Key Factors Contributing to Rental Growth Across Canada
Until now, analyses of Canada’s housing crisis haven’t focused sufficiently on the in-depth, local insights necessary to effectively drive policy changes addressing home affordability. In this AI-driven report, find out where and how rents are expected to increase in key regions across Canada and explore the factors driving them. These insights were made possible by a partnership between the John Molson School of Business at Concordia University and Equiton.
Included in this research:
- Analysis of market forces driving record increases in rent prices and occupancy
- AI-backed rental projections in major cities including Toronto, Vancouver, Montreal, and Calgary
- Insights for policymakers, investors, and innovators working to address Canada’s housing crisis
Author:
Dr. Erkan Yönder, Associate Professor of Real Estate and Finance, John Molson School of Business at Concordia University
Document Type:
Until now, analyses of Canada’s housing crisis haven’t focused sufficiently on the in-depth, local insights necessary to effectively drive policy changes addressing home affordability. In this AI-driven report, find out where and how rents are expected to increase in key regions across Canada and explore the factors driving them. These insights were made possible by a partnership between the John Molson School of Business at Concordia University and Equiton.
Included in this research:
- Analysis of market forces driving record increases in rent prices and occupancy
- AI-backed rental projections in major cities including Toronto, Vancouver, Montreal, and Calgary
- Insights for policymakers, investors, and innovators working to address Canada’s housing crisis
Author: Dr. Erkan Yönder, Associate Professor of Real Estate and Finance, John Molson School of Business at Concordia University
Document Type: PDF
Highlights from AI-Driven Insights into Key Factors Contributing to Rental Growth Across Canada:
Highlights from AI-Driven Insights into Key Factors Contributing to Rental Growth Across Canada:
- Rapid rental growth: Rental projections created using a neural network model indicate that rents will continue to grow rapidly. For instance, in Toronto, rents are projected to grow by 26% by 2027 and by another 37% by 2032.
- Atypical market: The traditional relationship between certain market forces has eroded due to extreme demand pressures. This report indicates a positive correlation between increases in housing supply and market rents and that rents will only start to decrease relative to an increase in supply when annual completions enter the 11% to 12% range.
- Population growth: Some relationships, like that between population growth and rent prices, remain a key part of the story. The report finds that rental supply must be increased by six to 10 times to meet demand increases resulting from elevated immigration.
- Ultra-low vacancy rate: With vacancy rates approaching 1%, there are few economically significant factors that can drive them down further.
- Policy recommendations: Regional data at the subdivision level suggest targeted, local policy changes could play an important role in effectively and efficiently addressing Canada’s housing crisis.
- Rapid rental growth: Rental projections created using a neural network model indicate that rents will continue to grow rapidly. For instance, in Toronto, rents are projected to grow by 26% by 2027 and by another 37% by 2032.
- Atypical market: The traditional relationship between certain market forces has eroded due to extreme demand pressures. This report indicates a positive correlation between increases in housing supply and market rents and that rents will only start to decrease relative to an increase in supply when annual completions enter the 11% to 12% range.
- Population growth: Some relationships, like that between population growth and rent prices, remain a key part of the story. The report finds that rental supply must be increased by six to 10 times to meet demand increases resulting from elevated immigration.
- Ultra-low vacancy rate: With vacancy rates approaching 1%, there are few economically significant factors that can drive them down further.
- Policy recommendations: Regional data at the subdivision level suggest targeted, local policy changes could play an important role in effectively and efficiently addressing Canada’s housing crisis.
Get all the information by reading the Rental Market Survey – Data Tables
Get all the information by reading the Rental Market Survey – Data Tables
This project was commissioned by the Equiton Research Fund in Real Estate at the John Molson School of Business. Equiton values and upholds the principle of academic independence in all its research partnerships.
This project was commissioned by the Equiton Research Fund in Real Estate at the John Molson School of Business. Equiton values and upholds the principle of academic independence in all its research partnerships.