Articles from Storeys

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The article discusses the Canadian housing crisis, highlighting that the challenge lies in outdated construction methods rather than just supply shortages or affordability issues.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.

Canadian housing starts experienced a modest rise in June, with a 14% year-over-year increase, though gains varied widely across regions. Toronto and Vancouver diverged, with Vancouver seeing a 74% increase in starts primarily due to multi-unit projects, whereas Toronto faced a 40% decline driven by weak condo market conditions. The overall Canadian trend saw slight progress in certain provinces, but several factors, such as high construction costs and economic uncertainty, pose challenges. The data surpassed expectations, suggesting potential short-term stability in residential investment.

The Canada Mortgage and Housing Corporation (CMHC) is drastically shifting its focus from supporting homeownership to driving rental housing development. In its 2024 report, CMHC highlights a significant increase in insurance for multi-unit buildings and a decrease for single-family homes. This pivot aligns with economic, climate, and urban policy objectives but raises concerns about potentially widening wealth gaps and impacting homeownership accessibility in Canada. As CMHC becomes a major player in rental housing, it holds significant influence over the country's housing market direction.

In Canada, rents have decreased for the ninth consecutive month, driven by low immigration and an oversupply of rental properties, particularly in major cities like Vancouver and Toronto. The secondary rental market, including condos and single-family homes, has seen larger declines compared to purpose-built rentals. Despite a slowdown in immigration impacting cities such as Vancouver, Toronto, and Halifax, vacancy rates are expected to increase further according to the Canada Mortgage and Housing Corporation. Alberta and British Columbia experienced the largest regional rent declines, while Saskatchewan saw an increase.