Yardi’s report reveals key insights from its 2023/2024 snapshot report.
The Buildings Show: Panel on navigating renovations and N13 challenges
Vanessa Topple leads a panel of experts discussing Ontario’s multifamily apartment buildings.
The numbers don’t add up in the multifamily housing market Financial and bureaucratic challenges, declining condo sales, and other factors are impacting future development.
Normally, I write a personal or amusing anecdote in this space before discussing the content in the magazine. However, this month’s issue of RHB Magazine covers a serious topic, so I want to focus on that.
This issue’s feature discusses the topic of human traf fcking. It’s happening around the world, across Canada, throughout your province, and in your city. As rental property owners and managers, you must be aware that human traf fcking is also happening to your tenants in your building. Women, boys and girls, international students, immigrants, and the disadvantaged are being victimized right now. You have a duty to protect your tenants, to report anything suspicious to the authorities, to educate your staff and tenants on protecting themselves and others, and to be part of the solution to ending human traf fcking. There are many resources available to help victims, but being informed and vigilant is key to stopping it from happening.
The second article describes the current state of the multifamily housing industry. In a nutshell, multifamily housing starts are down, condo sales are tanking, labour and construction costs continue to increase, and two of Canada’s largest cities have lost their appeal to buyers and renters. Falling interest rates might help to get more projects going again, but all levels of government need to get involved in building more housing. The third article provides a summary of a session at this year’s The Buildings Show, called “Revitalize and Relocate: Navigating Renovations and N13 Challenges,” which is moderated by RHB’s own Vanessa Topple. Don't forget to read CFAA’s newsletter, National Outlook , as well as the Regional Association Voice. FRPO discusses Ontario's Economic Outlook and provides an update on Let's Build Ontario. Yardi Canada wraps up this issue with insights from the 2023/2024 Canadian Multi-Residential Marketing & Leasing Snapshot Report.
We enjoy hearing from our readers, and we want to support twoway communication. If you have any comments or questions, send them to david@rentalhousingbusiness.ca. I look forward to your emails.
Publisher
Marc Côté
marc@rentalhousingbusiness.ca
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Nishant Rai nishant@rentalhousingbusiness.ca
Editorial
David Gargaro
david@rentalhousingbusiness.ca
Creative Director / Designer
Scott Clark
Sales Executive
Justin Kreslin
justin@rentalhousingbusiness.ca
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Rental property owners and managers have a duty to report the signs of human traffcking and keep their tenants safe.
The numbers don’t add up in the multifamily housing market
Financial and bureaucratic challenges, declining condo sales, and other factors are impacting future development.
The Buildings Show: Panel on navigating renovations and N13 challenges
Vanessa Topple leads a panel of experts discussing Ontario’s multifamily apartment buildings.
RAV features the latest industry news from four member associations.
Shaping the next era of Canadian rentals Yardi’s report reveals key insights from its 2023/2024 snapshot report.
This issue of National Outlook provides details on two major announcements from the federal government: the reduction in immigration targets and the Bank of Canada’s recent cut in interest rates. It also provides an update on several government-funded housing initiatives, and a recap of our latest webinar with Benjamin Tal.
On October 24, 2024, Marc Miller, Minister of Immigration, Refugees and Citizenship, announced the 2025-2027 Immigration Levels Plan, which will pause population growth for the next few years by reducing immigration levels. This is a signifcant departure from the previous Immigration Levels Plan. Permanent resident admissions will be reduced by 105,000 in 2025 compared to previous projections, with further reductions forecasted for 2026 and 2027. The Immigration Levels Plan will help to maintain GDP growth, lower the unemployment rate, and shift the focus of immigration to key sectors to address specifc labour shortages.
The updated Immigration Levels Plan will also impact the multi-family housing industry. It is expected to reduce the housing supply gap, improve housing affordability through decreased demand, and pause population growth, which should ease some of the pressures on the housing market. See pages 35 & 37 to read more about the plan.
On October 23, the Bank of Canada decreased the overnight rate to 3.75% - a reduction of 50 basis points. This is the fourth consecutive cut, and another rate announcement is due on December 11 of this year. Lower borrowing costs should help to spur new purchases, re fnancing or development of multi-family residential properties, and enable building owners to re fnance existing mortgages at lower rates. It could also spur developers to move forward with delayed projects, as lower
interest rates may make projects more viable.
National Outlook also provides a recap of the October 22 webinar with Benjamin Tal, who provided an economic outlook for Canada. He discussed infation, shelter costs, interest rates, Canada’s change in immigration strategy, and other key topics. See pages 40-41 for details.
If you are not already a member of CFAA, please consider joining CFAA as a Direct Rental Housing Provider Member or a Suppliers Council Member. Visit www.cfaa-fcapi.org or email admin@cfaafcapi.org today.
Tony Irwin President and CEO, FRPO, and Interim President, CFAA
35. How does the 2025-2027 Immigration Levels Plan differ from the plan that was announced last year? What measures has Minister Miller implemented to slow down population growth?
37. What were the results of the most recent provincial elections? How has the political landscape changed across Canada?
38. What does Benjamin Tal, Deputy Economist at CIBC World Markets, expect for the coming year with respect to the economy? How do his projections affect the rental housing industry?
To subscribe to CFAA’s e-Newsletter, please send your email address to communication@cfaa-fcapi.org.
The Canadian Federation of Apartment Associations represents the owners and managers of close to 1.5 million residential rental suites in Canada, through 13 apartment associations and direct landlord memberships across Canada.
CFAA is the sole national organization representing the interests of Canada’s $950 billion rental housing industry.
For more information about CFAA itself, see www.cfaa-fcapi.org or telephone 613-235-0101.
CFAA Member Associations
Corporation des Propriétaires Immobiliers du Québec (CORPIQ) www.corpiq.com P: 514-748-1921
Eastern Ontario Landlord Organization (EOLO) www.eolo.ca P: 613-235-9792
Federation of Rental-housing Providers of Ontario (FRPO) www.frpo.org P: 416-385-1100, 1-877-688-1960
Greater Toronto Apartment Association (GTAA) www.gtaaonline.com P: 416-385-3435
Hamilton & District Apartment Association (HDAA) www.hamiltonapartmentassociation.ca P: 905-632-4435
Investment Property Owners Association of Nova Scotia (IPOANS) www.ipoans.ns.ca P: 902-425-3572
LandlordBC www.landlordbc.ca P: 1-604-733-9440
Vancouver Offce P: 604-733-9440
Victoria Offce P: 250-382-6324
London Property Management Association (LPMA) www.lpma.ca P: 519-672-6999
New Brunswick Apartment Owners Association (NBAOA) www.nbaoa.ca jbrealsetate@nb.aibn.com
Manufactured Home Park Owners Alliance of British Columbia (MHPOA) www.mhpo.com P: 1-877-222-4560
Professional Property Managers’ Association (of Manitoba) (PPMA) www.ppmamanitoba.com P: 204-957-1224
Saskatchewan Landlord Association Inc. (SKLA) www.skla.ca P: 306-653-7149
Waterloo Regional Apartment Management Association (WRAMA) www.wrama.com P: 519-748-0703
Top primary rental markets in Canada by number of suites:
1 Montreal - 632,708
2 Toronto - 325,494
3 Vancouver - 121,692
4 Quebec City - 106,735
5 Edmonton - 81,705
6 Ottawa - 72,591
By David Gargaro
According to Uniform Crime Reporting (UCR) survey data, there have been almost 4,000 police-reported incidents of human traf fcking from 2012 to 2022 across Canada. That might not sound like a lot, compared to other types of crime. However, this is only police-reported data. Most of these crimes are not reported. United Nations research found only 0.4 per cent of worldwide human traf fcking victims are ever identifed.
Human traf fcking is happening in your building. Some of your tenants—women, boys and girls, students, immigrants—are being victimized right now. You have a legal and moral duty to keep your tenants safe. Watch for signs of human traf fcking and contact the authorities if you see anything suspicious or someone is in danger. Be part of the solution to end human traf fcking and encourage other members of the rental housing industry to do the same.
Jasminder Sekhon
Human trafficking involves recruiting, transporting or holding victims to force them into providing manual labour or sexual services. Traffickers can pressure victims to make them do something they don’t want to do. This can include physical force or threats of violence, as well as threats of deportation, emotional abuse, manipulation, and abuse of trust or power. Traffickers often isolate victims from family and friends, and put them in unsafe living and working conditions.
Human trafficking often goes unnoticed. Many victims are too afraid or not willing to fight back. This makes it difficult for authorities to catch or prosecute the traffickers.
Human trafficking can cause serious and permanent physical and psychological harm (and death). Victims may experience:
• Physical, sexual, emotional, financial, and psychological abuse, trauma, and injury
• Poor living and working conditions
• Sexually transmitted infections and unwanted pregnancies
• Drug addiction and related health issues
Labour trafficking
Labour trafficking involves recruiting, moving or holding victims to force them into doing any kind of work.
New immigrants looking for work in Canada and migrant workers are often at the highest risk of being a target, especially if there is a language barrier.
It also affects those working in remote areas, or people who don’t know their legal rights. Labour trafficking affects many industries (e.g., foodservice, manufacturing, construction, agriculture, hospitality). It also occurs in private homes, where individuals are forced to work as housekeepers or childcare providers.
Sex trafficking
Sex trafficking involves recruiting, moving or holding victims for sexual exploitation purposes. Victims can be physically forced or threatened into providing sexual services.
“Human traffickers will develop deep and close bonds with their victims very quickly, usually through gifts and dramatic displays of attention and love, known as love-bombing,” said Jasminder Sekhon, Director of Community
Engagement, EDI and Policy, Victim Services Toronto. “The perpetrators will identify victims based on specific qualities they may have, like lack of resources and support systems, lack of knowledge about sexual and intimate relationships, people who are disabled, based on age or in any other type of vulnerable situation.”
Anyone can become a victim of sex trafficking. Young women and girls make up the majority of victims. Indigenous people are also at high risk. Vulnerable people (e.g., those who have lost or left their families, survivors of abuse, disadvantaged individuals) are often targeted. Traffickers impose control through threats, violence, isolation, blackmail, drugs, and confinement. Sex trafficking victims live and work in terrible conditions, suffering physical, sexual, financial, and psychological abuse.
From 2012 to 2022, there were almost 4,000 police-reported incidents of human trafficking in Canada. This accounts for only 0.02 per cent of all police-reported crimes. However, police-reported incidents of human trafficking increased by over 500 per cent over this time (see Figure 1).
Figure 1: Police-reported incidents of human trafficking, by statute, Canada, 2012 – 2022
Source: Statistics Canada, Canadian Centre for Justice and Community Safety Statistics, Uniform Crime Reporting Survey.
