Bank of Canada: ‘Strong Population Growth Is Supporting Inflation in Rental Prices’
Published on January 24, 2024
The Bank of Canada, in a recent analysis, focused on Canadian housing cost trends and noted that “strong population growth is supporting inflation in rental prices.” “A larger increase in newcomers than in the past is adding pressure to the structural supply constraint in housing,” states the Bank of Canada’s Jan. 24 Monetary Policy Report. “This has helped to push the overall housing vacancy rate to record lows, which has underpinned house prices and led to higher rents.” A chart included in the report shows a close correlation between yearly population growth and the inflation of rental prices, putting today’s rental price inflation at nearly 8 percent....