Canada Mortgage and Housing Corporation has released its annual forecast and the news isn’t good for Hamilton. House prices are expected to keep rising rapidly in 2022 and a bit more slowly in the following two years. Rising interest rates will make it harder to borrow, and more expensive, as mortgage rate increases are expected to outpace income increases. Most new construction is now multiple-unit buildings, from townhouses (at right) to apartments, with about five times more units in multi-unit buildings than single detached homes. That’s good for urban density but tends to push up the price of singles.
For the third of Hamilton households that rent—typically those with moderate or lower incomes—the news is also bad. Demand for rental units is expected to stay high, not least because those priced out of home ownership will continue to rent. Vacancy rates will decline, putting upward pressure on rents.