TORONTO, Jan. 17, 2020 /CNW/ - Experts call for creative, collaborative solutions to rising rents, affordability problems and lower vacancy rates in Rentals.ca 2020 Rental Market Predictions.
Rents will continue to climb in 2020 in major metropolitan areas in Canada, but while the increases won't be as much as the last few years, finding the right rental will continue to be a challenge, according to housing experts from around the country.
Annual rental rates could increase in 2020 by 7 per cent in Toronto, 5 per cent in Montreal, 4 per cent in Ottawa and 3 per cent in Vancouver, the report says.
Rentals.ca talked to 25 housing experts including CMHC senior analysts, data analysts, economists, developers, affordable housing advocates, investors and city councillors from Toronto, Montreal, Vancouver, Ottawa, Calgary, Edmonton, Winnipeg, London, Halifax, Hamilton, Saskatoon, Regina and Victoria.
As affordability remains a major issue, developers, property managers, rental advocates and governments at all levels will need to think creatively and collaboratively to find solutions to higher rental demand and prices.
Matt Danison, CEO of Rentals.ca hopes "to see investors and developers shift from the condo frenzy to building more rentals in major metropolitan areas."
"Affordability will remain a major issue in 2020," he says "We will see more short-term rental regulations, vacancy taxes, co-living developments, smaller apartment units, telecommuting, and millennials living with their parents longer."
Also to deal with affordability, some cities will consider higher density through "unicorn" sites."
Rents and home sales will increase in secondary commuter cities like Hamilton as residents move away from the exorbitant prices of major metropolitan areas. This movement will also increase commute times.
"The mortgage stress test, expanded rent control, changing AirBnB legislation, rapid population growth, and record rental housing construction continues to disrupt the balance between supply and demand," says Ben Myers, president of Bullpen Research & Consulting.
More families are renting instead of buying, and they are choosing to live near "quality schools" rather than transit centres and other conveniences.
"We expect the rental markets to perform strongly in areas close to schools in 2020," says Vincent-Charles Hodder, CEO of Local Logic.
SOURCE Rentals.ca, Inc.
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