According to Statistics Canada, in 2022:
• 56% of human trafficking incidents were not solved or cleared by police
• 48% of police-reported human trafficking incidents were reported in Toronto, Ottawa, Montreal, Halifax, and Hamilton
23% of all incidents happened in Toronto, followed by 9% in Ottawa
Thunder Bay, ON (5.9 incidents / 100,000 people) and Halifax, NS (5.0 incidents / 100,000 people) had the highest average annual rate of incidents
• 56% of incidents were related to the sex trade
• 94% of victims were female
69% were women and girls under 25
24% were aged 17 and younger
• 91% were trafficked by someone they knew
• 34% were trafficked by an intimate partner
Multi-unit residential properties can be high risk environments for human trafficking due to:
• Limited oversight by owners of property
• Limited staff and security on site
• Access to vulnerable people, low-income families, immigrants, and those with fewer resources
• Economic pressures (e.g., higher cost of living)
• Low proximity to resources (e.g., community centres, food banks, churches, cultural centres)
Call your local police service if you or someone you know is being trafficked, or you suspect someone is being trafficked.
Kids Help Phone
Website: kidshelphone.ca
Telephone: 1-800-668-6868
Text: 686868
Kids Help Phone is Canada’s only 24/7 e-mental health service, offering free, multilingual, and confidential support to help all young people. Young people can access a trained volunteer crisis responder to talk about anything and find the support they need.
Website: www.canadianhumantraffickinghotline. ca/get-help/
Telephone: 1-833-900-1010
Email: hotline@ccteht.ca
Call the hotline if you are a victim of human trafficking or think someone else may be. Hotline response advocates are available 24/7/365 and support is available in over 200 languages. The hotline can connect callers to local service providers and/or emergency services in communities across Canada.
Alberta: 1-800-222-8477
Saskatchewan: 1-866-528-7109
Manitoba: 1-800-435-7170
Ontario: 1-833-999-9211
Quebec: 514-393-1133
New Brunswick: 1-800-222-8477
Nova Scotia: 902-449-2425
PEI: 1-866-528-7109
NWT & Yukon: 1-800-661-0408 ext 3002
Loblaws has partnered with Victim Services Toronto and other women’s crisis centres to support the “Ask for Angela” campaign. If you are in danger, walk into a local Loblaws, Real Canadian Superstore, Shoppers Drug Mart, No Frills or ValuMart, and ask a staff member for “Angela”. They will bring you to a safe environment within the store to assess your needs and connect you with the proper support services.
Website: www.illuminateht.com
Telephone: 604-347-9500 / Toll-free: 1-855-332-4283
Email: connect@illuminateht.com
The Salvation Army Illuminate, based in BC, helps survivors of trafficking across Canada to access help, support, relocation, treatment, leadership, and employment training.
Joy Smith Foundation
Website: www.joysmithfoundation.com
Telephone: 204-691-2455
Email: help@joysmithfoundation.com
The Joy Smith Foundation provides prevention, intervention, and education programs to help fight and end human trafficking.
Victim Services of Toronto
Website: www.victimservicestoronto.com
Telephone: 416-808-7066
Victim Services Toronto (VST) provides shortterm crisis response, intervention, and prevention services that are responsive to the needs of individuals, families, and communities in the immediate aftermath of crime and sudden tragedy (typically within 72 hours). They have programs to assist victims of human trafficking, and offer presentations to organizations on human trafficking awareness, prevention, and intervention. VST also provides education and training for staff, parents, caregivers, and youth.
There are two main funding options for survivors of human trafficking in Ontario seeking transitional or long-term housing:
• Rent geared-to-income (RGI) housing
• Canada-Ontario Housing Benefit (COHB)
There is also funding assistance for community organizations that support trafficking survivors. In 2017, the Ontario and federal governments announced an investment of $7 million into transitional housing, creating safe places where survivors can stay while they access support and rent assistance. This funding was made available to select pre-approved organizations through the joint federal-provincial Investment in Affordable Housing (IAH) agreement and Ontario’s AntiHuman Trafficking Community Supports Fund.
Be aware of these warning signs of human trafficking within your building:
• Unusual occupancy patterns, such as too many people living in a unit or high numbers of visitors at odd times
• Very few personal belongings within the unit, indicating it is not being treated as a home
• School-aged children not attending school during regular hours
• Significant age differences between the people in the unit
• Changes made to the unit (e.g., interior locks on doors or windows) that suggest someone is being confined
• Someone other than tenant making rent payments in cash or with prepaid credit cards
A tenant may be a victim of human trafficking if they display these behaviours:
• Cannot explain circumstances (e.g., where they are, where they came from, recent or past events, why they are there)
• Cannot provide or find documents (e.g., passport, identification), or lack personal belongings
• No cash or cellphone (or have too much cash or several cellphones)
• Unaware of surroundings even when they have lived there for some time
• Tattooing, jewellery or branding indicating ownership
• From a foreign country and cannot speak English or French
• Cannot speak on their own behalf
• Speaking in a rehearsed way
• Fear of angering companion or boss, or fear of authority
• Isolated from friends or family, or cannot contact them
• Show bruises, signs of abuse, malnutrition, untreated medical issues or addiction
• Anxious, submissive, withdrawn or cannot maintain eye contact
• Frequently moved or accompanied by their trafficker
As rental property owners and managers, you have specific legal obligations to your tenants. For example, the rental unit must meet minimum legal standards for health, safety, housing, and maintenance. You must also adhere to municipal property standards, zoning bylaws, fire safety regulations, local building codes, and other regulations governing the provision of rental housing.
You have a role to play in fighting human trafficking within your buildings. You are obligated to report suspected cases of human trafficking in your rental properties. Some municipalities have imposed a legal duty upon short-term rental owners to report any suspicious activity that may indicate human trafficking. This extends to all types of rental properties.
“According to section 125 of the Child, Youth and Family Services Act, all people in Ontario have a duty to report,” said Sekhon. “Property managers or landlords have the responsibility to report to the correct authorities when child trafficking, abuse, neglect or endangerment is occurring for anyone under the age of 16 years old.”
However, this duty to report may create legal challenges. Wrongly accusing someone of being a trafficker may lead to legal consequences. It can also be stressful to get involved in a criminal investigation. That said, you are protected under Canadian law if you report suspicious behaviour in good faith. Be vigilant of the warning signs of human trafficking and report any concerns to the authorities. This ensures you satisfy your legal and ethical obligations, and helps in fighting human trafficking.
You can save someone’s life by reporting a suspected incident of human trafficking.
Do not confront the victim or trafficker directly. You could put yourself, the victim, and others in danger. If there is an immediate risk, call 911 and report the situation right away. If there is no immediate risk of danger, but you see signs of human trafficking, record the following details and submit the information to the authorities:
• A summary of the situation
• Date, time, and location of the event
• Photos/video or description of people involved (e.g., height, weight, age, hair colour, clothing)
• Any spoken names or nicknames
• Description and license plates of vehicles
You can implement strategies to help create a less hospitable environment for human trafficking. These measures should be part of a comprehensive approach to help address the issue, including staff training, community engagement, and working with law enforcement. Being vigilant and staying up to date on what is happening in the community will help to prevent human trafficking in your buildings.
Most rental property owners and managers have effective tenant screening processes. This is truly the first line of defence in preventing human
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trafficking. Tenant screening involves conducting thorough background checks of potential tenants, including checking for criminal records and verifying rental history. This will help to identify prospective tenants with a history of engaging in suspicious activities or connections with criminal elements.
Tenant screening should include verification of identities. This involves thorough examination and vetting of government identification, and matching documentation to information provided on rental applications. Rental housing staff should have experience with identifying fake or inconsistent documentation, or work with a third party that provides this service.
Conduct regular inspections of units as part of building maintenance. This also helps with detecting and preventing human trafficking. Follow proper procedures, such as providing sufficient notice prior to inspections and respecting tenant privacy. This enables you to identify signs of overcrowding, evidence of unauthorized occupants, or unit modifications that would indicate trafficking activities.
“Staff and owners who do regular property inspections and carry out property repairs in a timely manner are able to foster a good relationship with their tenants, as well as monitor their property to ensure safe living conditions for all tenants,” said Sekhon.
Recordkeeping is essential for good property management and to provide authorities with evidence of human trafficking. Keep detailed records of unit inspections, including notes of unusual observations or events. Records should include all tenant interactions, maintenance requests, and complaints or comments from other tenants. These records provide proof of patterns of behaviour, which will help with uncovering suspicious situations.
Every rental property should have some security measures in place to protect tenants and your property. They will also help to prevent human trafficking activities from taking place in your building. Install and monitor security cameras in common areas and building entrances to record evidence of suspicious activities. Ensure security practices are in line with local privacy laws and regulations.
Where possible, control access to your buildings using key fob systems, secure entry procedures or other approved methods. This will help prevent non-residents from entering the building and will enable you to monitor who enters and exits the property. Controlling access also makes it more difficult for traffickers and victims to enter or leave
their units without being noticed. Install good lighting in all exterior areas.
A well-educated staff is effective in preventing human trafficking, as well as helping to get victims out of trouble. Provide employees with education and training on the basics of human trafficking and how it happens. Staff should be able to recognize common signs of trafficking, including unusual tenant behaviours, suspicious activities or arrangements, and signs of distress. Make sure staff feel comfortable enough to report their observations or suspicions of trafficking activity.
Training programs should incorporate proper response strategies when an employee suspects or identifies human trafficking. These include following proper reporting and documentation procedures, knowing how to stay safe and keep potential victims safe, and having access to contact information for the authorities. Include practice exercises or video portrayals to help staff know what to do in a real-world situation.
Keep tenants informed of what is happening in the building, as well as safety measures. Provide resources on human trafficking through welcome packages, building newsletters and websites, information sessions, and webinars. Tenants should understand the signs of human trafficking, learn how to protect themselves and others, and be able to safely and anonymously report suspicious behaviours.
Connected tenants make for a positive building community, as well as one that is protected from trafficking. Ensure tenants know who to contact within the building to report safety issues. Provide a method of anonymous reporting to protect tenants’ privacy. Host building events to create a stronger sense of community, raise awareness of trafficking, and strengthen tenants’ sense of responsibility for their neighbours.
“Staff and owners should foster an environment where everyone respects one another and looks out for each other,” said Sekhon. “Work with tenants to find resources when they are open about needing support.”
Human trafficking is happening right now in rental properties across Canada. You have a duty to protect your tenants from becoming victims and saving them. Recognize the signs of human trafficking and report suspicious activities to the authorities. Educate your tenants, train your staff, and create a safe and secure environment. The fight to end human trafficking begins with you.
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By David Gargaro
Canada’s multifamily property developments are in jeopardy. There are significant financial and bureaucratic challenges to building purpose-built rental properties. And the condo market is on life support. Newly built and existing condos aren’t selling and there’s no incentive to put shovels in the ground to build new condo developments.
There’s still an affordable housing shortage. And if it doesn’t make financial sense to build new multifamily residential buildings, the housing shortage will get worse.
Look at the Greater Toronto Area, which has had one of the hottest housing markets since the beginning of this millennium. Those days are gone, at least for now. According to research, there are 22 per cent fewer cranes in the GTA this year compared to last. Purpose-built rental apartment starts are down 30 per cent compared to 2023, and declining.
