Image by mrscday21 from Pixabay
It’s not just Canadian home prices showing bubbly signs, but rental prices are following too. The cost of renting an apartment in the suburbs is rising much faster than in the city. Economists call this the flattening of the bid-rent curve, or rental gradient. Basically, the discount for being located further from amenities is disappearing. People are so panicked about paying more, they’re willing to pay a premium today, to avoid pain later. When prices move entirely in anticipation of future rises, you’re looking at a bubble.
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