Recent investments in Canadian multi-residential assets have generally yielded strong returns thanks to cap rate compression, low interest rates and strong net operating income growth. Demand for apartment living is being bolstered by affordability issues in home ownership, a demographic surge in renters and Canada's higher immigration rate. These factors have resulted in an increased supply of new purpose-built rentals and more competition to acquire existing multi-family assets. With potential challenges for the asset class arising in the changing political and economic landscape, can stability in multi-family returns be projected through 2020?
