Exiting the rental market difficult in St. John's

By WM

Entering the rental market in St. John's, Nfld. is getting easier, but getting out of it may be more difficult than ever before, reports CBC News.

The construction of new apartments means that there are more vacancies for renters. However, they may find themselves stuck there, as rising house prices make it harder than ever to purchase a home.

This is a common struggle that many people in Newfoundland and other higher-priced markets across the country face, says Canadian Mortgage and Housing Corporation senior analyst Chris Janes.

"That move we refer to from rental to home ownership, which typically and historically has been an easy transition in this market, is certainly harder than it's ever been," Janes said in an interview.

As rental vacancies increase, home prices have not shown any signs of decreasing. In 2013, the average rent for a two-bedroom home surged more than 5 per cent, and there appears to be no end in sight for the increases.

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