Low availability levels in Toronto’s detached, semi-detached, and townhouse segments have contributed to a growing number of the city’s residents deciding to stay put.
According to an analysis of Census data by the Ryerson University Centre for Urban Research and Land Development, Toronto’s housing activity due to address changes has fallen noticeably by 6.3% from 2006 to 2016.
“In the last decade compared with the early 2000s we were building a lot more low-density housing, particularly single-detached housing.In 2002 we built 22,000 units and in 2016, the peak in the last 10 years, we built 11,000 units,” analysis co-author Frank Clayton told the Toronto Star.
Among Toronto’s home owners, moves fell by 7.6 % during that 10-year period.This is in comparison to the 3.9% reduction in moves among tenants.
The next largest drops in moving activity were markedly below Toronto’s levels.Calgary saw a 5.7% decline, while Vancouver had 3.8% less moves, followed by Ottawa, Montreal, and Edmonton.
Consistently elevated price levels might have contributed to the trend, as well.The latest edition of the Teranet-National Bank of Canada House Price Index showed that last month, Toronto home prices went up by 1.33% from May,
A new high-end residential development in Kelowna, BC will focus on the particular needs of active boomers choosing to downsize from traditional housing.
Earlier this week, developer Ariva Resorts announced its multi-million-dollar gated community located just five minutes away from downtown Kelowna, BC.
The 200-home development will be specifically marketed towards “zoomers,” the demographic comprised of physically active boomers.
Ariva Resorts founder Barry Johnson noted that the luxury development will answer the lifestyle needs of the zoomer cohort, which has so far remained ignored by the housing industry.
“We intend to change that thinking.This group is highly active.Health conscious and want to live life to its fullest.Kelowna is the perfect place to live with its excellent climate, wines and vineyards, outdoor activities and remains affordable,” Johnson stated.
Each of the properties will come with large outdoor decks, and offering will range from 1,250 to 1,760 sq.feet.Unit prices are expected to range from $500,000 to $1.9 million.
The development is scheduled to break ground in 2020, and construction will take an estimated four years.
Data from the Office of the Superintendent of Financial Institutions indicated that borrowing among older Canadians is not
According to a report from Central 1 Credit Union, Ontario’s housing market is forecasted to grow through 2021, and that includes the need for investor-driven condos in downtown Toronto.
“In higher urban markets, condos should remain a viable investment vehicle because there are a lot of people coming in who will need a roof over their heads,” said Central 1’s regional economist, Edgard Navarrete, the report’s author.
“Population growth is still at about trend, or even slightly above trend, over the next three years and that’s because, even though the housing market is at times relatively unaffordable in the region as a whole, the economy is still attracting a lot of people for work and to education institutions, particularly in urban centres.”
The supply of purpose-built rentals, townhomes and condo apartments has been on the rise throughout Ontario due to strong population growth.Navarrette added that Ontario’s population is forecasted to grow 1.7% this year, 1.7% next year, and 1.8% in 2021.
“With an influx of people coming in, there will be increased demand for condo apartments, townhomes and single-detached homes in secondary markets to meet that demand,” he said.
The Canada Mortgage and
The number of rental construction proposals in Vancouver’s periphery currently far exceeds that seen in the city itself, according to the Goodman Report’s 2019 Mid-Year Metro Vancouver Rental Apartment Review.
Since 2016, new proposals for rental-purpose buildings in the city have declined by 29%.Much of the new volume has manifested on the suburbs, which have enjoyed a sharp 147% increase in proposals.
“This telling difference reveals Vancouver’s failure to ramp up new supply opportunities,” the Goodman Report noted.“Also, don’t forget that four long years will go by before all these suites are available (even assuming they’re all actually built).Based on the 7,587 currently in the pipeline, that’s an average of only 1,896 suites per year.”
Significant government intervention has pulled the city’s rental transactions down by 50%, and overall value by around 27%, the study added.
Dollar volume has shrunk by as much as 62%, from $1.383 billion last year to $529 million this year.At the same time, cap rates in the City of Vancouver have gone up 50%.
“In the last two years, the City of Vancouver has gone from being the new rental supply sweetheart … to being absolutely outpaced by
By the end of this year, Regina’s aggregate home price over the whole of 2019 will decline by 4.9% annually, according to Royal LePage predictions.
In its latest House Price Survey, Royal LePage reported that the city’s aggregate housing price fell by 3.5% year-over-year during Q2 2019, reaching $321,122.
The aggregate value of two-storey homes saw the largest drop, with still a relatively minute 4.2% annual shrinkage to $388,981.
Bungalow values decreased by 3.5% to $293,631 and condos ticked up by 1% year-over-year to $227,542.
The figures dovetailed with the results of a recent survey by Australian-based financial planning website Finder.com, which found that Regina is “the least attractive” Canadian city.
The perception has only been magnified by the city’s reticence compared to its louder counterparts like Toronto, Vancouver, and Montreal.
“We’re a pretty humble community.What we do a poor job of is actually telling our stories and all the great quality of life we have here, the great entrepreneurial ecosystems we have here,” Economic Development Regina CEO John Lee told Global News.
