costs that ultimately add more dollars to a final home price. Match that with rental prices continuing to climb, and it’s all adding up to the right time to start paying your own mortgage instead of someone else’s.