Rents climbing, condition worsening for affordable housing: CMHC

In this episode, the discussion kicks off with an introduction to the episode, followed by a sponsor message from Real Approved Inc. The conversation then turns to a CMHC report detailing current housing market trends and conditions. The episode explores national rent price trends and forecasts, providing listeners with an overview of what to expect in the coming months. The role of government in housing management and maintenance is also discussed, highlighting the importance of policy in shaping the housing landscape. The episode concludes with closing remarks and a reminder from Real Approved Inc.

Episode Transcript

Steve (00:00):
Welcome to the Ontario Mortgage & Real Estate Insights Podcast, your go-to source for
the latest developments, trends, and regulatorychanges in the industry.
I'm your host, Steve Hamoen, here to provideyou with insights sourced from reputable news
outlets to help you stay informed and makewell-informed decisions.

Janine (00:22):
This podcast is brought to you by Real Approved Inc., a trusted mortgage brokerage
dedicated to helping Canadians achieve theirhomeownership dreams.
Visit realapproved.ca to learn more about howour experienced team can assist you with your
mortgage needs.
Let's dive into today's episode.

Steve (00:43):
Alright, Janine, today we're diving into some concerning news from the Canada Mortgage
and Housing Corporation, or CMHC.
They recently released data highlighting thatrents are climbing, and the condition of
affordable housing is worsening across Canada.

Janine (01:00):
That's right, Steve.
The report suggests that Canada's social andaffordable rental housing stock is aging, and
many of these units require repairs.
This is really concerning for the familiesrelying on these homes as rent prices continue
to increase.

Steve (01:18):
The CMHC's findings are based on survey responses and administrative records, offering
insight into nearly 593,000 subsidized housingunits across all provinces and territories from
2019 to 2024.
Interestingly, Toronto alone accounts fornearly 30 percent of these surveyed units.

Janine (01:39):
And the report highlights that the vacancy rate increased nationally from 1.6
percent in 2019 to 2.9 percent in 2024.
However, Manitoba saw a significant jump, withits vacancy rate rising from 1.2 percent to
13.7 percent during the same period.

Steve (01:59):
That's a massive increase for Manitoba.
The report also shows that the proportion ofunits in poor condition has increased.
Currently, just over one-third of units fallinto the fair-to-poor category, with 23 percent
deemed poor.
This is a sharp rise from 2.5 percent in 2019.

Janine (02:20):
It's alarming, Steve.
The number of structures expected to need norepairs within the next five years has also
declined from 34 percent to 23 percent.
This means more homes are likely to requirerepairs sooner rather than later.

Steve (02:37):
Another point to note is the variation in building conditions across regions.
Saskatchewan, for example, has only 15 percentof its social and affordable housing units
rated as excellent or good, compared to 60-70percent in British Columbia and Quebec.

Janine (02:55):
It's clear that newer buildings, those constructed since 2003, are more likely to be
in good or excellent condition, with 77 percentof them in that category.
But older stock, built before 2003, doesn'tfare as well, with only 38 percent rated
similarly.

Steve (03:14):
Let's talk about rent prices.
Between 2019 and 2024, national average rentsincreased by approximately 16 percent for
one-bedroom units and 22 percent fortwo-bedroom units.
For units with three or more bedrooms, rentssoared by 30 percent.

Janine (03:33):
Interestingly, average rents for bachelor units actually declined by four
percent.
But overall, the trend shows significantincreases in rent, which is concerning for
affordability.

Steve (03:46):
Management of these units is also a point of interest.
More than half are managed by various levels ofgovernment, while non-profit organizations
oversee 26 percent, and housing cooperativesmanage another seven percent.
The rest are handled by private companies orpartnerships.

Janine (04:05):
It's clear that government entities are the primary contributors to funding these
units.
This underscores the importance of publicsector involvement in maintaining and improving
our affordable housing stock.

Steve (04:18):
Thanks for tuning in to another episode of the Ontario Mortgage & Real Estate Insights
Podcast.
We hope you found today's insights valuable asyou navigate the world of mortgages and real
estate.

Janine (04:29):
Before you go, a quick reminder
smoother.
Whether you're buying your first home orrefinancing, their experienced team is ready to
guide you with personalized support every stepof the way.
Visit realapproved.ca to get started and takethe next step toward achieving your
homeownership goals.

(04:50):
Catch you next time, and stay informed with thelatest industry insights!