Recent changes in some zoning bylaws have reportedly had a big impact
Canada’s urban markets are seeing accelerated demand for residential properties with secondary components, amid recent changes in some zoning bylaws that paved the way for greater flexibility in building secondary units appended to homes, according to market players.
The regulatory changes were especially apparent in Ontario and Alberta, which saw a surge of new secondary suites that feature their own entrances in pre-existing residences.
Aside from providing valuable rental income, secondary units can also plug some of the current deficiencies in these markets’ housing inventories, said Ken Bekendam, CEO and founder of legalsecondsuites.com.
“We’re seeing an increasing demand for (such services),” Bekendam said in an interview with Global News. “A lot of first-time home buyers are more interested in homes that already have an income-producing suite in it or that can easily be added.”
The number of newly listed properties on the market edged upwards by 1.6% last month compared with March – but supply remains at a 20-year low, according to new figures released by the Canadian Real Estate Association.https://t.co/V1rNUKMR8i#mortgagenews #housingmarket
— Canadian Mortgage Professional Magazine (@CMPmagazine) May 16, 2023
Canada Mortgage and Housing Corporation (CMHC) acknowledged the vital contribution of such units.
“They are a practical solution to addressing rental supply gaps, particularly in neighbourhoods with predominantly low-density housing,” CMHC said.
CMHC senior analyst Anthony Passarelli said that for many homeowners, “it would become more appealing to be able to have that extra income boost, to be able to qualify to purchase a home, so it may play into the decision of a buyer whether there is that income potential.”
