Analysts are cautioning that the rent/own ratio—which currently puts paying a mortgage as twice as expensive as renting—can be distorted, given market parameters.
For instance, half the provinces control the market through rental control. This prevents prices from rising along with the broader real estate market. For instance, while Toronto experienced a 30% increase housing prices last year, rental rates were capped as a maximum of 2.1%.
For more on the rent/own ratio concerns, read the Michael Babad’s column in the Globe and Mail.