“Studies like this remind us that we must do a much better job of telling our stories.”
Good news for borrowers—the interest rate used for mortgage qualification has fallen to 5.19%.
Previously at 5.34%, last week’s decrease marks the first decline since September 2016—the benchmark qualifying rate fell to 4.64% from 4.74%—however, it’s since been on the rise.Not only are global central banks looking to loosen lending policies, but Canada’s five-year bond yield, which impacts five-year fixed mortgages, has been falling all year.
According to RateSpy.com, the interest rate decline will allow a homebuyer making $50,000 a year to afford a home that’s $4,000 more expensive, and someone earning $100,000 a year can afford $8,300 more.
That undoubtedly bodes well for homebuyers, end users and investors alike.In tandem with the Bank of Canada’s decision to hold the interest rate two weeks ago, this marks the most auspicious period for buyers in 19 months.
“The Bank of Canada is in wait-and-see mode,” Alicia McDonald, principal economist at the Conference Board of Canada, told CREW.“We’re unlike to see the interest rate move on the variable side over the next few months.”
However, McDonald added that there’s only so much good news to go around.
“The relatively rosy picture they painted of
A Vancouver city councillor wants to lift restrictions on temporary modular housing built in single-family and duplex neighbourhoods.
OneCity councillor Christine Boyle told CBC News that the motion she plans to put before the city council would expand the land available for building critical affordable housing.
Modular housing is currently not permitted in RS and RT zoning parcels in Vancouver, with those areas reserved for single-detached houses and duplexes.According to CBC News, Boyle’s motion would ask city officials to look into allowing temporary modular housing in these zones.
Read more:Commentary:Housing affordability is in a state of extreme crisis
The motion also calls for a period of public consultation with residents before rezoning commences.However, CBC News reported that rezoning would allow the city to bypass lengthy public hearings that delay urgently needed housing.
Boyle said that she expects some pushback from residents but pointed out that many neighbourhoods initially resistant to temporary modular housing have since come around.
"Absolutely, on a site-by-site basis, there is nervousness and pushback from some neighbourhoods, and we've seen it die down each time and turn out to be okay,"
Toronto has been ranked as Canada’s most attractive city to move to, according to a survey from finance planning website Finder.com.
The survey asked 1,200 Canadian adults to rank the cities they would consider moving to.Ten percent of respondents said they’d move to Toronto in order to be able to buy a place, with Halifax being the second most popular choice (9.67%), particularly among those aged 35 to 44 (16%).Saint Catharines/Niagara came in third place (8%), followed by Ottawa (7.83%), Kelowna, London, and Kitchener (all 6.92%).Ottawa was particularly popular among young folk, with over a fifth of 18 to 24-year-olds saying they’d be willing to move there to buy.
On the opposite end of the scale, Regina is the city people are least likely to want to move to (2.67%), followed by Whistler (2.75%), Windsor (3.5%), Saskatoon (3.58%), and Oshawa (4.08%).
The survey also revealed that residents from the West Coast are more likely to move to buy a place, with well over half of Canadians from the region (59.83%) claiming they’d make the change.West Coasters are most likely to be open to moving to Kelowna (19.66%), followed by Calgary and Victoria (both 12.82%) and
How does CoStar track cities’ commercial real estate developments in real time?By using a Cessna Aircraft, of course.
Affixing a camera below the small plane, CoStar flies twice daily—each trip either lasts three hours or concludes when its 512-GB camera is full—to update analytics on how myriad commercial assets are progressing through their development stages.
Although CoStar used to deploy researchers on the ground, the process was painstakingly slow, but flying overtop a city allows it to cover vastly more ground and, on average, shoot about 120 daily stills.At the end of the day, the pictures are uploaded onto an internal server and CoStar’s researchers then fill in the blanks, ascertaining each development’s final tenancy numbers, completion dates, etc.
“We have over 200,000 assets tracked in Canada with multiple data points,” said Mark Ibbotson, CoStar’s managing director in Canada.
CoStar Group, founded in the United States over three decades ago, has grown into a multinational company with several Canadian branches, including in Toronto, Vancouver, Calgary, Edmonton, Ottawa and, soon, Montreal.As a real time analytics and forecasting firm, the company answers questions its pertinent clients may have, whether they’re brokerages, landlords, investors, even tenants and
Last year marked the first time that commercial real estate investment in North Shore, BC did not exceed $100 million on an annual basis since 2009, according to the latest research by Avison Young.
The market’s commercial volume – which includes industrial, retail, and office assets – dramatically plummeted from $258 million in 2017 to $87 million in 2018.This was despite robust development and construction activity.
Industrial assets have seen particularly strong demand, with the sector labouring under an extreme 0.5% vacancy rate as of the end of Q1 2019.Any new industrial space that does enter the market has been leased almost immediately.
“There are virtually no industrial properties suitable for owner-occupiers available for sale while there are a handful of occupied industrial properties available for sale on an investment basis,” Avison Young explained.
“While industrial lease rates have increased significantly over the past five years and averaged $16.55 psf at the end of the first quarter of 2019, rates finally appear to be levelling off.”
