In response to the ever-present problem of supply in Canada’s hottest housing markets as well as the increasingly noticeable demographic shift, a leading owner and operator of residential real estate is paving the way for an alternative solution that might help relieve some of the stress off the housing sector.
Parkbridge Lifestyle Communities Inc.—which develops residential land lease communities, recreational resorts, and marinas—owns and operates livable land along with its infrastructure and amenities, while residents own their homes.
And while land lease dwellings of ages past almost always involved trailer parks, current land lease homes are manufactured off-site and constructed on location. Aside from costing around 30 per cent less than a freehold home (meaning lower down payments, lower monthly mortgage payments, and no land transfer taxes), land lease homes have no aesthetic differences from standard houses.
“It is a business model that offers solid investment fundamentals, high-quality, attainable and well-located products and communities, which are geared toward Canada's changing demographics,” he company said.
Canada’s 2016 census results released earlier this month revealed that the number of seniors has increased by a full 20 per cent since 2011.
“These factors have major implications for the housing market, particularly as the ‘empty-nest’ population looks to downsize – but land lease communities are offering a unique solution as a high-quality, yet affordable, home ownership model,” Parkbridge explained.
“Land lease is an attainable housing alternative that allows people to own their home without having to buy the land,” Parkbridge president and CEO Andrew Blair added. “These high-quality homes offer significant savings relative to freehold homes, which help people free up their financial resources for other priorities like travel, family and leisure.”