More rental housing development needed despite recent rise: RBC economist
Rental housing construction in Canada has picked up significantly and is expected to keep growing this year, according to a new RBC report. However, the report says more supply is needed to fill the backlog of demand.
Rental housing construction in Canada has picked up significantly and is expected to keep growing this year, according to a new RBC report.
However, the report says more supply is needed to fill the backlog of demand.
RBC economist Rachel Battaglia said rental housing starts reached their highest levels in decades in 2022 and 2023, with more than 80,000 new units started each year.
That number is set to rise even more this year thanks to surging demand, as well as new policy measures helping tip the scale for developers despite their challenges with inflation and labour, Battaglia wrote in a report published Wednesday.
Rapid population growth thanks to immigration and interprovincial migration are pushing demand higher, she said in an interview.
“We’re also seeing a shift to rental housing in general in Canada. It’s been happening since 2011, with more baby boomers entering the rental market and cost pressures keeping home ownership out of reach for a growing number of Canadians,” said Battaglia. …[Continue Reading]