If the first two months of 2025 are telling, it’s going to be a long four years. President Trump’s threatened tariffs on Canada and Mexico were lifted hours before coming into effect February 4, but the economic chaos and uncertainty remain. Should the tariffs still be implemented in the coming days (or months), it will undoubtably have a destructive impact on the homebuilding industry on both sides of the border.
“The move is reckless and will cause economic hardship in both the U.S. and Canada, affecting tens of billions of dollars of trade in construction materials alone,” said Richard Lyall, president of the Residential Construction Council of Ontario (RESCON).
The National Association of Homebuilders (NAHB) also denounced the move, asserting that Trump’s tariffs on Canadian lumber and other essential building materials would increase the cost of construction, discourage new development, and raise the cost of U.S. housing.
On the positive side, Canada showed strength and solidarity during this tumultuous period and one can only hope new opportunities will come of it, whether it’s in the form of improved interprovincial trade conditions or expanding our relations with other allies. But as provincial and federal elections loom and political parties jockey for support, the future is impossible to predict.
In the meantime, the rental housing market in Canada continues to perform well despite ongoing supply issues. In this issue we look at several new residential properties currently in development, including two office-to-residential conversions in Ottawa. We also look at energy management in aging assets, and the latest best practices for bringing older properties up to modern standards.
Stay strong, Canada!
Sincerely,
Erin Ruddy
Editor Erin Ruddy
Art Director Annette Carlucci
Graphic Designer Thuy Huynh-Guinane
Production Coordinator Ines Louis
Contributing Writers Andy Schwartze
National Sales Andrea Almeida Ron Guerra
Digital Media Director Steven Chester
Circulation Adrian Holland For sales information call (416) 512-8186
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Market Reflections and Predictions
Stable and healthy conditions likely to persist in 2025
Amid uncertainties due to political changes in Canada and the U.S., the apartment market has started 2025 in stable condition despite a mixed economic outlook. Throughout most of 2024, rents in Canada remained high, with some decrease in asking rents in Vancouver and Toronto towards the end of the year. According to CMHC, vacancy rates increased year-over-year, partly due to the influx of new supply. However, as Keith Reading, Director of Research at Morguard, noted, vacancy remains low, and options for rental families are still limited.
“New supply has pushed vacancy higher and units in newly built buildings are staying vacant longer due in part to affordability,” he says. “Renters are staying put as they can more easily absorb rent increases within provincial guidelines rather than increases that are above guideline.”
Reading adds that rents have increased more significantly for larger units as housing prices/interest rates are too high for renters to enter the homeownership market. Meanwhile, the number of condos designated for
rental usage has also increased, resulting in more competition for purposebuilt building owners and managers, particularly in markets like Vancouver and Toronto.
“On balance, the rental market remains stable and relatively healthy,” Reading concludes. “Investors continue to exhibit interest in acquiring rental properties that have performed strongly historically and continue to attract buyers given a largely positive medium-to-long term outlook.”
Source: Morguard
What’s ahead in 2025:
• Rents will continue to rise but at a moderate pace of 2-3 per cent, given slightly weaker demand and increased vacancy.
• Job growth will support rental demand and lower immigration numbers will result in modest downward demand pressure; however, rental demand will remain positive.
• Vacancy will rise but not significantly, as affordability constraints will force many families/individuals to stay in their existing units rather than purchase a home.
• New supply completions will slow, as some projects were delayed due to economic uncertainty and high construction costs.
• Rental condos will continue to have an impact on the rental market until the condo sale market recovers.
• Rents for lower-cost units will rise more sharply, as demand exceeds supply by a wide margin.
• Despite increased macro-economic uncertainty, rental demand will continue to exceed supply due largely to longer-term structural challenges including: a lack of affordable options for low-income families, the high cost of homeownership, and consumer goods and services.
• Immigration will decrease over the next few years, which will provide some relief in the country’s housing market.