“FRPO continues to advocate for policies that support purpose-built rental construction including fast tracking infill developments, approving greater density along transit routes, and incentives like providing relief from development charges and property tax
abatements, which would stimulate many purpose-built rental projects that aren’t currently economically viable,” said Tony Irwin, President and CEO, FRPO.
The short-term future doesn’t look great for the multifamily residential industry.
Residential building permits fell by 5.2 per cent ($387.2 million) in August, mostly driven by multiunit properties. Ontario and BC led the way in this area. Across Canada, there were 18,500 new multifamily dwellings and 4,700 new singlefamily dwellings in August, which is a 4.1 per cent decrease in total permit-approved units.
“The recent cuts in interest rates are a strengthening factor for a rise in the number of purpose-built rental starts, but softer conditions on the revenue side in recent months in some markets will introduce new cautions to the market,” said Peter Norman, Vice President and Chief Economist, Economic Consulting, Altus Group. “The federal government’s recent announcement to reduce the net international migration at zero growth will have more impact on rental demand than ownership.”
The City of Toronto recently proposed a plan to create 20,000 new rental homes. This includes 16,000 purpose-built and 4,000 affordable units, with the City committing to build 7,000 rental homes using its own resources. The City hopes to incentivize development through development charge deferrals, property tax reductions, and financial support for affordable units. Projects must include 20 per cent affordable units and start construction by 2026 to qualify. However, the City’s plan currently relies on getting funding from the federal and provincial governments, and lacks concrete details and an effective strategy on moving forward on addressing the housing crisis. The plan also does not help privately led development projects (including more than 20,000 purpose-built rental units and 11,500 condos) to move forward.
Every statistic involving condominium sales tells a story about the terrible state of this market. Condo sales are 81 per cent below the 10-year average. The Greater Toronto Hamilton Area (GTHA) new condominium market is down 66 per cent yearover-year in the second quarter of 2024, and falling 70 per cent below the 20-year average. Second quarter sales represented the lowest second quarter result of the past 20 years, excluding the initial months of COVID-19 in 2020. New condo sales in the first half of 2024 declined 57 per cent from a year ago and 72 per cent below the 10year average. It was the slowest first half for new condo sales since 1997.
“We expect fewer apartment starts overall next year, but that decline is generally being driven by the condo market more than the purpose-built rental market,” said Norman.
Only 17 per cent of presale condos launched in Q2-2024 were sold, which has not been seen in over 25 years. This is also less than one third of the decade average of 56 per cent. As a result of the drop in sales during the second quarter, total unsold inventory rose to over 25,000 units, which is approximately 10,000 units higher (over 60 per cent) than the 10-year and 20-year averages. When compared against sales over the past 12 months, unsold inventory equalled 34 months of supply, which is three times higher than the balanced figure. This year, months of supply almost doubled. Most unsold inventory was in pre-construction projects.
One reason behind the decline is the rise in development charges (DCs). Home prices are four to five times higher than they were 20 years ago, and the price of land is 10 to 11 times higher as well over this same time. Development charges are also 30 per cent higher. In fact, government charges account for about 31 per cent of the cost of a new home. Municipal DCs have risen to the point of being a significant obstacle to construction development. Consider the GTA, where DCs for single-detached homes have increased by 993 per cent from 2010 to 2024 ($12,910 to $141,139). And in the past year, DCs have increased by 42 per cent. Compare this to Calgary, where DCs for comparable homes are only $22,000.
Development charges have risen across Ontario. In 2023, Vaughan raised DCs by 17.5 per cent, Mississauga increased DCs by 22 per cent, and Ottawa raised them by 11 per cent. In 2015, total DCs collected across Ontario municipalities equalled $2.1 billion. As of 2022, that number has more than doubled to $4.3 billion.
“Municipalities are currently not adhering to longestablished best practices for establishing and negotiating community amenity contributions and developmental cost charges,” said David Hutniak, CEO, LandlordBC. “Recent increases have been excessive. This inconsistency is disrupting the delivery of housing and unfairly increasing costs for new homeowners and renters. A bolder measure would be to freeze all municipal fees and charges and impose a moratorium on new fees effective January 1, 2025.”
According to Statistics Canada’s quarterly Building Construction Price Index, the cost of building residential and non-residential buildings increased in the second quarter of 2024. Year over year, construction costs for residential buildings in 11 census metropolitan areas (CMAs) rose 4.2 per cent in the second quarter. Calgary led the way with a 7.3 per cent year-over-year increase in residential building construction costs. Compared to the first quarter of 2024, residential building construction costs increased 0.8 per cent.
“The biggest challenges we face are delays in permit approvals and rising construction costs,” said Corey Pacht, Partner and Executive Vice President, Operations, Fitzrovia. “These factors put pressure on our ability to scale and deliver new homes quickly. Although interest rates have dropped recently, they’re still high compared to a few years ago, and construction costs have gone up significantly. The recent cuts are a positive step, but we don’t expect a major rebound in multifamily housing starts without bold government policies that incentivize building more rentals.”
Skilled labour shortages, higher labour rates, building code updates, and other factors affected the construction sector in the second quarter. Labour shortages have also extended project timelines, which has led to higher construction and borrowing costs. All residential building construction divisions (except concrete) increased costs in the second quarter, with masonry and utilities up by more than 2 per cent.
“Reorient priorities within immigration and nonpermanent residents toward construction trades and labour, and ensure CMHC programs MLI Select and RCFI continue to be adequately funded and responsive to demand from developers applying to these programs,” said Irwin.
Toronto and Vancouver have weakened
Both Toronto and Vancouver have traditionally been among the most desirable cities to live in Canada, with very strong real estate markets and prices. This is no longer the case.
The sales to new listing ratio (SNLR) is a good indicator of whether a city is a good buyers’ market or a good sellers’ market. A ratio between 40 and 60 per cent is considered “balanced.” A city with an SNLR above 60 per cent is considered a sellers’ market, while an SNLR below 40 per cent is considered a buyers’ market. The national SNLR fell to 44.5 per cent in September, which makes Canada close to a buyers' market.
Toronto and Vancouver have the weakest demand for real estate in Canada. The GTA had an SNLR of 27.6 per cent in September, which was the lowest in Canada. Vancouver was second worst with an SNLR of 30.3 per cent. They have declined by 1 point and 4.7 points, respectively, from last year.
Housing starts in both cities are in decline. In Toronto, year-to-date housing starts are down 20 per cent from 2023, while Vancouver’s housing starts are down 19 per cent from 2023. However, both cities had record-high housing starts in 2023. Compare these figures to Montreal, which is up 15 per cent compared to last year, which had a historically low year in 2023.
“Municipalities have been hesitant to assess their actual housing needs,” said Hutniak. “We must understand these needs and set realistic targets to address the acute housing shortage. Even if population growth slowed tomorrow, CMHC estimates that BC is short approximately 570,000 homes by 2030. In an average year, we build about 23,000 homes in Metro Vancouver. Clearly, we need to start setting and meeting more ambitious objectives.”
Even with those poor ratios, housing prices have not truly declined in either city. Neither city has seen real declines in housing prices since 2022. Homeowners don’t want to sell, as they seem to be waiting for demand to go back up. While a mandated return to office would increase the number of people looking for homes closer to the city, this has yet to happen in significant numbers.
Canada’s multifamily housing industry is facing a critical downturn, characterized by a large decline in housing starts and condo sales, particularly in major markets. Rising development charges and construction costs have made the situation more financially challenging to invest in new developments. Even with lower interest rates and the cap on immigration, the affordable housing shortage will continue to get worse. Government intervention will be needed to incentivize construction and lighten the financial burdens on developers.
“Lower rates alone won’t solve the housing crisis,” said Pacht. “We need innovative approaches to how we build and fund rental housing. Measures like tax abatements, reduced development charges, and government-backed funding for sustainable building methods are essential for increasing supply. Without these, the current decline in housing starts will only worsen, and the industry won’t be able to meet the growing demand.”
By David Gargaro
The Buildings Show brings together more than 18,000 Canadian construction industry professionals to network with their peers, peruse new products and services, learn best practices from industry experts, and more. The event, which takes place on December 3 to 5, 2024 at the Metro Toronto Convention Centre, provides attendees with opportunities to attend informative panel sessions, expert-led seminars, and thought-provoking roundtables.
This year’s program includes a session called “Revitalize and Relocate: Navigating Renovations and N13 Challenges.” It is geared to property managers, owners, and others involved in the multifamily housing industry who want to ensure they remain informed and compliant with changing municipal bylaws. The speakers will explore the key challenges and essential regulations involved in managing multifamily apartment buildings in Ontario.
Vanessa Topple, Producer and Lead Anchor at BoldTV, RHBTV, and CREBTV, will moderate the panel discussion on dealing with N13 challenges and renovations in the multifamily housing industry. She has more than 15 years of experience in the commercial and residential real estate industry and has established herself as a knowledgeable and trusted professional.
“Knowledge is power,” said Vanessa. “The landscape of the industry is ever evolving. With new municipal bylaws being considered or implemented by some cities, it can be hard to stay up to date. I am looking forward to help bring a sense of clarity to the industry.”
This session will cover N13 requirements and renovation costs in multifamily housing. Topics will include:
• N13 requirements: Understand the documentation and approvals required by Ontario for multifamily dwellings. The panel will discuss when an N13 is truly necessary and the implications of non-compliance.
• Municipal bylaws: Understand the local regulations that impact renovation projects. The panel will discuss how to effectively navigate these bylaws to ensure smooth project execution.
• Cost of renovations and repairs: Gain insights into budgeting for renovations and repairs in
multifamily buildings. The panel will break down typical costs and strategies for costeffective improvements.
“Owners and property managers alike will benefit from this session,” said Vanessa. “For landlords in Ontario, it’s essential to have a deep understanding of the N13 form, including the obligations it entails and the rights it provides to tenants, to navigate these complex situations both legally and ethically."
Kristin A. Ley is a Partner and Practice Group Leader of the Multi-Residential Housing and Commercial Litigation teams at Cohen Highley LLP in London. She works for housing providers,
property managers, and landlords with respect to lease issues, regulatory compliance, and risk management. Kristin regularly appears before boards and tribunals, including the Human Rights Tribunal and the Landlord and Tenant Board (LTB), and represents clients before all levels of Ontario courts.
Justin Taylor is COO of Signet Group. He has more than 25 years of senior management experience in construction, project management, and property management, and has held senior positions in the U.S., UK, and Canada. Justin is Chair of the Greater Toronto Apartment Association, which supports strong tenant and landlord relations.
Harry Fine, currently retired from active practice, sat as a full-time member of the Ontario Rental Housing Tribunal for five years before opening
his paralegal practice. He has decades of experience representing landlords at the LTB. He is also a former director of the Paralegal Society of Ontario and Ontario Paralegal Association, and a former board member of the Landlord’s SelfHelp Centre. Harry trains groups and organizations on safe operation under the RTA.
