Saturday, April 18, 2015

Rents Rise In Hamilton

The Spec has some numbers on recent apartment rent rises in Hamilton:

"Between 2013 and 2014, Hamilton's vacancy rate fell to 2.3 per cent from 3.9 per cent, notes a city report based on Canada Mortgage and Housing Corporation data. 

The scarce supply is helping drive up rents: the average market rental unit went for $678 in 2006, jumped to $720 in 2010, and was $813 last year."

The vacancy rate dropping from 3.9% to 2.3% is quite a large drop and indicates a tight market. Hamilton's rents while increasing are a bargain compared to Burlington and Oakville, which don't have a big supply anyways. So like with housing prices, high GTA rents are spreading into Hamilton. 
Higher Hamilton housing prices are also likely driving higher rents as buying a house in Hamilton is much more expensive than five years ago (even though incomes have little changed).

Likely this will spark an exodus of people from Hamilton to places with still cheaper rents like the Niagara region and Brantford that aren't as influenced by the insane GTA housing market.

The vacancy rate moving from 3.9% to 2.3% also makes me wonder if this means Hamilton's population is growing faster now. With higher rents and housing prices, more properties that have been derelict and vacant will come on-line, especially in the lower city.

The Spec article also reports on rents in different areas. Interestingly, central Hamilton at $821 is slightly higher than the Mountain at $807 which is a sign the downtown is becoming more desirable to live in. 

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