Another gift from lax lending and a decade of low rates: an oversupply of rentals in many cities. See, Purpose-built residential rentals picking up steam in Canada: “As pension funds and other big investors seek new, reliable income streams, purpose-build rental is at levels not seen in two decades.” And no, this is not just in Alberta.
In Waterloo, Ontario there are 32,000 student housing units, with a further 7,000 planned and just 31,000 students looking for off-campus housing. (Hat tip: Ben Rabidoux). Bad for owners, but lower rents for tenants, and likely to last for some time.
Joyce Klaver, who works for property management firm Waterloo Off-Campus Housing, says she’s seen the same effects from the sudden “glut” of student housing.
“It’s gone from mom-and-pop organizations to the conglomerates,” she said.
With more buildings going up and more landlords getting into the game, Klaver expects landlords to not only ask for less money, but start offering eight-month lease terms in a bid to ensure their properties are rented.” Here is a direct video link.
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