Quote:
Originally Posted by Slava
Yeah and to add to this, rents lag because tenants sign say a one year lease. I think shelter makes up about 7% of CPI (can’t be bothered to look this up right now!), so it would appear elevated despite a decline.
And of course, a rate increase takes time to work through the system, which was part of the reason they tried to “front-load” the hikes this past summer. I think we see another CPI reading this week though, so that could give a little more information to consider. The jobs report (and particularly the wage segment) indicates that they’d continue to hike rates though.
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Rents only make up 7% of the overall CPI
https://www150.statcan.gc.ca/n1/pub/...017001-eng.htm
Any declines in rent over time are likely offset by mortgage interest cost increases which is 3.5%