The quarter-point increase and another hike of the same size that could come in September will boost demand for rentals, force some landlords to sell and put a further damper on the construction of new rental and condo units, experts say.
to return to the bank’s target of 2 per cent. That wording raises the chance of another hike at the bank’s next rate announcement in September, according to analysts.would-be homebuyers
Some landlords will struggle to handle added financial pressure because they face mortgage renewals at higher rates, he said. While he doesn’t see a stampede of investors ditching their condos, even a small uptick in such sales means fewer units available in a rental market where demand already far outstrips supply.
But a more significant ripple effect of the Bank of Canada’s renewed rate-hiking campaign may not be felt in the rental market until 2027 or 2028. The report estimates landlords were losing an average of $223 per month on condos completed in 2022. Based on a smaller sample, it found that the math was even more challenging for investors holding units completed in the first three months of 2023, who were facing an average monthly shortfall of more than $400.
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