Renters and Homeowners Face Narrowing Gap in Monthly Payments, Brampton Rental Prices Soar
According to a recent report by Zoocasa.com, the disparity between rental and mortgage payments in the Greater Toronto Area (GTA) continues to decrease, with Brampton emerging as one of the most expensive cities to rent in. In the first quarter of 2023, the average rental price in Brampton reached $3,263 per month, while the average mortgage payment for a $1,000,000 home stood at $4,626—a difference of just $1,363.
Interestingly, the average home price in Brampton is actually $1,113,948, implying that renters could be paying approximately $1,900 less than homeowners on a monthly basis. The report highlights that while the Canadian rental market has experienced slower growth recently, homeownership affordability has become more challenging, particularly in the first half of the year. This tightening of affordability is anticipated to impact rental prices, potentially driving them up once again in the coming months.
Given the prospect of rising rents, prospective homebuyers may be questioning whether it is more financially viable to rent or buy a home and make monthly mortgage payments. However, with starter homes now surpassing $530,000 in Brampton, some renters may find themselves unable to attain homeownership unless wages and home prices begin to align.
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