Image of the day: scarcity drives up rents
By Leo Spalteholz
From Twitter, March 2022.
Leo observes that Montreal and Quebec appear to be outliers, with low vacancy rates but limited nominal rent increases. I’m reminded of Jeremiah Johnson’s graph: the key thing is that you don’t see cities with high vacancy rates and high rent appreciation.
Notwithstanding the second graph, a careful review is warranted of why rents don't escalate in the Quebec cities despite a low vacancy rate... It is certainly suggestive of policy and cultural factors....