11-29-2021, 03:20 PM
(11-28-2021, 02:36 AM)nms Wrote:(11-13-2021, 11:21 PM)jeffster Wrote: New builds most certainly will be on the higher end of rent costs. What happens though, older builds have to start discounting rents. If you are in a new rental unit, paying $1800 is OK if you're the first tenant. IF you are in an older building, with 30-70 years of tenant history, $1800 is a bit much. So new builds should reduce rental costs of old builds.
Problem is, Kitchener (the region) has a low vacancy rate. Until the city shuts down NIMBY's and let developers develop high density projects, we'll continue to have high rental costs.
What about when old buildings are bought up by developers and they are either renovated to higher rental price, or demolished and something high end put in its place? Affordable (and often better constructed) units are removed, higher ends units are built, and the affordable and usable housing stock is reduced.
That happens too. We have a small apartment up the street from my place, maybe 16 or 17 units. They basically renovicted the place and create higher end units. Mind you, this occurred just after the region stopped transit service in our area to help fund the Ion, so 3/4's of the tenants moved out - so I am not actually sure anyone was actually evicted.
But there are still a lot of older apartments out there, that simply need more competition for prices to decrease to more affordable levels, and this won't happen until we have more units come online.