Many existing Hamilton home owners are happy. They have seen the value of their homes skyrocket and mortgage rates drop. This increase in prices has had another effect. The cost of renting has shot up more in Hamilton this year than anywhere else in Ontario, if we can believe the numbers coming from CMHC.
Many Torontonians are being squeezed with the high rent costs and are moving to Hamilton to purchase existing homes. This has had a dramatic effect on our vacancy rate. Hamilton’s vacancy rate dropped to 1.8% from April 2014 to April 2015.
What does this mean for Hamiltonians’?
Some won’t be able to afford a home as the city house price surges
To add additional pain, rents rose 3.5% when compared from April 2014 to April 2015
Added rent costs will make it even tougher to save for a future home
Affordable housing is now affecting our poor.
A Beasley neighbourhood resident has seen her one bedroom apartment rent go from $700 to $1,100 a month. In her words some families are choosing to eat or pay rent.
Some landlords have offered tenants cash to move or have tried to renovate around them so they can raise the rent.
Affordable housing in Hamilton has deteriorated. In Hamilton for the applicants who were on a waiting list for rent geared to income RGI housing, there were 3817 applicants in 2007 waiting for subsided housing. Now there are over 5500 waiting. This undoubtedly will have tenants moving into very scary conditions as they become desperate.
For the landlord these are perfect conditions. Their home value has gone up considerably. Their rents are also going higher. Mortgage rates are at an all time low thus their costs have come down. And another benefit has now come up. With vacancy rates so tight, landlords can be very choosy who they rent the home to. In my opinion this may be the greatest advantage of them all as it brings in secure tenants.
There is no arguing that our great city of Hamilton is just getting better all the time, but it is unfortunate that not all Hamiltonians can share in these great times. I guess it just depends what side of the fence you’re on.