Brampton ranked most-expensive city to rent in first quarter of 2023 as gap between rental, mortgage payments tightens
Published July 13, 2023 at 12:12 pm
The gap between what renters and homeowners pay every month continues to close and Brampton is one of the most expensive cities to rent in all of the Greater Toronto Area.
That’s according to a report from real estate website Zoocasa.com that looked at the difference between the average rental and mortgage payments in communities across the GTA.
The numbers show that property in Brampton had an average rental price of $3,263 per month in the first quarter of 2023, while the average mortgage payment for a $1,000,000 home was $4,626 for a difference of just $1,363.
But the average home price in Brampton is actually $1,113,948, meaning renters could be paying around $1,900 less than homeowners every month.
“While growth has slowed in the Canadian rental market in recent months, homeownership affordability has tightened in the first half of the year,” the report reads. “This is expected to take a toll on rental prices and drive them upwards again in the coming months.”
The prospect of rising rents may have prospective homebuyers questioning whether it’s more affordable to rent or buy a home and make monthly mortgage payments.
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But with the price of so-called “starter homes” now more than $530,000 in Brampton, some renters may never be able to own their own home if wages and home prices don’t start to align.
“While the numbers may suggest renting is the way to go right now, it’s not always that simple. Aside from the ability to build up equity in a home you own, it’s important to take into account that mortgage payments are being driven up because of heightened interest rates,” Zoocasa said.
While the high average rent for the first quarter of the year might leave some with sticker shock, rental prices in the city do seem to be improving month-to-month.
In June, Brampton ranked as the 9th-most expensive city in Canada in June for the second month in a row dropping from 13th place back in May according to Rentals.ca. Brampton was ranked second for cities with the fastest annual rent growth with an increase of 25.8 per cent.
On the other end of the spectrum is Orangeville, which was the most affordable city in terms of mortgage payments with a monthly mortgage payment of $3,920 for a house at an average price of $847,527.
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