Ordinary people in Canada's British columbia have fallen into the dilemma of "can't afford to buy a house and can't afford to rent a house".
Statistics from May this year show that the national real estate market in Canada continued to cool down last month, "volume and price fell together".
Specifically in terms of trading volume, the trading volume in May fell by nearly 22% compared with the same period last year, especially from April to May, a decline of nearly 9%. From the perspective of prices, the average transaction price of residential properties nationwide in May recorded 711316 Canadian dollars before seasonal adjustment, up 3.45% from 687595 Canadian dollars in the same period last year, but the average property price after seasonal adjustment was 700428 Canadian dollars in May, down 3.8% from the 728171 Canadian dollars recorded in April.
But for the average B.C., the high price will still deter many "just needers."
Some people say, if you can't afford it, then rent it! But the bad thing is that the crisis has gradually passed on to the rental market. Rents are skyrocketing is a clear sign!
Photo credit: City news
Rentals.ca's latest Canadian Rents Report shows that after months of stagnation, average rents in the Canadian rental market saw their biggest monthly increase since 2019.
Screenshot from: Rentals.ca
Here's the look at the data: The average rent for a Property in Canada in May 2022 was $1,888 A month, up 10.5% year-over-year. This also means a monthly increase of 3.7%, the largest monthly increase since May 2019. This data includes detached houses, semi-detached houses, townhouses, condominiums, and rental apartments.
Analyzing the reasons for the soaring rents, the report writes: "During the pandemic, the demand for large-area homes is a clear trend, as more and more people need to work from home, a trend that has not dissipated in the post-pandemic era. As of now, many employers still require employees to come to the office only one to two days a week, and the rest of the time they can work from home. In addition, coupled with the sharp rise in interest rates, some renters have discouraged the idea of buying a house. ”
The report shows that BC remains the most expensive place in Canada for rent. Among the top 10 most expensive cities, BC has three cities on the list: Vancouver, Burnaby and Victoria.
Among them, the price of one-bedroom suites in downtown Vancouver rose by nearly 20% year-on-year to $2,377; Two-bedroom apartment prices rose more than 24% year-over-year to $3,495, the highest in Canada.
Burnaby's one-bedroom suite prices rose 24.1% year-over-year to $2012; The price of two-bedroom suites rose 18.9% year-on-year to $2645, ranking third in the country.
Another city on the list is Victoria. Statistically, victoria's price of one-bedroom apartments rose 13.4% year-on-year to $1,870 in May 2022; The two-bedroom suite cost $2,896, the ninth most expensive in Canada.
Screenshot from: Rentals.ca
After reading the highest, let's take a look at where is the cheapest place for rent in Canada? How cheap is it?
The report shows that condo apartments in Edmonton, Alberta, have the lowest average monthly rent of $1,357 per month, compared with $3,188 in Vancouver; Rental apartments in Regina, Saskatchewana have the lowest rentals in the country, at $993 cad. In addition, in the case of basement apartments, Saskatoon, Saskatoon, has the lowest monthly rent of $1096 PER month, while in This category in Vancouver has been as high as $2115 per month.
Screenshot from: Rentals.ca
Moreover, Vancouver, which has the highest rent in Canada, is not only the monthly rent that leads the country. Even at the cost per square foot, it's among the best.
The data shows that the rent per square meter in Vancouver is $3.87, North Vancouver is $3.62, and even the rent per square meter in New Westminster is as high as $3.55. In Metro Vancouver, the predominantly Chinese city of Richmond has a slightly lower rent per square metre, at $3.17 per square metre.
All in all, in Vancouver, B.C., including single-family homes, townhouses, apartments, condominiums, or basement suites, all types of homes are expensive to rent.
In fact, Canada's major home rental markets have all experienced significant rent increases this year. Apartments and rental apartments rose 23 percent a year in Vancouver, 19 percent in Toronto, and higher rent inflation in other smaller cities, with 26 percent in Kitchener, 25 percent in London and 20 percent in Calgary.
Not only that, but the report predicts: "In the face of increased demand, uncertainty in the owner-occupied housing market, and delays in the delivery of new supplies due to supply chain delays and labor shutdowns, it should continue to put upward pressure on rents this autumn." ”
In other words, in the second half of this year, the rent will rise!
Some say that if you're tired of paying so much rent, you can move to Saskatoon. Where a one-bedroom monthly rent of $975 is the cheapest of all 35 cities in Canada. However, it is so easy to move somewhere!
The Federation sprinkled $8.9 billion to help people ease the burden
To ease the burden of living for Canadians in the face of high inflation, Deputy Prime Minister and Minister of Finance Chrystia Freeland delivered her first important speech today (June 16) since the budget was submitted.
At the press conference, she proposed a "multi-pronged" "affordability plan". The plan outlines how the federal government intends to respond to inflation based on advance commitments. These include increased worker benefits and old-age security, children's milk payments, and dental care programs, and total spending is expected to increase by $8.9 billion this year.
Imaged from: CBC
Here are the $8.9 billion in major benefit subsidies mentioned in this year's budget and highlighted by Christia Freeland:
- Injected $1.7 billion into Canada Workers Benefit, a Canadian worker benefit. An estimated 3 million full-time minimum wage workers earn up to $1,200 in additional income through their tax returns. If calculated by household, a family is $2400 CAD.
- A one-time $500 housing affordability grant is provided to low-income people.
- By the end of the year, childcare costs for Canadian households had been cut by an average of 50 per cent.
- 10% increase in Old Age Security (OAS) for seniors over the age of 75,
- Reduce childcare costs by an average of 50% by the end of the year and to around $10 per day by 2025-26.
- Starting in 2022, free dental insurance will benefit children under 12 years of age in the first place for Canadians earning less than $90,000 a year old.
In addition, benefits will be tied to inflation, meaning amounts such as the OAS, Guaranteed Income Grant (GIS), the Canada Pension Plan, the Canadian Child Benefit and the Federal Tax GST Credit will also rise.
At the launch, Chrystia Freeland also compared Canada's economic recovery to that of other G7 countries. She said Canada has regained 117 per cent of the jobs lost during the pandemic. That's higher than the 96 percent recovery rate in the U.S., which is now just 5.1 percent. "This is the recovery of the strongest of the G7 countries."
Photo credit: CTV news
She also acknowledged that despite these positive figures, some Canada is suffering from inflation, which she attributed to the pandemic, disruptions in global supply chains and the Russian-Ukrainian conflict.
The NDP and Conservative Party have been pressuring the Liberal government for weeks. NDP leader Jagmeet Singh argues that it is not enough to re-announce the plans announced in the budget.
"If interest rates continue to rise, a quarter of Canadians will lose their homes. A quarter of Canadians go hungry because they can't afford food," Singh said.
He argues that these measures are not helping people at the moment and that the federal government needs to take immediate steps to help by providing direct financial support to families.
News Source:
https://vancouver.citynews.ca/2022/06/16/metro-vancouver-rent-increases/
https://rentals.ca/national-rent-report
https://www.ctvnews.ca/politics/freeland-to-deliver-significant-speech-on-inflation-and-the-canadian-economy-1.5949783
https://www.cbc.ca/news/politics/chrystia-freeland-major-inflation-speech-1.6490312
https://vancouver.citynews.ca/2022/06/16/canada-inflation-feds-cost-living/