“We are privileged to have some of the top legal experts on this panel who have worked with owners, tenants, and the LTB to get the most accurate and up to date information on this topic,” said Vanessa. “For any owner or property manager who wants to stay ahead of the game, this is the session to be at!”
Where can I see the session?
This free session takes place on December 5 at 10:00 am on the Buildings Future Stage at The Buildings Show. Visit https://informaconnect.com/ the-buildings-show/program/ to register for the event and sign up for the session. If you miss this session or cannot attend The Buildings Show, you will be able to watch a recording of the panel discussion at BoldTV.ca.
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By Tony Irwin, Interim President, CFAA
On October 24, 2024, Marc Miller, Minister of Immigration, Refugees and Citizenship, announced the 2025–2027 Immigration Levels Plan, which will pause population growth for the next few years. This plan includes controlled targets for temporary residents (e.g., international students, foreign workers) and permanent residents. Canada’s population grew to 41 million in April 2024, with immigration accounting for almost 98 per cent of this growth in 2023.
The 2025–2027 Immigration Levels Plan is designed to alleviate pressures on housing, infrastructure, and social services that are in part due to previous immigration levels. Reducing immigration levels will help to reduce the housing supply gap by approximately 670,000 units by the end of 2027. The plan is expected to produce marginal population decline of 0.2 per cent in both 2025 and 2026, with population growth returning to 0.8 per cent in 2027. These forecasts account for the announced reduction in targets across multiple immigration streams over the next two years. It will also reduce expected temporary resident outfows resulting from the 5 per cent target, natural population loss, and other factors.
As compared to the 2024–2026 Immigration Levels Plan, which was announced last year, the new plan will change its permanent resident targets as follows:
• Decreasing from 500,000 permanent residents to 395,000 in 2025
• Decreasing from 500,000 permanent residents to 380,000 in 2026
• Targeting 365,000 permanent residents in 2027
The Immigration Levels Plan will also support reducing temporary resident volumes to 5 per cent of Canada’s population by the end of 2026. Following the temporary resident reduction measures announced in September and over the past year, Canada’s temporary population will decrease over the next few years, with more temporary residents either becoming permanent residents or leaving Canada.
Canada’s temporary population is expected to:
• Decline by 445,901 in 2025
• Decline by 445,662 in 2026
• Increase by 17,439 in 2027
The reductions in temporary residents are the result of a cap on international students and tighter eligibility requirements for temporary foreign workers. The goals are to decrease volumes and improve the quality of the temporary resident programs. The updated plan will help provinces and territories to align their capacities and allow the population to grow at a sustainable pace.
The 2025–2027 Immigration Levels Plan includes the following additional measures:
• Transitioning more existing temporary residents to permanent residents, who represent more than 40 per cent of overall permanent resident admissions in 2025
• Focusing on long-term economic growth and key labour market sectors, such as health and trades
• Strengthening Francophone communities outside Quebec and supporting their economic prosperity
Bank of Canada lowers policy rate by 50 basis points
On October 23, the Bank of Canada reduced its target for the overnight rate to 3.75%, with the Bank Rate at 4% and the deposit rate at 3.75%.
The Bank expects the global economy to expand at about 3% over the next two years. Canada’s economy grew at around 2% in the frst half of 2024, with growth of 1¾% expected in the second half. Consumption has grown but is declining on a per person basis. The labour market remains soft, with unemployment at 6.5% in September. Population growth has continued to expand the labour force, although hiring has been modest. Wage growth remains high relative to productivity growth.
GDP growth is forecast to strengthen over the projected time period, supported by lower interest rates. The Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. CPI infation has declined from 2.7% in June to 1.6% in September. Infation in housing costs remains high but has begun to ease. The drop in global oil prices has led to lower gasoline prices. The Bank’s preferred measures of core infation are now below 2½%.
It took about a week after the polls closed to complete the recounts, but the BC NDP have secured a thin majority. David Eby is the returning premier of BC. Elections BC released the fnal ballot count results on Monday: the NDP won 47 seats, the BC Conservatives won 44 seats, and the BC Greens won two seats. A majority requires 47 seats. As of this writing, judicial recounts are required in SurreyGuildford and Kelowna Centre, as the margin of victory is less than 1/500th of the number of votes cast.
The Saskatchewan Party secured its ffth straight majority in winning the provincial election, with Scott Moe returning as premier of Saskatchewan. The NDP made signifcant gains in Regina and Saskatoon, while the Saskatchewan Party dominated in rural ridings, as well as Prince Albert, Moose Jaw, and other small cities. The Saskatchewan Party won 34 seats out of 61, which is a decline from the previous election, compared to the NDP’s 27 seats.
The New Brunswick Liberals won the provincial election, replacing the incumbent Progressive Conservatives. The Liberals won 31 seats, the Progressive Conservatives won 16 seats, and two seats went to the Green Party. Liberal leader Susan Holt made history in becoming the frst female premier in New Brunswick’s history. Blaine Higgs, the previous premier of New Brunswick, lost his seat and later stepped down as leader of the Progressive Conservatives.
Nova Scotia is going to the polls on November 26. Tim Houston, premier and leader of the Progressive Conservatives, announced a snap election. This is a somewhat controversial move, as Houston introduced legislation three years ago that set July 15 as a fxed election date for the province. During a rally, Houston stated that an early election is required to address the high cost of living through investments in improving affordability and the housing crisis. He also wants to ensure the provincial election will not confict with a federal election.
On October 8, the Government of Canada identifed 14 new properties within its portfolio that have the potential for housing, which are actively being added to the Canada Public Land Bank. The government will turn these properties into housing through a long-term lease to support affordable housing and ensure public land stays public.
To date, 70 federal properties have been identifed as being suitable to support housing. This list will grow in the coming months, and have been added to the Canada Public Land Bank, launched in August 2024. The Canada Lands Company, in partnership with CMHC, issued a call for proposals for f ve properties located in Toronto, Edmonton, Calgary, Ottawa, and Montréal. The call for proposals in Toronto and Montréal closed on October 1, 2024, while the call for proposals for Edmonton, Calgary, and Ottawa will close on November 1, 2024.
The Government of Canada has received interest and feedback from provinces, territories, and municipalities, as well as developers, housing advocates, and Indigenous groups. This information will be used to develop and bring more properties to market starting this fall.
On September 15, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced several reforms to mortgage rules to improve mortgage affordability:
• The price cap for insured mortgages is Increasing from $1 million to $1.5 million, effective December 15, 2024. The price cap better refects the current housing market and will help more people to qualify for a mortgage with a down payment below 20 per cent. The insuredmortgage cap has not been adjusted since 2012.
• Eligibility for 30-year mortgage amortizations will be expanded to all frst-time homebuyers and all buyers of new builds, effective December 15, 2024. This will reduce monthly mortgage payments and help more people to buy a home. This rule includes purchases of condos.
• These measures build on the Canadian Mortgage Charter¸ announced in Budget 2024, which allows all insured mortgage holders to switch lenders at renewal without having to undergo another mortgage stress test.
On October 8, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside JeanYves Duclos, Minister of Public Services and Procurement, and Terry Beech, Minister of Citizens’ Services, announced several measures to unlock more land for housing.
The federal government will provide technical guidance for lenders and insurers to offer mortgage refnancing for homeowners looking to add secondary suites to their homes, effective January 15, 2025. Combined with the Canada Secondary Suite Loan Program, it will now be easier to convert a basement into a rental apartment or a garage into a laneway home. To support these efforts:
• Homeowners will be able to refnance insured mortgages for secondary suites to access fnancing of up to 90 per cent of the home value, including the value added by the secondary suite(s), and amortize the refnanced mortgage for up to 30 years
• The mortgage insurance home price limit will be increased to $2 million for refnancing to build a secondary suite
The government also plans to conduct consultations on the taxation of vacant land. They will collect feedback from provinces, territories, and municipalities that want to impose vacant land taxes. This would incentivize landowners to build homes on this vacant land.
On October 28, Conservative Party of Canada leader Pierre Poilievre announced that, should he become Prime Minister, he will remove GST on new homes sold for under $1 million for a maximum tax savings of $50,000 on a new home purchase. This would involve increasing the maximum home price threshold to $1 million from $450,000 and the refund to 100 per cent from the current 36 per cent. The tax cut will save $40,000 on a home selling for $800,000 and reduce mortgage payments by $2,200 a year.
To follow is a copy of the body of the press release:
Common Sense Conservative Leader Pierre Poilievre announced today that as Prime Minister he will axe the federal sales tax (or GST) on new homes sold for under $1 million, a tax cut that will spark 30,000 extra homes built every year. Poilievre will also push provinces to remove their sales tax from new home sales, which would save tens of thousands of dollars more for homebuyers.
The move comes after housing costs have doubled in the nine years of the NDP-Liberal government, rising faster than in any other G7 country. Back in October of 2015, the month before Justin Trudeau became Prime Minister, it took only 39 per cent of the median pre-tax household income to cover home ownership costs. Now, it takes nearly 60 percent. While it used to be normal for working class youth to buy homes, now 80 per cent of Canadians tell pollsters homeownership is only for the very rich and there are now 1,400 homeless encampments in Ontario alone.
In Ontario and British Columbia, government charges account for more than 30 per cent of the cost of a new home. The federal government takes the biggest share. In Ontario, about 39 per cent of the total taxes on a new home go to politicians and bureaucrats in Ottawa. One such tax is the GST, adding $50,000 in costs to a $1 million home.
The federal government currently provides a rebate for new housing. Builders or purchasers of newly constructed or substantially renovated homes receive a 36 per cent rebate on the value of a home up to $350,000, providing a maximum rebate of $6,300. This rebate is phased out for homes costing up to $450,000; no rebate is available for homes above this amount.
Common Sense Conservatives will fund this big homebuyers’ tax cut by eliminating $8 billion of bureaucratic programs that Liberals admit have not built a single home. Also, the tax cut will spark 30,000 extra homes built each year, generating more income for construction workers and businesses, and $2.1 billion of revenue for government.
Only Common Sense Conservatives will bring home Canada’s promise: that hard work earns a powerful paycheque that buys affordable food and homes in safe neighbourhoods.
On October 22, 2024, CFAA hosted a complimentary webinar, “Economic Outlook with Benjamin Tal – Looking Towards 2025.” Benjamin Tal, Deputy Chief Economist at CIBC World Markets, is one of Canada’s foremost economic experts, and is known for his ability to break down complex economic trends and provide a clear, actionable forecast for the future. This webinar was geared to business leaders, investors, and rental housing professionals interested in what they could expect for the coming year.
In this webinar, Tal discussed the Bank of Canada’s efforts to bring infation down to their target rate of 2 per cent, and the costs of doing so. He stated the Bank of Canada would prefer to create a recession to slow down the economy, as it’s easier to address than infation.
“Bad news is good news, and I have plenty of good news for you today,” said Tal.
