The private and public rental housing make up the Canadian rental market. It covers a diverse variety of real estate, from apartments in high-rise buildings to small homes. Several factors have contributed to the expansion of the Canadian rental industry in recent years.
Over the past decade, 20% more people rent their homes due to rising housing costs, more young people entering the workforce, and changing lifestyle preferences.
In Canada, rental demand has increased due to immigration. Most people currently rent rather than purchase homes owing to reasons, some of which are accessibility, cost, and the flexibility it offers.
Before migrating, most people would preferably secure their home before arrival, of which Rentola offers extensive house listings to simplify the housing adventure in Canada. User-friendly interface makes it easy for newcomers to navigate the Canadian rental market, ensuring they find a suitable place to live without unnecessary stress.
Additionally, Rentola’s notification system allows users to stay updated on available properties that match their criteria, ensuring that they don’t miss out on the perfect rental opportunity. That way, renters can make the most preferred choice from the many options. Onward, this article will explore the size and scope of the Canadian rental market and the trends driving this growth.
Canadian Market Size
Canada has 1.6 million rented households which makes the rental sector noteworthy. This number represents 26% of Canadian households, making it a key housing market segment. In big cities where home buying is too expensive, many people now rent their homes. Even in smaller cities and rural locations, where affordable housing is scarce, rental housing is in high demand. The presence of urban dwellers and a moderate degree of revenue fluctuation are the two key elements that benefit this sector.
The Canadian rental industry has grown for many reasons in recent years. As the population is aging, more people rent than buy homes. Renting is also becoming more popular due to the high cost of home ownership. Many newcomers to Canada rent first before buying a home due to the immigration rush. With the rising trends, renters can even take virtual reality tours before choosing and signing the papers. Lastly, there is a growing movement among people to rent as a lifestyle choice because they choose the flexibility and freedom that renting affords them rather than the restrictions that come with homeownership.
Trends Shaping the Canadian Rental Market
Several trends are currently shaping the Canadian rental market. The following paragraphs provide an overview of these trends:
Demand for purpose-built rental units
There is a growing demand for purpose-built rental units, professionally managed apartments created expressly for the rental market, as opposed to being converted from condos or other housing types. These apartments are in high demand because they offer advantages over converted condos or other housing types. In cities with few affordable housing options, rental units are being built particularly for that purpose. Renters benefit from on-site amenities, skilled management, and regular rental rates. These flats are also larger and more spacious than converted apartments, making them suitable for families.
The Rise of Co-living
The growth of co-living spaces is another trend influencing Canada’s rental market. In co-living, tenants have separate rooms or flats but share the living area and facilities. This method is popular among students and young professionals looking for cheaper urban living. Kitchens, lounges, and gyms are common in co-living environments. They offer easy access to public transit and other services due to their central location.
Rising Demand for Amenities
Today’s renters seek more than a roof; they want a homey atmosphere. Consequently, landlords and developers in Canada’s real estate market equip their homes with amenities like fitness centers, swimming pools, and more. Concierge services, which help with grocery shopping and dry cleaning, are something that some properties are even beginning to offer. In addition, a growing number of rental homes now provide options favorable to tenants’ dogs, making these properties more appealing to tenants who have pets.
The rental market is being affected by the sharing economy. The term refers to using various forms of technology to connect individuals with resources they are willing to offer to others who need those resources.
This has greatly affected the rental industry, especially in tourist destinations with significant short-term rental demand. Specifically, this has affected rental property supply in Canada. The sharing economy is also changing the traditional landlord industry because private individuals rent out their properties short term.
The Canadian rental market is growing rapidly due to demographic, economic, and regulatory factors, and this expansion is likely to continue. This expansion has many beneficial and negative effects for landlords and tenants.
Tenants might expect rent increases owing to increased competition for rental housing. The expanding rental sector offers landlords and property management organizations new investment opportunities but also new regulatory challenges.
The impact of the growing rental market on housing availability and affordability must be monitored in Canada to provide more affordable housing opportunities.