Cost of renting in Burlington significantly lower than paying mortgage

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Published July 27, 2023 at 11:20 am

It is more than twice as expensive to buy a home than to rent in Burlington, despite the city having among the highest rents in Canada.

A study conducted by online real estate firm Zoocasa showed that higher interest rates couldn’t outpace skyrocketing rents.

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.

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.

Zoocasa analyzed data for 27 markets across Canada, including Burlington, and compared monthly rental prices and monthly mortgage payments for the average home in each in June. Additional costs for each were not considered, such as utilities or property taxes.

Rental price numbers were sourced from Rentals.ca, while the monthly mortgage payments were calculated by assuming a 20 per cent down payment and a mortgage rate of 5.04 per cent amortized over 30 years on the average-priced home.

In Burlington, the average monthly rent is $2,395 while the average mortgage payment is $4,960. The numbers are similar in Oakville and Milton as well.

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