Are you looking at Kitchener rental? What have you found?

When you consider that the price of houses dropped from 2008 to 2009, have the costs of Kithener rentals dropped correspondingly?

Chances are, they have not. And this can be discouraging for those who hope to reduce their housing expenses and particularly for those who have had to sell their home at something of a discount and must now get into a rental agreement.

Of course, the question any real estate agent will ask is why rent? While Kitchener real estate prices have dropped, why have Kitchener rentals remained at the same monthly cost or, in some cases, increased? It seems bizarre (and not just from a Realtor's perspective!).

Here are some reasons that my readers give for why they want to rent, as well as my response.

After selling my home at a decent profit, I think that Kitchener rentals are the way to go until house prices drop even more.

The Kitchener real estate market is like any other. It will rise and fall, although not with the same volatility as the stock market or even the US housing market. Realistically, it is impossible to "time" the Kitchener real estate market and, in fact, we have already seen signs of a turnaround. Even though Kitchener real estate prices remain soft, we are seeing more sales which is a sign of greater demand, not greater supply. Timing the market, as it turns out, can have dire financial consequences for people who mis-time it. The best plan is to stay invested in the Kitchener real estate market, so if you are sitting on the sidelines, let me know what your dream house looks like and I can find it for you!


I don't want to be stuck in a Kitchener rental apartment, but I don't have a downpayment. And my buddies tell me that the government has tightened up what banks are allowed to do, so there's no such thing as a 100% mortgage program.

While the government has evidently made it more restrictive for Canadian banks to lend, the top five Canadian banks are only one piece of the mortgage pie. There are plenty of other options for borrowers looking to get OUT of Kitchener rentals and INTO Kitchener Real Estate. Depending on credit score, some lenders will still advance 100% of a purchase price and even the banks are able to provide "non-traditional" downpayment options such as Cash back or loans specifically for home purchase down payments. Just as there are many lenders, there are as many mortgage options, so your best bet is to call me and we can talk in greater detail about the option that will work best for you.</p><p>

I'm waiting for prices to drop before I stop renting

Contrary to what some believe, the Kitchener real estate market is nothing at all like the US housing market. In fact, the Kitchener real estate market is very different from other real estate markets in the province. There are many reasons for this (economic diversification, higher employment than the median, desirability, etc., etc.). But the bottom line is that sales in Kitchener real estate are on the rise (26% year over year). And pricing, although softer than last year, is a lagging indicator (i.e. when you buy a house, it will not close for weeks if not months from the day you buy). The indication is that pricing will start creeping up again, fairly soon. So for buyers who are sitting on the sidelines waiting for prices to drop again, they are most likely going to have to pay higher prices for the home they want.


While Kitchener rentals sure provide an options for people, they are certainly not the most economical options. Ideally, getting into a small home is a better cost-cutting alternative than getting out of the Kitchener real estate market altogether. To find out what your options are, give me a call and we can sit down and complete a full analysis on your housing needs.