Demand for rental to keep growing in the foreseeable future
Renting as the primary mode of residence among Canada’s young adults is projected to become more and more common in the coming years, with purpose-build rental stock expected to play an increasingly important role in this shift away from an ownership-centric paradigm.
In a contribution piece for HuffPost Business Canada, real estate firm RentSeeker.ca argued that the current fiscal environment is most conducive to greater investment in developments specifically designed for rental use.
“As investors and stock holders deal with a stormy economic situation, new investment streams are needed, and real estate is booming,” the commentary noted.
“[When] borrowing money is cheap, both builders and buyers of apartments and condos reap the benefits. Lowered interest rates mean less debt for builders, and low mortgage rates makes buying more affordable, especially for first-time property owners.”
“Both factors fuel the need for new developments, and the added jobs created from all these projects has certainly helped the Canadian economy that is experiencing tough times in other sectors like manufacturing and energy,” it added. “Builders are hammering out buildings in record numbers, and investors like the steady and reliable income that the purpose-built units provide.”
A major contributor to this sea change is the ever-stronger purchasing power of a generation that has a fundamentally different notion of what exactly a “home” consists of.
“The consumeristic, modern mentality of making life count and living in the moment means short-term life enjoyment (travel, fine dining) can supersede long-term financial goals,” RentSeeker.ca observed.
“Whether you attribute that to the generation of Millennials or simply acknowledge that many people now prefer to have liquid assets and enjoy themselves, Canadians are living a more nomadic lifestyle than previous generations. This includes life changes like switching careers (let alone jobs) and living in the proverbial ‘now.’”