Rental housing makes a comeback
Last year saw a surge in construction of rental units according to real estate brokerage CBRE. It reports that there were 24,000 units under construction, up 52 per cent from a year earlier. Typically Canada’s cities have new rental starts at double the five-year average and may be higher as many builders register as condos when they are actually rentals. Derek Lobo, CEO of brokerage Rock Advisers told the Globe and Mail: “Canada is at the early stages of a new apartment construction renaissance.” The market is being boosted by insurance companies and pension funds choosing the rental market as a safer place for their funds. As well as lower interest rates the resurgence in rental buildings has been driven by demand with builders finding they can often make as much from selling a rental building to an investor as they can selling condos. As a result of the changing landscape there has been an increase in the number of condo developments ending up as rental buildings.