Thu, 15 Nov 07
Montreal’s rental market is the most affordable of Canada’s five major centres, according to Canada Mortgage and Housing Corporation (CMHC)’s new rental affordability indicator...
However, this year rental affordability in Toronto is increasing, while it is declining in Calgary and Montreal and remains stable in both Vancouver and Halifax.
Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre, observed: Affordability in the rental market is increasing in Toronto this year, as the median income of renter households grows at a faster pace than the median rent for a two-bedroom apartment.
He continued: In contrast, the Calgary rental market is becoming less affordable. Although the median income of renter households in Calgary is increasing, job growth and a steady flow of people moving to Calgary are keeping renter demand strong and driving up the median rent even more.
Montreal soars despite marginal decline
Although caution must be used when comparing rental affordability across centres, Montreal has the most affordable rental market in 2007, in spite of the marginal decline noted above, followed by Halifax, Calgary, Vancouver and Toronto.
The new rental affordability indicator is used to examine trends in rental affordability within a centre, and to compare affordability across centres.
For each centre, the indicator compares the median income of its renter households against the income necessary to rent a median priced two-bedroom apartment within the centre, using a 30 per cent of income benchmark for rental costs. In general, as the indicator increases, the market becomes more affordable; as the indicator declines, the market becomes less affordable.
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