The Bank of Canada is expected to raise interest rates again this week as forecasters say the economy has not softened enough for the central bank to back off.
Is there any evidence that landlords are colliding on prices? That usually doesn’t happen in a market with a sufficient (non-ologopoly) number of sellers.
They don’t need to collude, if you own a mortgage on a home and you’re renting it, a rate hike has just increased your costs and so you need to increase your price.
It’s pretty well established that there’s a housing shortage.
I’m just a little confused by your “greedy landlords” descriptor. The price is dictated by the market, not any particular party. After all as you say, there’s a housing shortage, so prices are up.
The price is determined by the market but real estate in Canada is not an efficient market.
Maybe greedy is not needed, but it’s my belief that landlords do not create a significant market force for additional housing in our market, which is the argument for their existence.
The greedy landlords can just crank up the rent, which is why an average 1 bedroom in Ontario is now $2k/month.
That’s more than my mortgage payment and home insurance, and I bought during the pandemic.
Is there any evidence that landlords are colliding on prices? That usually doesn’t happen in a market with a sufficient (non-ologopoly) number of sellers.
They don’t need to collude, if you own a mortgage on a home and you’re renting it, a rate hike has just increased your costs and so you need to increase your price.
It’s pretty well established that there’s a housing shortage.
I’m just a little confused by your “greedy landlords” descriptor. The price is dictated by the market, not any particular party. After all as you say, there’s a housing shortage, so prices are up.
The price is determined by the market but real estate in Canada is not an efficient market.
Maybe greedy is not needed, but it’s my belief that landlords do not create a significant market force for additional housing in our market, which is the argument for their existence.