- What Nearly half of all apartment starts across Canada were purpose-built rentals
- Why Demographic changes and falling homeownership affordability
- What next Edmonton is outpacing the other five primary metropolitan areas in rental construction
Purpose-built rentals represented 47% of all apartment starts nationally in the first half of the year, the highest share ever achieved, Canada Mortgage and Housing Corp. said in its fall housing-supply report.
According to the agency, the trend aligns with demographic changes and declining homeownership affordability. Rental construction represented 92% of all apartment starts in Edmonton in the period, the highest of the six primary census metropolitan areas and down slightly from 97% last year.
Montréal was next at 85%, up from 67%, followed by Vancouver (42%, up from 36%) and Calgary (50%, down from 67%). Toronto lagged behind at 21%, down from 30%.
Edmonton also had the highest rate of rental construction, adjusted for population. “In Edmonton, rental supply is catching up with demand as developers respond to rapid rent increases driven by favourable economic and demographic conditions,” CMHC said.
Montréal also saw a healthy year-over-year jump in starts on a population basis, with Calgary’s share ticking up slightly.
On the other hand, rental construction dropped in Toronto, Ottawa and Vancouver. In Toronto, purpose-built rentals are competing with condominiums being listed for rent due to the soft resale market.
“In recent months, industry sources have reported a decline in asking rents for condominium units, with newly built purpose-built apartments tending to be priced similarly,” CMHC said. “Slower rent growth could make more purpose-built developments financially unfeasible.”
