4 minute read
Transactions Rental Demand in Canada
from CAM March/April 2022
by MediaEdge
RENTAL DEMAND IN CANADA
From the city to the suburbs, demand for rental is robust
Rental demand has been relatively stable and positive throughout the first few months of 2022, according to Morguard’s Director of Research, Keith Reading. Many renter families have been unable to access the ownership market, given the sky-high housing prices and limited supply. This has buoyed demand for rental accommodation and supported modest downward pressure on vacancy levels. At the same time, market rents remain at or near record-high levels in many markets thanks to the return of immigration and the easing of COVID measures. Suburban demand is also relatively robust, given increased work-from-home programs implemented by many private sector organizations.
Notable Q1-2022 Transactions
1. 2. 3. 4. 5. 6. 7. 8.
Address City # of Units Sale Price (Millions) Sale Price/ Unit Purchaser
Plaza Towers, 45 Trayborn Dr
Quebec Portfolio Richmond Hill 62 $24.0 $387,097 Q Residential
Montreal/Laval/ Cote Saint-Luc, St Hyacinthe 516 $281.0 $544,574 CAPREIT
507 Balmoral Dr Brampton 55 $21.3 $386,364 Pulis Investments
265 Hymus Blvd Montreal 135 $53.8 $398,321 Firm Capital
1570 Lawrence Ave W Toronto 87 433.8 M $387,931 Pilus Investments
3440 Saint-Elzear Blvd W (80% interest) Montreal 139 $41.6 $373,770 RioCan REIT
Investment market
Multi-suite residential rental properties remain a prime target of various investment groups. Consequently, bidding on product put up for sale has been brisk and aggressive.
“Both newer and older vintage assets have been popular with buyers, including properties with the potential for expansion,” Reading said. “Investors have been attracted by the asset class’s strong growth outlook and solid historical performance track record.”
Prime markets like Toronto and Montreal are popular, although secondary markets like Hamilton and Kitchener have witnessed increased demand. Suburban properties with typically larger units remain a favourite of investors and renters alike.
“We’re so pleased to work with Dream and TD to bring more affordable housing to Toronto,” said Romy Bowers, President and CEO of CMHC. “The introduction of MLI Select is another important tool that will help transform existing supply into sustainable and affordable housing across the country.”
“Apartment complexes like Residence at Weston require a meaningful approach to ensure they are healthy and resilient homes for generations to come,” added Michael Cooper, President and Chief Responsible Officer at Dream. “Our work serves as an example that retrofits are a critical piece of our housing stock and can preserve much-needed affordable and accessible housing while addressing climate change. The most sustainable building is one that already exists, and it’s incumbent on us all to find new ways of working with what we have and bring them up to a high level of performance.”
Dream Invests in energy upgrades at aging Weston Road apartment
On April 6th, Dream announced it had successfully secured a $153-million loan under CMHC’s new MLI Select insurance product to finance affordable units and energy retrofits at the “Residence at Weston” apartment complex in Toronto.
The new MLI Select multi-unit insurance product, released earlier this year, uses a points-based system to incentivize a borrower’s commitments to social and climate-related outcomes. Designed with support from Dream, the product will assist building owners as they set out to transform their aging buildings into resilient, affordable, and accessible homes working with their approved lenders.
According to Dream, it has already begun converting 137 units at the Residence at Weston into affordable units and retrofitting the building to achieve its decarbonization targets. Work includes implementing new boilers, mechanical and plumbing systems; enhancing balcony insulation; and, installing high-performing doors and windows.
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