Even with stabilizing home prices, rising interest rates are causing an on-going erosion of housing affordability in Canada.
Affordability is a well-established problem for young, millennial, first-time buyers. As markets have over heated and home prices have soared they have struggled to put together ever increasing down payments while meeting ever tougher borrowing requirements. It is also shaping up to be a problem for Canadian seniors.
According to a report from DBRS, older Canadians are facing skyrocketing rents for seniors’ housing as baby boomers sell their homes and move into assisted living and care facilities.
Last year the national average rent for seniors’ housing was about $2,800 a month. That is currently increasing at a rate of 4.7% a year – more than double the rate of inflation. At that rate the average rent will be a very pricey $4,000 per month by 2025.