A what’s what of Canada’s fast-moving real estate sector from real estate expert and founder of Crescendo Equity, Mathew Moxness. For more news and insights on Canadian real estate and the factors that shape the sector, explore the Crescendo Equity blog.
In an effort to supplement Ontario’s stock of affordable housing, the Government of Canada has announced an investment of nearly $120 million to help build a 26-storey multi-residential and energy-efficient building in Brampton, Ontario. The building will provide affordable rental housing to more than 300 local families.
Buying and Selling
Canada’s luxury real estate market is on fire and sales have exceeded pre-pandemic levels. This is attributed to increased buying and selling activity as well as soaring valuations that are resulting in more properties being considered “luxury.” That said, some experts speculate that the foreign homebuyers’ tax will cool down the luxury real estate market, making it more affordable for local buyers.
Canadian real estate investor, serial entrepreneur, and author Kosi Stobbs has launched his first online course entitled Canadian Real Estate Investor Mastery. The six-week course is geared at anyone who wants to gain knowledge in expanding their real estate portfolios.
Statistics Canada has updated the consumer price index (CPI) basket weights. The update includes an increase to the Shelter component. Starting in June 2021, the Shelter component of CPI will represent 30.03 percent of the CPI basket weight. Increasing the Shelter component is expected to push inflation lower, implicating rental costs, homeownership costs, and energy costs to varying degrees.
Romy Bowers, who is the new chief executive of Canada Mortgage and Housing Corp., has identified that new construction is the solution to rising housing prices. That said, experts and previous research agree that in order to expedite new housing construction, land-use planning processes must be fixed at a bureaucratic level.
Commercial real estate company CBRE says Canada’s office sector will experience a post-pandemic economic upswing. As Canada recovers from COVID-19, industrial demand is picking back up, and as such, office vacancy increases are easing in markets throughout the country. With that said, we also know that many companies have realized that working from home can be advantageous, and as such, working from home is here to stay. So, in short, will offices fill back up? Yes, to some extent, but the office market segment will still be a tricky place to be for commercial investors.