Tal stated that surging shelter costs are driven by higher interest rates. One third of CPI in Canada is shelter infation. Shelter infation does not include housing prices; it includes commissions to real estate agents, rental rates, and mortgage interest payments. Higher mortgage interest payments are disinfationary, as they slow down the consumer. Removing mortgage interest payments from infation puts the rate of infation below the desired target rate.
“The Bank of Canada raised interest rates to fght infation,” said Tal. “Higher interest rates are added to infation through higher mortgage interest payments. It’s like putting a humidifer and a dehumidifer in the same room and letting them go at each other. It doesn’t make any sense whatsoever.”
Tal wants the Bank of Canada to cut interest rates, and he believed they would cut the policy rate by 50 basis points (which happened recently, after the webinar). He stated Canada is currently in a per capita recession, as per capita GDP is falling at 2.5 per cent. Per capita GDP has fallen for f ve quarters in a row. Current Canadian per-capita consumer spending has reached similar levels as prior recessions. This is due to the population boom, which is a result of Canada’s aggressive immigration policy. Over the last two years, other countries had population growth below 1 per cent, while Canada achieved 3.5 per cent population growth.
“The housing crisis we are facing, the shortage in rentals we are facing, is a planning crisis,” said Tal. “It takes municipalities about ten years to acquire the land, service the land, create the infrastructure, and sell the land. Every municipality needs a plan from Statistics Canada about population growth.”
The problem is the numbers changed drastically. In 2013, Statistics Canada gave the municipalities a projection for what the population would be in 10 years. In 2023, the actual population was 1.5 million people higher than the initial projection. Most of those people are non-permanent residents, who compete primarily for rental properties.
Sign-up for CFAA’s National Outlook e-newsletter to receive up-to-date news on what is happening across Canada, as well as industry insights and insider information on CFAA happenings. Email communication@cfaa-fcapi.org to start receiving CFAA’s e-Newsletter today!
The government has changed direction in its immigration strategy. They want the share of nonpermanent residents to decrease from 7 per cent to 5 per cent for 2027. This is a reduction of 870,000 people. It is not feasible to deport this many people within this timeframe. Tal (and the Bank of Canada) believes the government will achieve its targets by turning non-permanent residents into permanent residents, while also decreasing immigration levels.
Tal stated the condo market is slowing. Low-rise development is also slower than normal but in a healthy position. However, the high-rise part of the market is in a recession. The condo market is frozen. Pre-construction condos in the GTA are down signifcantly. While new condo prices have not declined very much, resale condo prices are in dramatic decline. In fact, 81 per cent of condos with a mortgage are cash fow negative, which is a record high number. This has led to an increase in rental supply, as investors are selling.
“The market will eventually clear, with interest rates going down. Investors will be back,” said Tal. “However, we are not building anything now. Presale activity is dead. Two to three years from now, the demand will be there, but the supply will be zero.”
Tal also spoke about food infation, changing unemployment rates, expectations for future interest rate cuts, the decline in excess savings, GIC balances, the impact of the presidential election on trade, and more. Visit https://attendee. gotowebinar.com/recording/7000311700878155264 to watch a replay of the webinar.
Our API enables us to integrate with property managers’ internal systems and third-party services like Yardi and HappyCo.
As we approach the end of another year, it's fitting to reflect on our progress and the challenges ahead. Throughout 2024, FRPO has remained steadfast in its mission to advocate for rental housing as vital to solving Ontario's housing crisis. Our engagement with all levels of government has been unwavering, as we continue to focus on the importance of rental housing in creating a balanced and healthy housing market.
This year, our collaboration with the Ontario government has been focused on fostering a more favourable operating environment for rental housing providers. We've advocated to accelerate processes at the Landlord and Tenant Board, recognizing efficiency is crucial for both landlords and tenants.
Our "Say Yes to Housing" campaign has gained significant momentum, as everyday Ontarians have sent more than 2,000 emails to mayors and city councils across the province. This grassroots effort underscores the public's desire to remove barriers and embrace more rental housing solutions. It's a powerful testament to our communities’ collective voice, urging decision-makers to pay heed to housing needs.
We are also proud to announce the expansion of the Certified Rental Building Program to New Brunswick, following expansions to British Columbia, Alberta, Saskatchewan, and Nova Scotia. This growth shows FRPO's commitment to quality and underscores the need for high-standard rental housing across Canada.
We look forward to the upcoming FRPO MAC Awards, where we will celebrate the excellence and achievements of Ontario's professional rental housing providers. These awards recognize outstanding contributions and inspire continued innovation and dedication within the industry.
As we move into 2025, we remain committed to direct engagement with our members. We aim to advance the stories that matter most to them and their communities, ensuring their voices are heard and their needs are addressed.
In closing, I am grateful for our members’ continued support and professionalism. Together, we are building a future that recognizes rental housing as essential to Ontario's housing landscape. Let's continue to work together in turning our shared vision into reality.
Tony Irwin, President and CEO, FRPO, and Interim President, CFAA
On October 24, Minister of Finance Peter Bethlenfalvy released the 2024 Ontario Economic Outlook and Fiscal Review: Building Ontario for You. The announcement included several new investments and initiatives, including a $200 taxpayer rebate, further extensions of the temporary gas tax and fuel tax rate cuts, an increase in the Ontario Municipal Partnership Fund, and additional funding for Learn and Stay grants for undergraduate students interested in practicing medicine. The economic statement provided an improved forecast for Ontario’s fiscal position in 2024-25, with the projected deficit being $3 billion less than what was expected in the 2024 provincial budget.
However, the minister stated that projected housing starts for the next three years have declined since the last budget. The 2024 provincial budget predicted 87,900 housing starts this year, while the fall economic statement projected only 81,300 homes for this year. This is far below the initial goal of creating 125,000 new homes in 2024. To meet its goal, the government would have to build at least 100,000 new homes per year. As per the economic statement, 2027 will see the highest number of housing starts at 95,300, which is less than what was stated in the 2024 provincial budget. The economic statement also said that homebuilders continue to face a tough economic environment.
As we close out 2024, Let's Build Ontario (LBO) continues to champion the cause for increased rental housing supply, a critical solution to Ontario's ongoing housing crisis. This year, we've refreshed our messaging and visual identity to better resonate with our audience and amplify our advocacy efforts.
• Accelerating LTB processing times: Our renewed focus emphasizes the urgent need to speed up processing times at the Landlord and Tenant Board (LTB). Delays at the LTB not only disrupt the lives of residents but also strain the resources of housing providers. We are committed to advocating for a streamlined process that benefits all stakeholders and contributes to a more stable rental market.
• Fresh visual identity: We've introduced a fresh visual look for LBO on our social media channels, designed to capture attention and keep our content fresh and engaging. This new aesthetic aligns with our strategic goals and helps us stand out in the crowded landscape of housing advocacy.
• Debunking misinformation: Our campaign continues to push back against misinformation surrounding the rental market. By providing clear, factual information, we aim to educate the public and policymakers about the realities of housing supply and the positive role of rental housing providers.
• Showcasing success stories: As we move forward, LBO will spotlight the success stories of our members, highlighting community projects, innovative programs, and the excellent staff members who represent the modern face of Ontario's professional rental housing providers. These narratives not only celebrate achievements but also demonstrate the positive impact of rental housing on communities across the province.
• Engaging with the community: We are committed to building a stronger public profile by engaging directly with the community. Through op-eds, seminars, video interviews, and more, LBO will continue to foster relationships with media and thought leaders, ensuring our message reaches a wide audience.
For more information on Let's Build Ontario, or to get involved, visit our campaign website at letsbuildontario.ca. Together, we can continue to be the YIMBYs Ontario needs, advocating for a future where everyone has access to quality rental housing.
The Federation of Rental-Housing Providers of Ontario (FRPO) is launching an exciting new initiative to collect and showcase positive member stories. Whether it’s a resident’s positive feedback, a community event, or a program that improves residents’ well-being, we are encouraging our members to share.
FRPO’s members play an integral role in providing safe housing and dynamic communities for countless Ontarians across the province. By spotlighting the positive efforts that members take day in and day out, we can showcase how Ontario’s professional rental housing providers work to help bring balance back to a market that continues to grapple with an availability and affordability crisis.
These stories will be featured in our quarterly newsletter and on social media. By sharing your experiences, together we’ll be able to make sure that hard work and resident engagement are recognized.
Submit your stories today and let’s celebrate the good—because every story matters!
The Canadian Certified Rental Building Program – PM Expo at The Buildings Show
December 5, 2024 10:30 am – 12:00 pm
This session explores why landlords are enthusiastically embracing the Canadian Certified Rental Building™ (CRB) Program. The speakers (Tony Irwin, President and CEO, FRPO; Deborah Cohen, President, Performance Solutions Network
Corp.; Colleen Krempulec, Managing Partner, Head of Sustainability and Brand, Hazelview; and Hero Mohtadi, Vice President, Residential Operations and Asset Management, Dream) will discuss how this program offers unparalleled value to both landlords and renters alike. Attendees will learn firsthand why the Canadian CRB Program stands out for its quality assurance in the rental housing industry while providing renters with a trusted standard for selecting their apartment homes. This session will also present how this program supports the industry’s Environmental, Social, and Governance (ESG) transformation while enhancing professionalism and service quality for rental housing consumers nationwide.
2024 FRPO MAC Awards
December 5, 2024 5:00 pm - 9:00 pm
The MAC Awards is the most important annual event for our members and recognizes the leaders in Ontario’s vibrant rental housing industry. We are so excited to celebrate this year’s MAC Awards in person and invite you to be part of it! This is a must-attend event for real estate and property management firms, large and small alike. The 2024 MAC Awards will be held in conjunction with the Buildings Show and PM Expo. We hope you will join us for the industry event of the year!
Find out more about these awards by visiting www.frpomacawards.com.
Special member meeting – By-law approval
November 12, 2024 9:00 am - 9:10 am
FRPO held a special meeting of its members to seek approval for an updated by-law. The bylaw has been revised to align with the Ontario Non-Profit Corporations Act, and after receiving approval from the FRPO Board, it now requires member endorsement. Advance registration was required, and voting was limited to one representative per regular voting member.
FRPO is the largest association in Ontario representing those who own, manage, build and fnance residential rental properties.
For membership inquiries please contact Lynzi Michal, Director, Membership & Marketing
Federation of Rental-housing Providers of Ontario 801-67 Yonge Street, Toronto, Ontario M5E 1J8 416-309-8744
lmichal@frpo.org www.frpo.org
Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more efectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, fnance and accounting, to actual physical, on-site management, we oversee everything.
