Renting or buying? Here’s the housing market outlook for Windsor-Essex

There’s some good news and bad news for people looking for a place to live in Windsor, depending on timeline and if you’re renting or buying, according to a new report from the Canada Mortgage and Housing Corporation.

The report says renting in Windsor is expected to be even more expensive and difficult over the next two years.

The report shows the city's rental vacancy rate is at a record-low 1.8 per cent and is expected to fall to one per cent in 2023. Click on the video above to see how the rental vacancy rate is preventing people from leaving the shelter system.

Rent for an average two-bedroom Windsor apartment increased to about $1,200, which is a jump of almost four per cent from 2021.

In 2024 and 2025, CMHC anticipates that the vacancy rate will increase marginally.

“This will be caused by the availability of more units due to elevated multi-residential housing completions and higher unit turnover as the resale market activity increases,” said Tad Mangwengwende CMHC senior analyst.

Meanwhile, home prices in Windsor-Essex are expected to decline in 2023, but rebound in 2024 and 2025.Housing Market Outlook summary for Windsor, according to the Canada Mortgage and Housing Corporation. (Source: CMHC)

The CMHC's Spring 2023 Housing Market Outlook reports the decrease in prices in 2023 will be the result of reduced home ownership demand due to high borrowing costs.

“Beyond 2023, housing demand will grow as borrowing costs stabilize. This will bring back pressure on house prices,” said Mangwengwende.

The average home price for Windsor-Essex is listed at $512,000 for 2023, but is expected to climb to $611,000 by 2025.