Similarly inflamed demand also applied enormous downward pressure upon strata office and retail space vacancies.
“Office vacancy on the North Shore, which was 10.3% at the
Montreal’s current industrial real estate availability of 3.2% is currently at less than half of what it was just two years ago, according to fresh data from commercial real estate services and investment firms CBRE.
And this is likely to be just the beginning:Near-zero industrial availability in Toronto and Vancouver will push tech, manufacturing, and online retail companies to go for other major metropolitan areas such as Montreal, CBRE Quebec managing director Avi Krispine predicted.
The direct result of this influx is accelerated growth in Montreal’s commercial rent levels and purchase values, with much of the demand coming from technology, manufacturing, transportation, and logistics firms.
“There is great momentum from the economy in Quebec.Businesses are expanding and more multinationals are coming to Montreal,” Krispine told the Montreal Gazette.
“In the next few months it will be extremely interesting to see the rates for lease and sale.How high are they going to go?”
A report by Devencore last month indicated that the robust growth of Montreal’s tech and manufacturing sectors is largely impelled by the city’s four top-rated universities and developed tech scene.
These attributes magnetize attract highly intelligent and skilled
Collingwood, Toronto’s retirement arcadia to the north, is reinventing itself as Tech Hub North.
“In Collinwood and the South Georgian Bay region, we launched the Tech Hub North campaign, and in the last six months and I’ve had meetings with folks who have done very well for themselves in Silicon Valley and Toronto and they all have places up here,” said Martin Rydlo, economic development officer for the Town of Collinwood.“So we’re going, ‘How do we become part of this and invest more into these companies setting up shop here and starting to grow?’”
The town has received a surge of young families in the last few years, many of whom work remotely, and as their numbers swell, Collingwood is reinventing itself from a tourist town into regional hub with a diverse economy.
“There’s no other place in the world that has the same collection of private ski clubs that we do,” continued Rydlo.“Those ski clubs attract people with tons and tons of money, and as they spend more time here they want to invest in the community.It’s only an hour and a half drive from Toronto.They want to invest in the community and they’re
Two-storey homes remain Vancouver’s most expensive residential asset class, with an aggregate price of over $1.5 million.
The latest edition of the Royal LePage House Price Survey reported that even with a 3.3% annual decline during the second quarter of the year, the asset class still commands a value of $1,509,711.
This far outstripped other strong performers in Vancouver.Bungalows declined by 7.6% to end up at $1,315,612.Condos dropped by 2.8% annually to reach $668,389.
The aggregate price of all residential property types was at $1,208,674 during Q2 2019.Considering these values and the fact that Vancouver is seeing elevated inventory, it is not surprising that many would-be buyers are adopting a wait-and-see strategy instead.
“A wider variety of available homes to choose from is giving home buyers extra time to plan and make decisions,” Royal LePage Sterling Realty general manager Randy Ryalls explained.
“A better understanding of the reality of the real estate market in the region is helping both home buyers and sellers to manage expectations and make better-informed transactions.”
Sustained decline is highly likely.Royal LePage predicted that by the end of this year, Greater Vancouver will experience a 5.5% annual drop
Toronto is seeing much stronger activity in its market for homes valued at $1 million and lower, especially in the condo segment, according to new data from Royal LePage.
Condo units in the GTA saw their average value increase by 7.2% annually during the second quarter of the year, ending up at $542,203.
This made the asset class the fastest appreciating housing type in the GTA – and this will likely intensify further.
“Recent economic announcements aiming to strengthen first-time home buyers’ purchase power including CMHC’s incentive, have the potential to impact the condominium market,” Royal LePage Signature Realty president Chris Slightham explained.
“Our team witnessed some buyers putting decisions on hold until the new mortgage incentives get fully established, waiting to see how they can benefit from the encouraging new measures.”
Condos markedly outstripped growth in two-storey homes (1.7% year-over-year to $970,772) and bungalows (1.6% to $809,648).
The region’s overall aggregate home price during Q2 2019 was $841,729.Royal LePage predicted this figure to remain relatively steady until year’s end, crawling up by only 1.4% annually.
On the rental side, a dearth of units driven by the intense popularity of condos
As the cost of homeownership and renting soar in Canada, co-living could soon burgeon across the country.
And a new project in Kitchener-Waterloo by Node, a global leader in the co-living space, could be a telltale sign of how quickly it catches on.
The move-in-ready units will be completely furnished with all-inclusive utilities, and interestingly, “Community Curators” will match roommates together.Because co-living is predicated on the concept of community, curators help residents connect with each other and the wider community.
Shafin Jadavji, a local partner of Node Living, noted that, in addition to a fervent social environment, “Nodies,” as they’re known, also benefit from bundled costs and, therefore, savings.
“If you’re good to live with a roommate, you cut monthly expenses into half;if you want to live alone, there are also one-bedroom units,” said Jadavji.“When you look at the cost of buying furniture, dealing with internet hook-ups, cable, utilities—all those things add up and become a significant cost.At Node Living, it comes in 25-30% lower when you factor in those other costs, so we’re making the system more efficient.”
Also paramount to co-living is separating the objective from the experience, added Jadavji.