The cost of rent rose by a larger amount in Newfoundland and Labrador than any other jurisdiction in Canada last month on a year-over-year basis according to the Consumer Price Index.

Rent prices went up by 7.8 per cent in NL, 5.6 per cent in PEI, and 4.7 per cent in British Columbia – the three largest increases in the country. And an economist says the cost of shelter will worsen in this province once the next megaproject comes along.

Newfoundland and Labrador and Quebec have an agreement to expand Churchill Falls and develop Gull Island, projects which will result in significant economic activity in terms of jobs and revenue.

Future hydro development will put more pressure on the housing market

Larry Short of Short Financial, a division of iA Private Wealth, says mortgage costs have stabilized but he expects to see more pressure on the housing market once the hydro projects get going.

He says unless there is a significant infusion of supply, the cost of shelter in the province will continue to increase with the economic activity associated with hydro development. He says the impact on the province in terms of housing could be more significant than that created by the oil industry.