Interest rates could deepen Canada’s rental housing crisis: Tal
The slowdown has led to about one-third of planned multi-residential developments in Toronto being delayed or cancelled.
Canada needs to increase its rental housing supply to alleviate a housing crisis that could worsen, CIBC Capital Markets managing director and deputy chief economist Benjamin Tal told a large crowd Wednesday to open the Canadian Apartment Investment Conference.
People had a sense of urgency about buying houses earlier during the pandemic, he explained during his keynote address at the Metro Toronto Convention Centre, but an increase in interest rates has slowed purchases. The Bank of Canada increased the policy interest rate 75 basis points to 3.25 per cent on Wednesday and Tal said Canadians are more sensitive to rate increases than Americans because they carry more debt.
The slowdown has led to about one-third of planned multi-residential developments in Toronto being delayed or cancelled, according to Tal. …[Read More]