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EOLO provides tips for the successful implementation of a green bin program in multires housing based on the City of Ottawa's requirements and recommendations, and suggestions from a leading private sector consultant, Natalia Snajdr. pg. 49
LPMA discusses the reasons for small landlords to not forego rent increases, including the potential consequences when selling the property in the future. pg. 53
HDAA discusses the general softening of rental pricing in Hamilton and across Canada, the introduction of new by-laws affecting the rental housing industry, and encampments throughout the city. pg. 57
RHSK introduces the association’s new name and outlines the details of its housing policy blueprint. pg. 61
Complimentary technical help and incentives up to $200,000*
Heating season is around the corner. Make capital improvements now to help save energy† and reduce operating costs. With the Afordable Housing Multi-Residential Program, you receive financial incentives up to $200,000 for boilers, energy-efcient technologies and energy assessments. Plus, free in-suite upgrades and expert assistance every step of the way.
Why upgrade now?
• Reduce energy, maintenance and operating costs.
• Control costs more efectively with automated systems.
• Improve the energy efciency of your building.
• Enhance resident comfort, health and well-being.
Incentives for building upgrades and more:
• Boilers and boiler controls
• Building automation controls
• Variable frequency drives
• Water heaters
• Hybrid heat pumps
• Ventilation technologies
Is your building eligible?
This program is for:
• Eligible private market-rate multi-residential buildings‡
• Shelters and co-ops
• Social, municipal and nonprofit housing providers
Contact an Energy Solutions
The City of Ottawa has begun a four-year rollout of mandatory green bins in the multi-residential and condominium sectors. Set out below are ideas for how to make green bins work, and work well. As well as working on that issue, EOLO continues to consult with City staff on the City’s water rate review, and on numerous housing policy issues.
We hope you enjoy the holiday season.
- John Dickie, Chair, Eastern Ontario Landlord Organization
City Solid Waste staff issued a policy change email in August to all multi-family properties that receive City solid waste collection services, setting out the next steps of the rollout plan for organics recycling in the multi-family housing sector.
The City will accept continued requests from property managers to enroll in the green bin program voluntarily, which allows more timing fexibility through the year.
City staff presented at EOLO’s Education Event on October 16, along with Natalia Snajdr. Natalia is the leading private sector environmental consultant in Ottawa, an expert in green bins. She can work with you to fnd the best approach to green bin implementation. You can reach Natalia through the “Contact Us” page on her website, SustainableStep.com.
This article will address the City’s requirements, and many tips for success.
Along with the policy change email, the City distributed guidance and tips in the form of a PowerPoint slide deck, and several attachments. What follows builds on that deck and Natalia’s comments.
At the EOLO Event, the panelists agreed that the two key factors in achieving a successful green bin program are:
• Resident engagement
• Keeping the green bins “ick free”
Solid Waste Services staff are making individual contact with managers of certain properties. The frst tier to be approached will be properties that currently receive regularly scheduled additional collections above the normal allocation, but are not enrolled in the organics program. (Those properties pay an extra fee for the additional collection.)
For properties with signifcant physical limitations, managers can request an evaluation as to whether they are entitled to a delay in activating organics recycling to allow them time to plan and make renovations to achieve a more effective organics recycling program. Properties with such limitations are said to fall in tier 4. In providing the extension of time, the City will expect renovations to be considered, planned, and implemented.
When the City moves on to tiers 2 and 3, the Solid Waste staff plan to send another broadcast email alerting everyone in those tiers to the beginning of onboarding in the next tier. Tier 2 will be buildings with less than 100 units, and tier 3 will be buildings with 100 units or more. Tier 2 onboarding is expected to begin in about nine to 12 months, while tier 3 will likely begin in the spring or summer of 2026.
When work begins on each “tier”, the City’s Solid Waste staff plan to contact property management companies in alphabetical order. Within reason, property managers will usually be able to assign the order for their properties to be onboarded within each tier.
To keep the green bins “ick free”, the key factors are the following:
• Place them in a controlled environment with convenient tenant access. A garage is often a good choice, or a garbage room or cool room.
• Avoid placing the green bin in direct sunlight. If the bin must be outside, then a cubby can be used to provide shade.
• Make sure the green bin lid closes and is kept closed. Maggots develop when fies gain access to the bin and lay eggs. Avoid that.
• Ideally, site staff should check the bins every few hours to ensure the lids are closed and the area is clean. Frequent checking, and catching problems early, means the need for clean-up is minimized.
• Green bins can be lined with plastic or paper liners to absorb moisture and minimize odour.
Keeping the green bins “ick free” starts with helping residents to keep their temporary storage of organic waste “ick free”. For all your rental units, the City will supply free kitchen catchers, which can be placed on a counter. They come in beige plastic, and are about one foot on each side and one foot high, with a lid. Residents are welcome to use them, but do not need to.
The kitchen catcher can be lined with newspaper or advertising fyers (which is then used to wrap up the waste), or food waste can be kept in plastic bags (like bread bags or milk bags). Fat can be accumulated in paper coffee cups or ice cream containers. Using such mini-containers, food waste can be kept in the fridge or freezer until it is time to take it to the green bin. The City includes a tip sheet with those ideas for residents.
Good communication with residents starts with good communication with all building staff, as to where and when the green bins will be installed (and what they will need to do). Green bins are a good environmental practice, called for by provincial policy, and necessary to manage the cost of garbage disposal. There are multiple ways to notify residents of the new City requirement, including newsletters, fyers, and notices posted in lobbies, mailrooms, garbage rooms, on doors or above the bins. Key issues to address include a brief statement of the goals, timing, and information about what residents need to do (including what waste goes in which bin).
In its slide deck, the City makes suggestions for involving residents in “Green teams” to promote the use of the green bins, and also to acknowledge successes and individual support. In rental complexes with multiple buildings, results could be reported on the basis of separate buildings to spur competition among the buildings. Low-cost or no-cost awards, such as recognition, can also stimulate resident involvement.
Natalia also recommends recording the week-to-week success of the program and reporting that to the residents.
In many cases, the City can provide environmental education assistants (EEAs) to work with property managers and their residents to provide on-site outreach, onboarding, and education about organics recycling. By arrangement with managers, the EEAs can conduct meetings in
lobbies, combining that with one-on-one greetings and orientation as residents go in and out.
The EEAs can also do door-to-door outreach to tenants, including distribution of the kitchen catchers. All the EEAs’ work makes it clear the call to separate organic waste is coming from the City, rather than as a new demand initiated by the landlord. The EEAs also bring language capabilities, videos in multiple languages, and printed material with clear visuals, minimizing the language issues faced in rental housing.
Natalia recommends a plan be made to:
• Decide on the green bin locations and do any work needed (such as building cubbies and creating signage)
• Decide on timing
• Educate residents through lobby meetings
• Have all the liners and cleaning supplies on hand
• Do any door-to-door outreach, and distribute the kitchen catchers
• Install the green bins.
The plan can include a countdown to the “launch day” with posters announcing the launch.
Other resources and issues
EOLO is pleased with the work of the EEAs, and supports more City staf fng to expand that work. Besides the EEAs, the City has other staff who can assist with issues at properties. They include solid waste inspectors and others who can provide suggestions about green bin placement.
At the EOLO event, an EOLO member asked about a problem of residents dropping non-organic garbage into the green bin since it was the closest to the door. The panelists agreed that in that case, the green bin had to be removed (temporarily, to be reintroduced later). They emphasized the value of checking the bins often to catch issues early.
Another EOLO member volunteered they have a security camera in the garbage room, and make phone calls to residents who are caught on camera disposing of their waste incorrectly. The manager has not reached the stage of issuing warning letters or N5s yet because the phone calls seem to correct the problem.
In the expansion of the green bin program, we must remember the implementation is not “once and done.” Success for the program requires work at implementation, follow-up work to remind tenants what they need to do, and educating new tenants. Subject to the City’s resource limitations within the Solid Waste charges, the City will make EEAs available for follow-up work.
If there is a demand, EOLO plans to offer one or more tours of buildings with green bin setups, and/or a special EOLO education session on options and best practices. If you want such programing, please email events@eolo.ca to express your interest.
See EOLO.ca for more information about those and other resources.
Besides the presentation and panel on the green bin program, EOLO’s Fall Education Event included a panel of EOLO directors speaking about the current and projected state of the Ottawa rental market. EOLO thanks Geoff Younghusband of Osgoode Properties, Dan Dixon of Minto REIT, and Ken Halef of District Realty.
Thanks to the broad geographic distribution of the portfolios of the three rental providers, and the differences between the buildings they own and manage, the panelists provided a comprehensive picture of rental demand across the whole spectrum of Ottawa's purpose-built rental market.
EOLO invites Ottawa area landlords to join the organization. Have your interests and concerns heard, and benefit from EOLO’s support. As an EOLO member, you will be able to:
• Receive prompt emails of relevant City rule changes
• Attend two networking receptions a year
• Attend two free education events a year
• Receive all 6 annual issues of RHB Magazine with current developments, City and provincial funding programs, and landlord-tenant laws.
To apply for membership, go to www.eolo.ca, download the membership application form and send it to us at the contact info on that website.
LPMA’s fall meeting brought members up to date on a new bylaw aimed at protecting tenants from bad-faith renovictions. City Hall’s Ethan Ling said landlords will need to pay $600 for a rental unit repair licence when they issue an N13 notice of termination for repairs/ renovations of a rental unit so extensive that tenants will be required to move out. Lawyer Kristin Ley described the process of recovering vacant possession of rental units. She also outlined pending changes once Bill 97 is fully proclaimed. The bylaw was passed in September and will take effect on March 1, 2025.
The PM 101 seminar series will be held on November 5 and November 19. Topics will include screening prospective tenants, understanding lease documentation, landlords’ obligations for maintenance and repair, and much more. Finally, I would like to thank members who raised $10,000 for St. Joseph’s Hospice of London at our annual golf tournament. It was great to see our members support this much-needed facility.
Warm regards,
- Richie Anand, President, LPMA
Increasing the rent annually by the guideline amount is one of the few ways landlords can offset their expenses. For some landlords, though, a rent increase isn’t worth the risk since many fear they could lose good residents and end up replacing them with less than stellar ones.
London lawyer Joe Hoffer says landlords who forgo rent increases are not that unusual.
“It’s always small landlords typically and they’ve got a good tenant who looks after the place well and they don’t have any problems with them.”
In developments with single-family homes, a landlord may strike a deal with a tenant to rent a home reasonably. The landlord promises not to increase the rent in exchange for the tenant agreeing to take care of maintenance and repairs. Ten or 15 years later, the tenant wants the landlord to pay for a capital cost, such as a new roof, and the landlord balks, creating an impasse.
Other landlords are content not to make rent increases because the rent they charge covers the carrying costs for their building.
That was the case for a couple who bought a 17unit apartment building with friends in Kitchener in 1982. They rented out units to tenants who couldn’t otherwise have afforded an apartment and they decided not to increase the rents regularly. That decision also made it diffcult to charge market rents on turnover because residents didn’t move due to the building’s affordability.
Now in their 80s, the owners are ready to sell the building. However, they can’t derive the return they expected because the affordable rents have resulted in the market value being very low compared to other similar buildings. Although the owners are asking the tenants to leave, the residents realize it would cost them a great deal more to live elsewhere. They now appear to be waiting until the owners are desperate enough to pay them to leave.
