Articles from Connect CRE

Prime Minister Paul Carney's budget proposal includes a $50 billion Local Infrastructure Fund aimed at housing, transportation, and healthcare infrastructure projects. The budget requires approval from opposition parties, as the Liberal minority government is short three votes. Key components of the budget involve investments in large-scale projects but also call for significant cuts in the public sector workforce. The approval of this budget could avoid an untimely election and facilitate major infrastructure spending across Canada.

Canadian home sales reached a four-year high in September, despite a month-over-month decline of 1.7% in MLS system sales. The decrease was mainly due to reduced activity in cities like Vancouver, Calgary, and Montreal, although Toronto and Winnipeg saw increases. The national average sale price rose slightly by 0.7% annually, while inventory levels remained tight with 4.4 months of supply. The Canadian Real Estate Association anticipates further sales growth into the final quarter of the year and into 2026.

Housing starts in Canada rose by 19% year-over-year in the country's largest markets in September, with significant contributions from Montreal and Toronto. Overall, housing starts increased to 22,375 units in urban centers with populations over 10,000. Despite these increases, there are concerns about a possible slowdown in residential construction. CMHC noted that current levels reflect past investor decisions which were made during higher investor confidence.

Fairgrounds Racket Club secured $140 million in financing, led by Back Forty, to fund the expansion of pickleball and padel courts across Canada. The expansion aims to address the growing demand for such facilities while utilizing mall spaces with large vacancies. The company plans to open seven new locations by early 2026 and an additional 30 by 2027, expecting to form Canada’s largest pickleball and padel court network by the end of 2025. This expansion also involves collaboration with developers to integrate courts into commercial properties.

QuadReal Property Group is launching a £2.5 billion real estate debt platform in the UK and Ireland, aimed at attracting Canadian institutional investors. The platform will focus on lending for sectors like multi-family, student housing, and industrial properties. The initiative marks an extension of QuadReal’s debt business success in North America and aims to enhance diversification in global markets. Expansion plans to other European countries are set for the future, with no immediate plans for further expansion in Canada or the US.

Canada's average residential rent has decreased for the 12th month consecutively, reaching $2,123 in September. The report from Rentals.ca and Urbanation indicates a 3.2% year-over-year decline in rent prices, marking a two-year low. This trend is attributed to new rental supply surpassing demand, especially in major cities like Vancouver and Toronto. All property types experienced rent reductions, with townhomes seeing the largest drop at 5.5%.

The Canadian seniors housing market is in a phase of sustained growth, with occupancy rates reaching 91.5% in Q2 2025, nearly matching pre-pandemic levels. The sector is experiencing strong demand driven by demographic changes, despite challenges like elevated construction costs, constrained lending, and labor shortages. Cushman & Wakefield anticipates continued rent growth and record dealmaking in 2025, due to limited new supply and declining vacancies. Workforce availability remains a pivotal concern as the market continues to expand.

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.