Spring 2023 – PBRs
March 21st, 2023

Spring 2023 – PBRs

The Role of Purpose-Builts in Addressing Housing Deficits

Canada’s rental housing market is under unprecedented pressure, with significant implications for both renters and policymakers. According to RBC, the rent for a two-bedroom purpose-built unit in Toronto surged by 6.5% last year, showcasing the rapid escalation in housing costs. This surge is coupled with a concerning decline in vacancy rates, which plummeted to a 22-year low of 1.9%, indicating a severe shortage of available rental units. In response to the tightening pressure in the rental housing market, Canada saw a 2.4% increase in rental housing stock last year. However, the question remains: is this increase sufficient to address the growing demand?

Projections paint a worrisome picture, suggesting that the current rate of increase in rental housing stock may not be enough to bridge the gap. By 2026, the rental housing gap could exceed 120,000 units, driven by a combination of factors such as declining homeownership rates, increasing immigration, and overall population growth. This shortfall underscores the urgent need for proactive measures to bolster the rental housing sector.

Governments and developers are key players in addressing gaps in the rental housing market. Financial risks often deter developers from building purpose-built rentals, but as has proven historically successful, introducing government initiatives and incentives could push developers in this direction. By collaborating and focusing on constructing purpose-built rentals in high-demand areas, there is potential to create a more balanced and sustainable housing landscape in Canada.


Applying to all projects listed on this website: Exclusive Listing Brokerage Cornerstone Marketing Realty Inc., Brokerage. Brokers Protected. Specifications subject to change without notice. All offers, discounts, claims, and mortgage rates apply only to qualified purchasers. Prices and specifications subject to change without notice. E & O.E.