February 20, 2024 February 2024 Trending Topic: Rental Market Roundtable

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In this month's Trending Topic, our hosts, Suzana Goncalves and Brittany Reimer, are joined by real estate veteran Ashley Judd, as they delve into the dynamics of the rental market and uncover critical insights. The overarching theme revolves around the delicate balance of supply and demand, with vacancy rates lingering between 1-2%, primarily driven by a surge in rental rates, up 8% in 2023. 

Ashley highlights the demand side, revealing that approximately 34% of Canadian households are renting, with a growing segment due to affordability factors and the influx of over 2 million people through immigration, study permits, and work permits.

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On the supply side, a historical lack of purpose-built rental construction has intensified the challenge, prompting recent government efforts to incentivize developers. Despite rental rate increase caps, market resets upon relocation and new homes entering the market contribute to the notable 24% increase in new rental product rates. The discussion also anticipates the long-term persistence of low vacancy rates, rising rental rates, and structural challenges, while hinting at potential relief when interest rates decrease. The emergence of active amenities, and fostering community engagement, stands out as a promising trend in 2024.

CHAPTERS

  • Intro (0:00) 
  • What's going on in the rental market? (0:58) 
  • What is driving growth? (1:42) 
  • Rental Rate Increase Caps (5:00) 
  • 2024 Rental Market Outlook (6:19) 
  • Closing (9:41)

ADDITIONAL LINKS FOR THIS EPISODE:

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