11 May Soaring Rent in Hamilton
Soaring Rent in Hamilton
Hamiltonians that still rent are fondly remembering rents of a couple years ago. The vacancy rate remains very low, hovering around the 2% mark, but renting a two bedroom will cost you over $1100 in Hamilton, a one bedroom just under one thousand.
What is driving the decrease in rental vacancy?
Is it a supply and demand question or something else?
1: The dizzying rise in real estate prices in the GTA has brought roughly 30% economic migrants, aka “out of town buyers”, some here to live and some here to invest. And renovate.
The math from the investors perspective is simple. Offer a nice, well-appointed unit and you will A) Make more money, and B) Attract a better tenant.
2: Hamilton Zoning By-laws. The requirements for the conversion of a single-family home to a multi-unit dwelling are unreasonable and impossible to satisfy.
Starting from 1.5 parking spots per unit in a society trying to bid farewell to cars, to unreasonable square footage requirements for a basement unit of approx. 595 square feet, the current zoning bylaws do nothing to help create solid, legal dwelling units in Hamilton.
Take a look at these two graphs to see the variations in rent prices in different Canadian cities: