Renting remains much cheaper than buying in St. Catharines: Report
Published July 26, 2023 at 12:55 pm
While monthly rental rates and mortgage payments are similar in many Canadian municipalities, a new report suggests that renters still get a bit of a break over homebuyers in St. Catharines.
According to a recent real estate website and brokerage Zoocasa report comparing rental and mortgage rates in 27 cities, the average monthly rent in the Niagara-area city is $1,853. The average monthly mortgage payment, on the other hand, sits at $2,590.
The average home price in St. Catharines was $603,900 in June.
In the report, Zoocasa points out that the rental market has been heating up due to a series of interest rate hikes that increased the cost of borrowing for prospective homeowners. While the hikes have had a cooling effect on southern Ontario’s white-hot housing market, home prices remain high, with the average price of a house in Toronto costing $1,171,300.
The average monthly rental rate in Toronto hit $2,937 in June–over $1,000 more than St. Catharines.
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Population growth is also putting pressure on the rental market.
“Record population growth is not only driving up home prices but also rental prices. The average asking rent reached a record high in June 2023, according to Rentals.ca, and the demand for affordable housing will continue to grow in conjunction with rising house prices and high-interest rates,” the report reads.
“At the same time, home price growth is starting to slow down in several large markets and could be an indication of an impending decline in home prices.”
The report says that while no market is more affordable for buyers than renters, some cities outside Ontario and British Columbia boast similar rates. Winnipeg’s average monthly rent sits at $1,475, while the average monthly mortgage payment is $1,493.
In Ontario, Kingston is the most affordable city for both renters ($1,812 a month) and buyers ($2,438).
St. Catharines is the second most affordable.
The most expensive city in Canada is Vancouver, where renters pay about $3,404 a month and buyers pay $5,159.
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