“We expect rental inflation to slow over the next few years, accompanied by rising unemployment and weaker population growth,” she predicted.
Rents have risen quickly and rental inflation is “much higher” than home price increases, it said. Rental inflation was 8.3% within the third quarter of this 12 months, “the fastest pace since the early 1980s.”
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Canada sets latest immigration goals
Last month, the federal government announced plans to chop Canada’s immigration targets by 20% as the federal government faced increasing pressure to deal with the fee and availability of housing.
Ottawa can be in search of to scale back the proportion of temporary residents, which incorporates temporary foreign employees and international students.
The Desjardins report said non-permanent residents “are more likely to rent than buy a home due to the temporary or uncertain nature of their stay in Canada.” Many everlasting residents also rent after arriving in Canada, it said.
“Reducing the number of new arrivals should halt or possibly even reverse Canada’s population growth and curb demand for rental housing,” the report said.
But while Desjardins expects rental inflation to slow, there’s uncertainty about how the federal government will implement its latest immigration policies.
“If the population declines faster than expected, demand for rental housing will weaken and price pressures will ease,” it said.
