Cambridge ranks second in the country for biggest jump in rents

Cambridge rental prices continue to climb to record levels and as the key interest rate rises too, it's inevitable some rents will be hiked along with it in a city that's now ranked eighth in the country for most expensive rentals.

According to Rentals.ca, In the month of June the price for a one bedroom apartment in Cambridge is $1,870; that’s an increase of 22 per cent year over year. Cambridge is now ranked second for the highest increase of one bedroom units in the nation. 

Two bedroom units have actually decreased in price by 3.2 per cent with an average of $2,315. This still leaves Cambridge ranked tenth in most expensive two bedroom units. 

With the latest interest rate hike by the Bank of Canada from 1.5 to 2.5 per cent, experts believe rents are only going to continue to climb as landlords may have little choice but to pass increases to their mortgage payments onto their tenants. 

“While it is difficult to forecast during these unpredictable times, Bullpen Research and Consulting and Rentals.ca expect rents to continue to rise, especially with a resale housing market correction underway,” said Rentals.ca in a press release. 

Interest rates are not the only thing continuing to push rents into unseen territory.

Kayla Andrade is the Founder of Ontario Landlords Watch and thinks all of the associated costs of being a landlord is another factor driving up prices. 

The Cambridge resident thinks, because of the rise in utilities and non-payments of tenants, landlords are having to adjust their rents accordingly to make up for the expensive costs of operating a rental. 

“We need to shift our mindset as this being an investment opportunity for landlords to a business,” said Andrade. “Just like other businesses having to adjust costs due to inflation and other factors, it only makes sense that landlords do the same.” 

Andrade also points to what she calls a broken system of the landlord tenant board. She thinks there are tenants taking advantage of the system, leaving landlords with unpaid rents into the tens of thousands. 

“That's what's really driving our landlords to be very particular on who they're going to be renting to. They feel that if the rents are higher, then they will attract tenants who can actually afford to pay that amount,” said Andrade. 

According to Statistics Canada, the average income of a single person household is around $51,300. To live affordably, the Canada Mortgage and Housing Corporation(CMHC) recommends setting aside 30 per cent of the household’s pre-tax income for rent. 

To rent a one bedroom apartment affordably in Cambridge the average rent should be around $1,275. Instead, the average person would have to spend over 43 per cent of their income on rent, making living in Cambridge less affordable. 

While the answer to getting to lower rents is tricky, Andrade said, everyone from elected officials, tenants and landlords need to come together to start talking about the housing crisis.

“We do have to consider that if we are trying to lower the rents, we have to lower the cost to the property owners,” said Andrade. 

Although she doesn’t think rent will come back down to pre-pandemic rates, she advises all renters to be aware of their situation and brace for a long road ahead.

“I would say for the tenants that you know, get prepared, budget, you have to, or at least have to make sure that you're in a unit that is going to be on rent control. If not, it could get really bad for renters,” said Andrade.