Rents to continue to grow, but economy expected to grow in 2014: CMHC
Anne Marie Shaker, new market analyst with the Canada Mortgage and Housing Corporation, spoke at the “Tools for Rural Housing Development” conference at the Perth Civitan Club hall on Thursday, Feb. 7. She detailed the expected trends in the housing market for the year ahead, both locally and across the province.
February 20, 2013
PERTH - While the supply of new rental units will remain flat this year, rents will continue to grow, but only moderately.
That was the message from Anne Marie Shaker, new market analyst with the Canada Mortgage and Housing Corporation at the “Tools for Rural Housing Development” conference at the Perth Civitan Club hall on Thursday, Feb. 7, as she detailed the expected trends in the housing market for the year ahead, both locally and across the province.
While rents will continue to rise, there will be pressures on affordability, and the overall housing market in Ontario will slow or flatten, but it is expected to pick up in 2014.
Specifically, while vacancy rates are up, rents are also up by 2.7 per cent. The average rent in Mississippi Mills, for example, for a two-bedroom apartment, was $807 a month.
“(While) the Ontario housing market is slowing, the economy remains robust, and is expected to pick up,” said Shaker. She predicted that “higher rents will pressure affordability in Perth,” and that, “there is a shift towards more multi-unit dwellings because they are more affordable.”
Interestingly, across the province, while home sales were down in 2012, prices inched up, and this is the first year that housing start numbers have been above average since 2008.
Other demographic changes, and the issue of student debt and youth employment, are also affecting the housing market.
“A lot of young adults are choosing to stay at home longer,” said Shaker.
In Perth, however, while the overall population of Lanark County declined from 2006 to 2011, according to Statistics Canada, the 25 to 54 age group declined as well, but all other age groups saw their numbers increase. In Perth, 54.4 per cent of the housing stock is made up of single, detached homes, while 2.8 per cent of the stock is designated as seniors residences.
“There is a great potential for seniors residences,” said Shaker. “It is a nice place to retire in, far away from the hustle and bustle,” she said of Perth.
“Single, detached (homes) remain the most popular smaller centres, but multi-units are gaining popularity,” said Shaker.
Sales in Perth grew in 2012, but so too did prices.
Throughout Ontario, affordable housing starts have been on the decline since 2009, with lone parent families being the most in need, and one person (female) seniors following closely behind in terms of need.
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