Brampton to see tighter rental market in 2020
According to a report by Rental.ca, rents will continue to climb in 2020 in major metropolitan areas in Canada.
Although the increases won’t be as much as they have been in the last few years, it will still be a challenge to find the right rental, according to housing experts from around the country.
In 2020, the average rental rates will increase by 3 per cent year over year on a national basis, according to the December National Rent Report from Rentals.ca and Bullpen Research & Consulting.
Rentals.ca spoke with 16 housing professionals and experts including housing data analysts, economists, developers, affordable housing advocates, investors and city councillors and they provided their insight on the 2020 rental market in Canada.
Due to the high rental demand and the fact that affordability remains a major issue in the new decade for major metropolitan areas, property managers, developers, rental advocates and governments will need to reevalutate in order to collaboratively find solutions.
In terms of dealing with affordability, some experts are calling for cities to consider more density through “unicorn” sites.”
Other ways Canadians are rethinking housing throughout 2020 are buildings being redesigned for co-living, smaller, but more affordable apartments close to city centre and rentals offering dens as offices.
Canadians have also started turning lobbies into co-working spaces.
Because of the shifting rental market, more families continue to rent as opposed to buy and they are opting to choose 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.
Veteran housing analyst, Ben Myers said, “I wish everyone on all sides of the housing debate would do a bit more reading on solutions that have actually worked and more research on what policy changes have not worked.”
Tony Irwin, president of the Federation of Rental-housing Providers of Ontario (FRPO) agrees and wants to see disparate groups get together which include NIMBYs, tenants groups, politicians, builders and property managers, “to engage with one another and actually get something done.”
Matt Danison, CEO of Rentals.ca is also hopeful more rentals will be built to tackle the affordability issue.
“In 2020, while rents will still rise, we expect to see investors and developers shift from the condo frenzy into building more rentals,” he said.
The rental report concludes with nine issues that will continue to make headlines in 2020 such as higher prices for homes and rental spaces in secondary cities, longer commute times, record immigration for growth, more co-living developments, close tracking of experimental and innovative projects, careful vetting of rental scams and dens that will offer a creative co-working space.