Articles from Storeys

The federal government has launched Build Canada Homes (BCH), aimed at increasing affordable housing supply across Canada, promising up to 45,000 factory-built homes. However, BCH's efforts might fall short of the long-term need of 4.8 million new homes by 2035. The initiative focuses on non-market housing and partnerships, but lacks details for middle-class affordability and urban land access. Proposed policy changes include incentives for densification and Canadian-made materials, extending tax rebates, and allowing modular construction self-certification to facilitate housing development.

The article examines the rising youth unemployment rate in Canada and its potential impact on the housing market. Despite the overall resilience of Canada's labor market, young Canadians are facing structural joblessness that may hinder their ability to achieve financial milestones like home ownership. This situation poses a threat to the sustainability of the housing market and broader social mobility. Experts suggest this youth unemployment issue is not just a temporary fluctuation but a deeper, enduring problem.

In August, Canada's housing starts fell by 16% from the previous month, indicating a slowdown in construction activity, according to the Canada Mortgage and Housing Corporation (CMHC). Despite rises in some regions, overall trends show a decrease, particularly in key markets like Toronto and Vancouver. Factors contributing to this slowdown include rising construction costs and decreased builder confidence, notably in Ontario and British Columbia. Regions like Montreal and Calgary are seeing growth or are expected to experience high activity in 2025.

The article discusses the upcoming interest rate announcement from the Bank of Canada, considering the current economic conditions such as job losses and high unemployment rate. Economists from major banks like TD, RBC, CIBC, BMO, and Scotiabank weigh in on the likelihood of a rate cut, with many expecting a 25 basis points reduction. Economic data and Consumer Price Index readings will play a crucial role in the decision. Forecasts vary, but there is consensus on the possibility of further cuts this year due to economic uncertainties.

The article discusses the growing popularity of real estate podcasts in Canada, which have become a key medium for Canadians seeking explanations on housing market trends and issues. Platforms such as 'The Missing Middle' and 'The Canadian Real Estate Investor' offer insights from industry experts, providing listeners with updates on housing policies, market trends, and investment tips. By leveraging the conversational nature of podcasts, hosts are able to engage audiences and present complex data in an approachable way, facilitating honest discussions about the Canadian housing market.

In August, national average rents in Canada marked their eleventh consecutive month of decline on a year-over-year basis, according to Rentals.ca and Urbanation. Despite a 2.3% decrease from last year, rents are still higher compared to two years prior. The largest rent drops occurred in Vancouver, Toronto, and Calgary due to increased apartment supply. Lower immigration and interest rates, paired with increased supply in major cities, are expected to help continue this trend, potentially improving affordability for renters.

The article discusses the growing interest in senior housing investment in Canada, driven by increasing demand as the population ages and a current supply-demand imbalance. Post-pandemic, occupancy rates in senior homes have rebounded, and operating costs have decreased. The anticipated 'silver tsunami' has led experts to term the period as a 'golden era' for senior housing investments, despite challenges such as high construction costs. Potential investors see opportunities as the existing senior housing infrastructure ages and requires redevelopment.

Dream Residential REIT announced that it has agreed to be acquired by Morgan Properties, a company based in Philadelphia, for approximately $354 million USD in an all-cash transaction. This acquisition marks the end of Dream Residential's strategic review that began earlier this year. The transaction is contingent on certain approvals and is expected to close in late 2025. Dream Residential's portfolio consists of multi-family properties across the U.S., and Morgan Properties plans to enhance these assets.

Canadian housing starts reached their highest level since 2022, driven by rental market demands and supported by population growth and government funding. The July data showed a 4% rise from the previous month, with significant increases in multi-unit starts in Quebec and the Prairie Provinces. However, economists warn that economic uncertainties and declining rents might slow down future housing proposals. Regionally, Montreal and Alberta showed strong growth, while Toronto faced challenges due to high development costs.

The Government of Canada has initiated public engagement for Build Canada Homes (BCH), a new federal housing entity aimed at scaling up affordable housing. The entity will work with various partners to build homes using advanced materials and methods to improve productivity while reducing costs and environmental impacts. BCH's operations will focus on financing and development, offering low-interest loans, flexible terms, and partnerships to expedite construction. Feedback is being sought until August 29 to refine the entity's objectives and strategies.

The article discusses the Canadian housing crisis, highlighting that the challenge lies in outdated construction methods rather than just supply shortages or affordability issues. It identifies slow municipal permitting processes and an aging workforce as key barriers to building homes at the needed scale and speed. Technological advances like modular construction could alleviate these problems, but regulatory hurdles and traditional practices limit their implementation. The article emphasizes the need for coordination and policy changes to optimize housing production.

Canada’s housing market remains in a state of uncertainty despite reports of improved affordability. Key factors such as house prices, interest rates, and household incomes are not aligned, restraining the market from progressing. High homeownership costs in cities like Vancouver and Toronto highlight the disparity between earnings and housing expenses. Unless there is a significant adjustment in these factors, particularly in house prices, the market will continue to remain out of reach for many buyers.