The Canada Mortgage and Housing Corporation (CMHC) is out with its annual report on the rental market, and while vacancy rates remain nearly unchanged, there's been a jump in the cost to rent in Windsor-Essex.
The average two bedroom apartment went for just under $1,200 a month in 2021 — that's a 5.7% increase compared to the previous year.
Tad Mangwengwende with the CMHC says it's no surprise as the price of most things were on the rise due to inflation.
He says those with lower incomes are struggling to find housing they can afford.
"When we take a deeper dive into that, we find that 60% of people can only afford 50% of available units," he says. "It means that if you are in a low income bracket, you are essentially facing an even tighter market than, perhaps, the broader numbers would suggest."
Mangwengwende says wage increases are not in line with rent increases.
"People are having to work increasing hours at the average wage in order to be able to afford, for example, a two bedroom apartment," says Mangwengwende. "That is indicative of this increase in the cost of rental units and the fact that it is rising faster than the incomes are increased."
He adds skyrocketing home prices have led to an increased demand for rentals as well.
"We also show that the increase in the price of homeownership kept some renters in the rental market," he says. "Ordinarily, some of those units would be available, but because homeownership has become so expensive, we then have even greater competition for the rental spaces that are available."
The vacancy rate for 2021 came in at 3.5% — slightly down from 3.6% in 2020.
— with files from AM800's Patty Handysides