Rental prices in Canada have been driven by more than just population growth. A new Bank of Canada (BoC) research paper breaks down the factors that can explain the recent surge in 1 bedroom rents from 2020 to 2026. They found that financing costs made a big contribution to higher rents, especially when rates began rising. However, the researcher still couldn’t determine what drove the initial surge at the start of 2020, before the drivers we all accept as the reason, began to appear.
Canadian Rents Surged 20%, But the BoC Can’t Explain How It Started