Andrew Macallum, a sales representative with Royal LePage Commercial in Kitchener, says small owners often harm themselves by not increasing the rent. Even a $30 increase per month translates into thousands of dollars over many years.
“When it comes time to sell, the value of the property is much different because of that. I would call it (foregoing a rent increase) a mistake,” Macallum says.
Small landlords sometimes feel guilty about increasing the rent and think they should discuss it with tenants beforehand. That isn’t the case.
“It’s a fnancial interaction and that’s the way it has to be treated or else a property owner is putting themselves at risk of losing value on that place eventually,” Macallum observes.
There is no remedy in these types of situations, according to Hoffer. He recommends that landlords increase the rent while they still own the building. Unfortunately, there is no provision that allows them to catch up after many years of charging low rents.
“It’s a common problem. With landlords, no good deed goes unpunished and that’s how they get punished because they haven’t increased the rent and there’s no provision that allows them to catch up after so many years, so they’re stuck. They’re rent controlled at what the original rent was,” Hoffer says.
If an owner decides to sell, prospective purchasers will base their decision to buy on the building’s structure and revenue from rents. Purchasers will expect the owner to lower the purchase price if the revenue isn’t enough to support the mortgage payments.
“That really kills the equity and the return that the landlord expected to get,” Hoffer says.
To make matters worse, the owner can’t guarantee a prospective buyer vacant possession. The tenants might verbally agree to vacate, but then renege once they realize how much more it will cost them to rent elsewhere.
“Unless they have a proper agreement to terminate with the tenant, or it’s a proper notice of termination because the purchaser intends to live in that unit, that tenant doesn’t have to leave. As long as they keep paying the rent and behave themselves, they can stay as long as they like,” Hoffer says.
Having a tenant who refuses to leave will quash the sale. And because the property is worth much more with the unit vacant than it is with the tenant paying a low rent, that provides small landlords with an incentive to vacate the unit. As a result, many illegitimately evict a tenant by alleging that they are undertaking repairs or renovations. Their aim is to skirt the security of tenure provisions that are in place under the RTA, Hoffer says.
“It happens mainly with small landlords who either don’t know the law or they don’t care what the law is. They’re desperate to get a return on the investment.”
If purchasers intend to buy a single-family home, they should be aware that it will include the tenant if the tenant refuses to vacate. It can take at least f ve months before a landlord has a hearing at the Landlord and Tenant Board and, even then, there are defences that will allow the tenant to stay.
“If it’s a purchaser, I would say make sure the deal is dead unless there’s vacant possession,” Hoffer says.
There needs to be a provision in the agreement of purchase and sale outlining what will happen if the tenant refuses to move. In many cases, the seller agrees to issue a notice to the tenant to vacate on the buyer’s behalf, but the tenant is still in the unit the day after the sale closes; the buyer is usually staying in a motel waiting for the tenant to be evicted.
"This happens all the time,” Hoffer says. “A tenant who knows what they’re doing can stay there for
over a year. And there are lots of instances of that out there.”
While the deal can close, it will be up to the buyer to decide what they intend to do with the property. For example, if the buyer’s own house is sold, the buyer will need to rent an apartment to avoid the high costs of staying in a motel waiting for the tenant to be evicted. If the buyer decides to sell, the Board will throw out a pending application for eviction because that individual no longer needs the rental unit for their own possession.
Other dilemmas may arise depending on the situation, Hoffer says. The deal may be deferred pending closing, in which case the seller usually covers the cost of deferral and the buyer covers their own cost of residing elsewhere. If the Board refuses eviction, however, the deal may never close. The building status is “frozen” until the Board deals with it, Hoffer notes.
Macallum says one of the frst questions buyers ask is whether a building is vacant and, if not, whether the seller will ensure that it’s vacant once it has been sold. Even when landlords pay tenants a large fnancial incentive, a signed agreement doesn’t always ensure that tenants will leave. The only guarantee is to vacate the property frst and then begin the process of selling it.
Macallum recommends that sellers state in the schedule of the agreement of purchase and sale
whether the tenant is leaving. Buyers should include a clause stating that they are agreeing to vacant possession, as well as their defnition of what vacant possession entails. They should then submit it to the seller for confrmation. If the seller can’t provide vacant possession, they should include that information in the schedule with a copy of the lease.
“It is important to clarify this in writing because there is greater value in the property being exchanged vacant. And if a buyer/seller is not informed, they could inadvertently promise something that they wouldn’t be able to follow through on,” Macallum says.
“We’re at a point now where it’s incumbent on both parties to clarify whether or not the place is going to be vacant instead of leaving it as a gray area, which will inevitably turn into a very messy situation.”
In general, Hoffer advises building owners to increase the rent every year. “It’s about the only thing you’re allowed to do.”
Macallum agrees. When he was starting out as a landlord and investor 18 years ago, a mentor advised him to increase his tenants’ rent every year.
“In hindsight, that was probably the best advice I ever got,” he recalls.
The HDAA has had a busy start to the fall with a dinner meeting in September and our muchanticipated trade show in October. We look forward to another dinner meeting in November before the end of the year and holiday season before we pick things up again in the new year. There will be a few new by-laws coming into effect in the new year as well, and we are sure to hear more news on the rolling out of others directed at the rental housing industry.
- Daniel Chin, President, HDAA
There has been a general softening in rental housing pricing within Hamilton and throughout Canada more generally this year. As reported by Rentals.ca, average rents throughout all residential property types in Canada increased by 2.1 per cent year-over-year this September, which has been the smallest annual rent growth since October 2021. Hamilton has seen average rent for one-bedroom units drop 6.1 per cent this year to $1,767 and 5 per cent for two-bedroom units to an average of $2,165. Despite this softening, rents are still approximately 25 per cent higher than they were three years ago because of the pandemic and an increase in immigration at the time. Part of this softening is due to a decrease in non-permanent residents, as foreign student enrollment has dropped by about half from all-time highs. It is hard to predict if rental pricing will continue to soften in the new year, as supply continues to be a main factor driving up pricing, but rental costs would still need to come down significantly to be affordable for those in lower income brackets.
Hamilton will see various by-laws aimed at the rental housing industry come into effect in the new year, including the Renovation Licence and Relocation By-law (a first of its kind in the province), the Safe Apartment Buildings By-law, and likely an Adequate Temperature Bylaw, as well as more broad by-laws such as the Vacant Unit Tax By-law. We also expect to hear news on the Licensing Pilot Project and
whether it will continue, as well as whether it would be implemented city-wide if so. We are seeing other municipalities consider such bylaws or having already passed similar by-laws in their jurisdictions, leading to what seems like a province-wide focus on rental housing and placing higher restrictions on landlords.
The new year is leading to many changes and challenges for the rental housing industry. The HDAA will continue to advocate for our members and the rental housing industry as a whole and invite all housing providers to play a larger role in connecting with local councillors to bring about change and stop dangerous by-laws from continuing. We will provide updates in the new year when the by-laws start rolling out and as we hear more about their effects.
After over a year of allowing encampments in the City, which resulted in dozens of complaints from residents and strained City resources, the City of Hamilton is looking to create a sanctioned encampment site and expand the number of shelter beds. City council voted 12-4 to establish an encampment site at Barton and Tiffany just north of the downtown core, which is part of a longer-term plan to help the nearly 300 people living in encampments across the City. The proposed encampment site will consist of tiny shelters or cabins where those sleeping in tents can relocate. As the new encampment site already has tents established, they will be disbanded
during the construction with those individuals impacted getting the first option to seek to reside in the new structures. This new encampment site is estimated to cost $3.9 million annually with a $2.8 million cost up front in creating the shelters as well as washroom facilities. It is also predicted the City will pay $2.1 million in 2024, and likely as in following years, if still in place, to enforce this new encampment protocol generally. Council also voted to add 192 new temporary shelter beds, raising the number from 341 to 533, expanding their shelter system.
A further motion was moved and approved in Wards 2 and 3 for a proposed encampment ban, which would prevent tents from being set up in parks within one kilometre of any shelter; a similar ban or exclusion zone is planned around the new Barton-Tiffany sanctioned site. Similar motions will likely be moved in other wards in the City. The concern is many homeless individuals will not move to a shelter, many stating they consider them dangerous, but will just relocate to other parts of the City where smaller encampments are already forming. Unfortunately, the homelessness issue in Hamilton continues to grow with no real plan to assist individuals in a way that best serves their needs. A sanctioned site is just a bandaid solution for a much larger problem.
The HDAA was excited to have Marvin Ryder speak at our September dinner meeting. Marvin is a long-standing professor of over 40 years at McMaster University. He has sat on numerous boards and written case studies illustrating marketing, business strategy, and entrepreneurship problems, half of which have been published in Canadian marketing texts. Today, he is most recognized for nearly 250 appearances annually on television and in newspapers commenting on business issues of the day. Marvin provided our membership with a national, provincial, and local economic outlook for 2024 and 2025.
Marvin began speaking on likely plans regarding interest rates. Issues of high interest rates stemmed from pent-up demand after COVID without the supply in place to keep up, which had started to increase inflation numbers. The Bank of Canada had to step in and raise rates to curb growing inflation. This in the past would typically trigger a recession; however, the strategy was to cool the economy without slipping into full recession and we have seemed to skirt that. It may be the first time in Canadian history we have been able to beat inflation without falling into a recession. With inflation cooling, the Bank of Canada has now started lowering interest rates; it is expected there will be more cuts this year and in 2025, especially if inflation does not increase. Once we are at 2 per cent inflation, the economy should be more normal and rate cuts will likely no longer be necessary. Projections are that we may be down to a 3 per cent interest rate by the end of 2025. Canada should see significant growth in 2025 and 2026 as well. However, day-to-day costs, such as food, are not likely to decrease unless we are in a period of deflation or a recession.
Unemployment rates have risen to about 6.6 per cent, reaching a seven-year peak outside of COVID years, which has prompted a call for more rate cuts. Higher unemployment rates are not necessarily due to job losses but more an increase in immigration numbers. The employment bump should be short-term, as we have been seeing reduced immigration quotas. There is a double-edged sword when it comes to immigration numbers: too high a number can cause issues as we see today but immigration is needed to stop population decrease. As is the case in many countries, birth rates have been decreasing and we are
unlikely to keep our population up if that trend continues. Sustaining a healthy population in the grand scheme is important for many factors, such as keeping tax rates lower. In terms of a federal election, it is likely we will have an election in 2025 and further separation of the NDP government from the Liberal government. Things do not look good for the Liberal government and there have been talks about whether Trudeau will run again. Marvin also spoke to the homelessness issue in Hamilton, saying the issue is much more visible with encampments throughout the City. Encampment protocols put in place during COVID have continued, which has encouraged growing encampments instead of shelter use. As mentioned above, the lack of shelter use is likely due to issues within shelters, which make many uneasy to use them.
