The average asking rent in Canada reached another record high of $2,078 in July. Rents increased 8.9% annually, the fastest pace of growth of the past three months. The 1.8% increase in average asking rents over June represented the fastest month-over-month growth of the past eight months.
There’s no real difference between variable and fixed. People who bought at the top who have huge fixed mortgages will get hit with massive payment increases at time of term renewal. That’ll be 1-4 years from now. In reality these increases will be hitting people all the time overall.
Instead we might want to look into making illegal renting out units that have higher than a certain carrying cost.
You’re right, fixed just helped avoid sudden changes in first necessitating sudden rent changes.
I do feel like rent increases need to be examined closer for these situations, it’s absurd the average one bedroom in my city costs more than my mortgage and insurance on a whole house.
