Articles from Connect CRE

In August, housing starts in Canada's major markets rose 10% compared to the previous year, as reported by the CMHC. However, a monthly decline was observed with the seasonally adjusted annual rate (SAAR) of housing starts for Canada falling 16% from July 2025. The slowdown aligns with forecasts, with Vancouver and Montreal showing significant yearly gains. Despite this, rural housing starts decreased 4% year-over-year.

Investment in Canadian building construction increased by 5.6%, the strongest gain since Q3 2020, according to Turner & Townsend. This rise is driven by an 8.2% jump in residential construction due to a backlog of multi-unit projects and robust demand for rental apartments. Non-residential construction rose 2.5%, supported by progress on institutional projects such as schools and hospitals. However, this momentum may not continue due to uncertainties in trade policy.

Prime Minister Mark Carney has announced the first five projects nominated for Canada's Major Projects Office under a new infrastructure fast-tracking program. These projects include significant developments such as the LNG Canada Phase 2, Darlington New Nuclear Project, and Contrecœur Terminal Container Project, focusing on energy, clean technology, and supply chain improvements. The fast-tracking initiative aims to accelerate approvals, enhance Canada’s infrastructure, and foster partnerships with provinces and indigenous groups. Additional transformative projects like the Port of Churchill expansion and the Alto high-speed rail line are also planned for future fast-tracking efforts.

The average asking rent for residential properties in Canada decreased by 2.3% year-over-year in August, continuing an 11-month trend of falling rents. Despite this decline, rents are still 1% higher than two years ago, with notable declines in Vancouver, Toronto, and Calgary. Purpose-built rentals saw the smallest decrease at 0.4%, whereas condos and houses dropped more significantly. Alberta, followed by British Columbia and Ontario, led the yearly declines among provinces.

Prime Minister Mark Carney has introduced a comprehensive $5-billion Strategic Response Fund to support Canadian businesses and workers impacted by U.S. tariffs and global trade disturbances. The package includes a reskilling program for 50,000 workers, a Buy Canadian Policy, and financial relief measures for various sectors such as the auto and agriculture industries. Additionally, the creation of a Major Projects Office in Calgary aims to expedite nation-building projects. These measures aim to bolster Canada's economic resilience and support domestic industries.

Highside Companies, a part of Westmount Park Investments, secured a US$500-million investment-grade financing package from Apollo to expand its Everhome Suites hotel platform with Choice Hotels International. Based in Denver, Highside is a vertically integrated real estate developer, involved in sectors such as multi-family, self-storage, and light industrial, and has over US$1 billion in projects. The deal is considered one of the largest financings in the extended-stay sector, with Highside aiming to expand through acquisitions, joint ventures, and partnerships. Westmount Park has a long history in real estate investment with significant operations in Canada and the U.S.

CGC Inc. has completed its acquisition of Imperial Building Products, a Canadian manufacturer specializing in steel framing and drywall solutions. This acquisition includes IBP's five-plant network across multiple Canadian provinces, aimed at enhancing CGC's offerings for both residential and commercial construction. Sid Tetz will manage IBP as general manager and vice-president, and IBP will remain a distinct unit under CGC. The acquisition aims to boost CGC's growth in the Canadian market and support national housing and infrastructure goals.

Housing starts in Canada increased by 4% year-over-year in July, with a notable contribution from multi-unit projects in the Prairie Provinces and Quebec. Montreal experienced a significant surge of 212% in housing starts, while Toronto saw a 69% decline. Other cities like Vancouver, Edmonton, and Halifax also recorded increases, contributing to the overall growth in the residential sector. These trends reflect the impact of past investment and market conditions on current construction activities.

Morgan Properties has agreed to acquire Dream Residential Real Estate Investment Trust in an all-cash transaction valued at approximately US$354 million. The deal includes a 60% premium to Dream Residential's closing unit price before the announcement of a strategic review. The acquisition is expected to close in late 2025, pending approvals. The transaction also involves a termination of existing agreements with Dream Unlimited Corp. and Pauls Corp. with a separation payment of US$7 million.

The Canada Mortgage and Housing Corporation (CMHC) is advocating for increased private-sector investment in the rental housing market to address Canada's housing shortage. The federal agency argues that private investment is crucial for boosting long-term supply, as high homeownership costs have made renting the primary option for many. Although there are concerns about private involvement leading to higher rents, CMHC suggests focusing on tenant protections to address these issues. The need for substantial and consistent supply is emphasized to stabilize rental prices and improve affordability.

GFL Environmental has announced a $4.25 billion recapitalization of its construction subsidiary, Green Infrastructure Partners (GIP), with Energy Capital Partners. GIP will receive $775 million in gross proceeds, with $200 million going to GFL; the rest will support GIP's growth. GFL will retain a 30.1% ownership in GIP, allowing it to participate in future value creation. This move comes as a strategic decision to manage investor concerns over GFL's debt-driven growth.

The Canadian government is providing $1.2 billion to aid softwood lumber producers facing increased U.S. tariffs. The package includes $700 million in loan guarantees and $500 million for product development and market diversification. An emphasis is placed on using Canadian lumber in national building initiatives and promoting Canada in global markets. The initiative aims to reinforce the commercial real estate and lumber industries by supporting worker retraining and Indigenous business development.