COVID Update: Hamilton continues to face difficulties due to the pandemic but the opening of the province has been helpful to get many hard hit industries back up and running. However, many businesses that suffered the worst and were not able to weather the storm will not be opening up again and many residents still rely on government assistance. It may be some time before we see a significant improvement and the effects on the economy gradually subside. The City of Hamilton continues to do what it can to support residents and businesses as well as provide guidance to rental property owners and managers. Recently, the City of Hamilton’s Medical Officer of Health released a Letter of Instruction mandating COVID-19 measures in high-rise apartments and condominiums that are twelve storeys or higher. It includes requirements that certain cleanliness measures be followed to prevent the spread of the virus and mandates that a safety plan be in place. The requirements encompass everything from cleaning requirements, availability of sanitation stations to HVAC system requirements. The City and HDAA have also been partnering together to provide educational webinars to our members in regards to COVID-19 best practices, information and where to access resources. After over a year of being in a pandemic and dealing with the virus, property managers have a good idea of what needs to be done to help stop the spread and as long as we continue to do what we can hopefully the virus will eventually become a distant memory. Real Estate Market: The real estate market in Hamilton continues to remain strong with prices continuing to increase. Inventory remains substantially low with demand continuing to remain strong which is carrying the increasing prices. These increases are still expected to last for the foreseeable future and have caused affordability issues forcing many individuals, particularly firsttime home buyers, out of the area and into areas that are more affordable for them. The general need for more living space and more outdoor space continues but with a need for proximity to
transit as many expect to be commuting to work as the pandemic subsides. We expect that there will be some effects on the market once immigration is opened again, as well as some effects from inventory being placed on the market from those homeowners who were wary of selling during the worst of the pandemic. We doubt that enough additional inventory will come onto the market to meet the current demand; and certainly, there will not be enough to meet additional demand from elevated immigration. This issue is not one to be over anytime soon, as housing inventory is at the lowest point it has been in decades, and as long as the pandemic continues many will be hesitant to make a move or downsize and put their homes on the market. Rising Rental Amounts: Hamilton was said to be one of a dozen or so Canadian cities to see an increase in rental prices in 2020 and this remains the case in 2021. Hamilton was declared the third least affordable housing market in North America when comparing income to housing prices, which creates many challenges for those looking for affordable units. The same issues with inventory versus demand are at play here as well. The availability of rental units in general, and in particular affordable units, in the City of Hamilton has not been able to keep up with demand for some time, and this has been exacerbated by the pandemic and the migration of people out of Toronto to seemingly more affordable areas. The lack of planning, proper policies, encouragement of development and overall poor foresight of future issues has created an environment where supply cannot meet demand. This problem has become a much larger issue due to the pandemic. The rise in home prices has also made selling appealing to many landlords who want to take advantage of the prices and who may no longer see a benefit to being a landlord with ever increasing legislation that is skewed against them. The biggest issue with this is that some of these rental properties are being converted back to single family homes which is furthering the lack of supply. Many
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