Foreign nationals represented only a tiny share of the purpose-built rental market, however
Fully 90 per cent of Canada’s purpose-built rental apartments are owned by individual investors or private corporations, according to a new report by the Canada Mortgage and Housing Corporation (CMHC).
The Housing Market Insight report titled “Rental Ownership Structure in Canada” focused on the ownership structure of the purpose-built rental market, as well as the extent of foreign presence in that segment.
“Purpose-built rental buildings are an important part of the rental supply in Canada, especially in urban centres where they house slightly more than half of households who rent,” CMHC senior economist Gustavo Durango said.
“While individual investors and private corporations own the bulk of these buildings, it's interesting to note that these groups are not evenly represented across major markets.”
“Units owned by individual investors tend to have lower rents than units owned by other ownership types, but the difference is smallest in the most expensive markets,” the report explained.
Foreigners represented a miniscule share of the purpose-built rental apartment market, the report added. “Nationally, it stands at 2.4 per cent.”
The seeming lack of foreign interest in the segment mirrored the situation of the Montreal and Calgary housing markets. So far, initial interest in these two markets—as expressed in pre-purchase queries and online searches—has not seemed to translate into actual transaction volume.
The implementation of foreign home buyers’ taxes in Vancouver and Toronto has fostered much speculation and commentary of Montreal and Calgary being the next big housing investment destinations.
Real estate developer Brad Lamb stated that he encountered difficulty in stimulating Chinese interest in Edmonton and Calgary (the latter of which is currently labouring under an overabundance of unsold condos) through posting listings of developments in these cities.
“They’ll have their kick at Montreal and maybe Calgary, but they’ll never be as big as Vancouver or Toronto,” Lamb explained, as quoted by The Globe and Mail. “I gotta tell you, it’s been a gigantic waste of time.”
The Housing Market Insight report titled “Rental Ownership Structure in Canada” focused on the ownership structure of the purpose-built rental market, as well as the extent of foreign presence in that segment.
“Purpose-built rental buildings are an important part of the rental supply in Canada, especially in urban centres where they house slightly more than half of households who rent,” CMHC senior economist Gustavo Durango said.
“While individual investors and private corporations own the bulk of these buildings, it's interesting to note that these groups are not evenly represented across major markets.”
“Units owned by individual investors tend to have lower rents than units owned by other ownership types, but the difference is smallest in the most expensive markets,” the report explained.
Foreigners represented a miniscule share of the purpose-built rental apartment market, the report added. “Nationally, it stands at 2.4 per cent.”
The seeming lack of foreign interest in the segment mirrored the situation of the Montreal and Calgary housing markets. So far, initial interest in these two markets—as expressed in pre-purchase queries and online searches—has not seemed to translate into actual transaction volume.
The implementation of foreign home buyers’ taxes in Vancouver and Toronto has fostered much speculation and commentary of Montreal and Calgary being the next big housing investment destinations.
Real estate developer Brad Lamb stated that he encountered difficulty in stimulating Chinese interest in Edmonton and Calgary (the latter of which is currently labouring under an overabundance of unsold condos) through posting listings of developments in these cities.
“They’ll have their kick at Montreal and maybe Calgary, but they’ll never be as big as Vancouver or Toronto,” Lamb explained, as quoted by The Globe and Mail. “I gotta tell you, it’s been a gigantic waste of time.”
