SVN Rock Advisors CEO Derek Lobo is expecting there to be a resurgence of lower-income rental-type properties in Ontario and Quebec.
Years ago “The industry collapsed because of rent controls and, now that it’s experiencing reinvigoration, it’s the bigger players with deeper pockets that are coming to the market,” said Lobo. He goes on to say that 18,000 of the 25,000 apartment buildings in Ontario have fewer than 50 units.
He also says that there are 250 apartment buildings being built across the province with 750 more planned, but he also says that there is more opportunity in this market. He also says that most Canadian cities also have room for apartments without concerns for overbuilding. He also suggests that since there are so many office spaces that might not be filling back up after the pandemic there’s an opportunity to convert those units into apartments.
He finally caps off by saying that since the market is so hot it’s almost not worth building single-family dwellings since it’s so easy to fill up multi-unit buildings right now, according to Renx.ca.