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Canada Succeeds At Triggering Affordable Rental Construction Surge

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Economy

https://www.bnnbloomberg.ca/developers-can-t-get-enough-of-new-canada-loans-for-rentals-1.1299751

 

First there was an uptick in permits after rent price controls were relaxed

 

But to further try to help the housing crisis and exorbant prices and surging rents, the Government has expanded low cost loans to developers as part of a $55 Billion National housing strategy with interest as low as 1.5% (free when adjusted for inflation)

 

The applications for construction permits for specifically rental housing purpose tripled in the last year alone. 10% annual increases in price of rents surely contributed to developer interest

 

12,000 units are being funded this year by the loan tho that's still a modest part of the 210,000 housing stars for the year (including non-rental units which still make up the vast majority of market, this the rental shortage)

 

The loans are for cheaper more affordable units only

Edited by Economy

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Economy
3 hours ago, Curunir said:

Is this gonna help the Toronto situation?

I hope so. Probably not right away tho cuz it will take time for supply to come online

 

Home prices are flat in Canada now and in some cities falling because of the stress test that started in 2017 but in Toronto they are rising again

 

Even Vancouver (the only city in Canada more expensive than Toronto) has prices falling

 

But in Toronto rents are still surging and homes prices have also resumed growth. It's a nightmare for young people like me :saladga:

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