A Glimpse into the Future: Housing supply & Rental data

A Glimpse into the Future: Housing supply & Rental data

The most recent Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL) report reveals that, by 2030, Canada will require a staggering 3.5 million additional homes to restore housing affordability to levels reminiscent of 2004 Simultaneously, while Canada grapples with addressing its housing supply gap, the nation also confronts soaring rental costs. A report from Rentals.ca highlighted that the country's average asking rent touched an all-time high of $2,117 in August.

Various demographic and economic fluctuations will inevitably impact these projections and we’ll see variations across provinces. Ontario and British Columbia are adjusting their forecasts due to these shifts and Quebec's situation is notably distinct, with an anticipated expanded housing supply gap of 860,000 units.

The reasons for this are rooted in population trends and recent migration patterns. Unlike some other provinces that may experience a dip, Quebec is on track for an uptick in household formations by the turn of the next decade, pointing towards a marked rise in housing demand.

Though cities like Toronto and Vancouver captured headlines with their escalating rents, the uptrends in mid-sized markets, especially those proximate to Quebec, warrant attention. Locations such as Richmond, Oakville, and Brampton have observed significant year-over-year rent increases.

Between May and August, asking rents in Canada increased by an average of $103 per month. This paints a vivid picture of the challenges Canadian renters face, with Quebec no exception. This uptick in rent is attributed to Canada’s massive population growth and the declining affordability of homeownership. For commercial real estate investors, these rental trends highlight potential regions of interest, especially in provinces anticipating higher demand in the coming years.

So, what implications does this hold for Quebec's real estate sector?

Intensified Housing Demand: The anticipated increase in household formations in Quebec, coupled with the broader national housing supply challenge, accentuates the province's pivotal role in Canada's real estate trajectory. This trend provides food for thought for investors formulating their long-term strategies.?

Rental Prospects: With the consistent climb in national rental prices and the evident spikes in neighboring mid-sized markets, Quebec presents itself as a potentially high-yield market for rental investments. For those looking to diversify their portfolios, this is a great avenue for investment capital compared to other markets such as Toronto and Vancouver.

Innovative Solutions: Challenges, while present, can be overcome with the right strategies. Being entrenched in the real estate realm for decades, we advocate for adaptability and innovation. Harnessing new construction methodologies, exploring varied financing options, and capitalizing on data analytics can usher in intelligent and sustainable investment avenues.

As Canada maneuvers through its housing and rental predicaments, Quebec emerges as a beacon of potential and growth. For those in the commercial real estate arena, the key lies in staying proactive, informed, and adaptable.

At Votre Equipe Immobilier, we pride ourselves on guiding our clients through these changing times with expertise and foresight. Contact us to redefine the future of real estate.