Also discussed were new capital gain changes, which seem to be directed at those at higher income brackets with secondary properties. The government is likely trying to balance protecting property values, as many use their properties as a retirement egg, while aiming for more affordable housing. Other changes aimed at first-time home buyers, as well as those renewing their mortgages, should make things easier for those wanting to enter the housing market.
The HDAA held our trade show later this year, taking place on October 8. The trade show was a great success with dozens of industry suppliers attending as vendors, as well as an informative and engaging keynote speaker panel.
Keynote & trade show sponsors:
• Home Depot Pro
• Metro Compactor Service
• ResQ Canada
• Xcel Construction Limited
Trade show sponsors:
• Acumen Insurance Group
• Apartments.com
• B.T.R Property Management & Watr Tek Pro
• BuildingLink
• PayProp
• Read Jones Christoffersen
Food sponsors:
• Pretium Engineering
• Yardi Canada
The trade show began with our keynote speaker event, where panelists Kris Boyce from Signet Group, Theresa Lapensee from Medallion, Kevin Lundy from Cohen Highley, and Tony Irwin from FRPO and CFAA discussed by-laws and legislation that will be changing the rental industry and what housing providers can do to prepare.
We look forward to holding another successful trade show next year and will send communications once we have secured a date.
The HDAA will be holding our next dinner meeting on November 13. Make sure to mark your calendars and keep an eye out for emails with more details.
Our first HDAA dinner of the new year will be held on January 8. Check our website and watch for communications for more details.
Hamilton & District Apartment Association
Since 1960, the Hamilton & District Apartment Association has grown significantly. Our members manage over 30,000 units throughout Hamilton, Burlington, Brantford, Guelph, Mississauga, Oakville, St. Catharines and into the Niagara Peninsula. The association is a highly respected organization, sought out regularly by government, industry, media and the public.
Interested? Call us or join online! Ph: 905-616-2058 Web: www.hamiltonapartmentassociation.ca
Become a direct member of CFAA today!
On behalf of our Board of Directors, it’s my pleasure to introduce you to Rental Housing Saskatchewan, the new operating name for the Saskatchewan Landlord Association.
This change re fects our commitment to better represent the diverse needs of rental housing providers, property managers, real estate investors, and the entire rental housing industry.
After careful consideration and feedback from our members and stakeholders, we recognized the need for a name that encapsulates our industry and uses language that represents what our members do every day: provide rental housing to the people of Saskatchewan.
The new brand embodies the province’s shape and includes a door that opens, a testament to how our members and the industry consistently open doors for Saskatchewan people by providing housing in a province with so much opportunity. Fresh, versatile colours present a vibrant brand that is focused on professionalism and excellence.
“Our new name, Rental Housing Saskatchewan, demonstrates our dedication to fostering a thriving rental housing industry that benefts everyone involved,” said Cameron Choquette, Chief Executive Offcer of Rental Housing Saskatchewan. “This rebrand is the frst step in a new chapter of growth as we celebrate our thirtieth anniversary and look forward to leading the industry with our new brand.”
As part of this transition, Rental Housing Saskatchewan will continue to provide valuable resources and be here for our members with education, advocacy, and member support services. A new website will be launched in early 2025.
If you or a colleague need assistance with rental housing matters, please call our of fce and we’d be happy to help.
Thank you to our members for their continued support. We are much stronger when we are united together as a team.
- Cameron Choquette, CEO
2024 Saskatchewan Rental Housing Conference, presented by The Home Depot
On October 9 and 10 in Saskatoon, we hosted our annual conference for a sold-out crowd of more than 250 rental housing providers, exhibitors, and speakers. It was a jam-packed day and a half that began on October 9 with revealing our new brand and name at our 30th anniversary party
and cocktail reception, presented by Apollo, BFL Canada, and FlexNetworks.
The following day was filled with education sessions, a keynote speaker, and a sold-out tradeshow that featured 26 exhibitors from across Canada looking to partner with rental housing providers. The support of our exhibitors and sponsors made this annual event a big success for the association and our members.
2024 Rental Housing Awards, presented by Yardi
Thanks to the support of Yardi, the fourth annual Rental Housing Awards were handed out at our conference this year.
The winners of this year’s awards are:
Property Manager of the Year – Amberlynn Jacques, Deveraux Apartment Communities
On-Site Employee of the Year – Ziyu Huang, Mainstreet Equity
Off-Site Employee of the Year – Julianne McDowell, Avenue Living Communities
Customer Service Excellence – Gord Sinclair, Deveraux Apartment Communities
C rime Prevention and Tenant Safety Awards – Tammy Vaadeland, Saskatoon Real Estate Services and Weidner Apartment Homes
Service Member of the Year –Yardi
Rental Development of the Year – WestCliff Properties
Executive Leadership Award – Jamie McDougald, Chief Operating Officer of Deveraux Apartment Communities
Community Impact Award – Real Canadian Property Management Professionals
Rental Housing Provider of the Year –Hazelview Properties
Together with the Saskatchewan REALTORS Association and the Saskatoon and Regina Homebuilders’ Associations, we released Secure Homes, Strong Future, a housing policy blueprint for the 2024 provincial election campaign happening in Saskatchewan.
Saskatchewan’s residential housing industry, including construction, rental, and real estate, faces a significant gap in housing inventory to accommodate future population growth. Secure Homes, Strong Future focuses on policy amendments and funding investments that would support the province’s residential housing industry and provide homes for Saskatchewan’s growing population.
“Saskatchewan continues to attract, house, and employ people at record levels – a growing province means more housing units are required to ensure that the Saskatchewan advantage remains intact,” stated Saskatchewan’s Housing Leaders. “Our plan proposes common-sense ideas to build more affordable homes faster by improving affordability, unlocking development, lowering construction costs, and setting the stage for the future.”
The blueprint has four priority areas and includes several recommendations for provincial political parties to consider:
1. Enhancing affordability and reducing housing costs
• PST adjustments for affordable home construction
• Reinstate the home renovation tax credit
• Make the secondary suite incentive (SSI) program permanent
• Avoid adding costs through changes to codes and regulations
2. Building more homes faster
• Audit of underused government properties for affordable housing
• Provide provincial support for infill projects
• Support housing enabling and growth infrastructure
3. Stronger provincial leadership on housing
• Establish a provincial ministry of housing and infrastructure
4. Supporting rental housing providers & protecting tenants
• Enhance efficiency and accessibility in rental housing provider-tenant dispute resolution
• Bolster collection mechanisms for rent arrears and damages
The full blueprint can be found on our website. Keep an eye on our social media feeds to see when provincial parties release platform ideas that support our recommendations in the blueprint.
The NDP’s proposal to create additional legislation that regulates rent increases will scare away housing development, decrease competition, and reduce the quality of housing stock over the long term. Saskatchewan consistently ranks as one of the most affordable provinces to rent a home. Any government should focus on removing barriers for development so more units can be built, which will stabilize rental rates.
The association understands the pressures that tenants are facing. If a tenant feels they have been subjected to a retaliatory rent increase, they can contact the Office of Residential Tenancies. Rental Housing Saskatchewan members agree to abide by a code of ethics that mandates compliance with the province’s Residential Tenancies Act.
“We’d encourage the NDP to meet with our members to understand the costs and challenges of operating rental housing and focus on how we can build more rental housing for a growing province,” said Cameron Choquette, CEO of Rental Housing Saskatchewan.
As the voice of landlords in Saskatchewan, we deliver knowledge, promote best practices, and advocate for a healthy and resilient rental housing industry. We are the leading community of industry professionals who are proud to provide safe, high-quality rental homes for the people of Saskatchewan.
We work to ensure Saskatchewan’s rental housing industry meets the needs of renters, owners, and managers. Our team is dedicating to serving our members in any way that we can.
Cameron Choquette, Chief Executive Officer
1705 McKercher Dr, Saskatoon, SK S7H 5N6
eo@skla.ca
Brought to you by Yardi Canada Ltd
By Peter Altobelli, Vice President and General Manager, Yardi Canada Ltd.
The Canadian multifamily rental landscape is rapidly evolving, making it essential for housing providers to stay informed about emerging trends. However, much of the industry data available is outdated, creating challenges in effective planning and management. The 2023/2024 Canadian Multi-Residential Marketing & Leasing Snapshot Report by simplydbs is a vital resource.
Drawing from surveys of 20,000 tenants and housing providers across 400,000 units in Canada, this report reveals significant gaps between what renters want and what housing providers offer. Understanding these gaps is crucial for staying competitive in an increasingly dynamic market.
Bridging the online divide
The report uncovers a disconnect between how renters and housing providers approach online property listings. While many housing providers prioritize internet listing services (ILS) for marketing, renters show a strong preference for property-specific websites (PSWs). The findings show that 92% of tenants consider a PSW essential or nice to have, while 76% still find ILS sites important during their rental search. To meet tenant expectations and improve retention, housing providers should enhance their property-specific websites. This not only boosts visibility and builds trust but also creates a more personalized experience that resonates with prospective tenants. In a market where online impressions can make or break a rental decision, a compelling PSW is no longer optional—it's a necessity.
Responding to tenant expectations
Effective communication plays a vital role in a tenant’s decision to rent and stay at a property. The report highlights the importance of response times in tenant satisfaction, noting that 87% of renters are comfortable with a response time of up to 24 hours for inquiries.
Using a 24/7 omni-channel chatbot can help meet this expectation, allowing onsite staff to focus on higher-value tasks like in-person tours. This immediate engagement can be the difference between securing a lease and losing a prospect, especially in today’s fast-paced rental market. Additionally, swift communication enhances the tenant experience, fostering long-term loyalty and reducing turnover rates.
Tackling
Fraudulent rental applications are becoming more prevalent across Canada, posing a significant risk to housing providers. The report shows that 41% of housing providers have seen a rise in bad debt from unpaid rent due to fraudulent applications, with an increase of 1-10%, while 14% report an
even more concerning rise of 11-30%.
These findings underscore the importance of strong identity verification processes to protect against fraud. Providers who fail to address this issue may face financial losses and long-term damage to their reputation, making it harder to attract quality tenants. By investing in advanced fraud prevention tools, providers can safeguard their assets and maintain tenant integrity.
Embracing digital transformation
Digital tools are indispensable in today’s rental market. The report reveals a strong demand from tenants for mobile technology, with 88% of tenants using a building app to manage maintenance requests and 72% wanting an app for package delivery notifications.
Housing providers who integrate these digital solutions into their operations can improve resident satisfaction and streamline their processes. Moreover, these tools offer data insights that help providers anticipate tenant needs and proactively address issues, further enhancing the living experience. Embracing digital transformation not only meets current demands but also positions providers to adapt quickly to future trends, ensuring long-term success in an increasingly tech-driven market.
Closing the gap
To remain competitive, housing providers must bridge the gap between renter expectations and the services they provide. The 2023/2024 Canadian Multi-Residential Marketing & Leasing Snapshot Report offers actionable insights that help attract, convert and retain quality tenants, leading to improved satisfaction and operational efficiency. For a comprehensive look at these findings, download the full report at simplydbs.com/ marketing-leasing-report.
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