• The rationale for investing in apartment buildings in Canada will remain compelling – therefore, investors will continue to look for opportunities to invest given the sector’s relatively stable and healthy long-term performance outlook.
Rent Growth and Affordability Challenges
Insights from CMHC’s National Rent Report
In 2024, rental market conditions became more consistent on a national level. However, most major cities experienced slower rent growth due to increasing vacancy rates and reduced turnover. The rental market in Canada was primarily influenced by significant growth in rental supply along with ongoing affordability challenges.
The CMHC’s National Rent Report, published in December, provides a detailed analysis of the previous year’s data as we approach 2025.
Vacancy rates
At the national level, the average vacancy rate for purpose-built rental apartments rose to 2.2 per cent in 2024 from 1.5 per cent in 2023, still under the 10-year average of 2.7 per cent. Rent growth slowed overall, with twobedroom units increasing by 5.4 per cent, down from a record 8.0 per cent in 2023. Turnover units saw a rent increase of 23.5 per cent, similar to 2023 rates, contributing over 40 per cent to the overall rent hike.
Despite the slowdown in rent growth, renter affordability remained strained. The increase in rental stock was driven by newly completed, higher-priced units, which were unaffordable for many renters and primarily served higher-income households.
Toronto had the lowest rent growth among major Canadian cities in 2024. For occupied units under rent control, landlords had limited ability to raise rents beyond the provincial guideline. Moreover, with a record increase in the supply of rental apartment condominiums, landlords in the purpose-built sector prioritized keeping existing tenants by taking a more cautious approach to rent increases.
In Vancouver and Montréal, because of tighter rental market conditions and a slight rise in turnover, rent growth didn’t slow as much as it did in Toronto.
Ottawa and Edmonton were the two major markets that bucked the trend, with overall average rent growth slightly accelerating. In 2023, rent increases in these areas lagged their respective provincial averages. However, in 2024, stronger rental demand allowed both areas to catch up, with relatively modest adjustments for existing tenants and more significant increases for new tenants.
Calgary’s rent growth slowed in 2024 but still significantly outpaced all other large urban centres due to unabated rental demand. Strong rent increases were supported by updated rental stock over the recent years, with a growing share of newer units becoming competitive with homeownership and secondary rental options. Landlords had more flexibility to raise rents for existing tenants, as they were not bound by rent increase guidelines.
Rental construction
Although demand remained high, the highest supply growth in over three decades outpaced it, resulting in higher vacancy rates and a cooling in rent growth in many urban centres towards the end of 2024.
Calgary and Edmonton saw the largest increases in rental completions, resulting in the highest vacancy rates among major markets. Many of these completions occurred in the second half of the year, with some projects still in the lease-up phase. The slower absorption of new units further contributed to the increase in vacancy rates.
Montréal’s rental apartment completions remained among the highest on record, surpassing those of any other Canadian city despite a decline from the record levels seen in 2023. With a large share of its population
Canada invests in Montreal mixed-use property
The federal government is allocating $50 million towards the construction of The MileBrook, a mixed-use development situated at the eastern end of the Island of Montréal. The MileBrook represents a $340 million investment and will ultimately offer over 800 rental units. Strategically located on the final mile of Sherbrooke Street, this multi-generational project addresses a significant demand for housing and local businesses in the area.
“Rental housing is a fundamental component of healthy and inclusive communities,” said Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec. “By investing in our communities, we are growing the economy of Canada, and of Quebec, and supporting the vitality of our cities, like Montréal. The MileBrook project is about more than housing—it’s a community where families can thrive.”
The MileBrook is also dedicated to sustainable development, with plans to protect on-site wetlands, create green spaces, green roofs, and a community garden. The units are designed to be 25 per cent more energy-efficient than required by code and are aiming for LEED Platinum certification.
In partnership with Fondation Louis-Charles Routhier, The MileBrook supports Mères avec pouvoir by reserving units for low- or modest-income single mothers. Over 85 per cent of the women supported by this organization achieve diplomas or jobs. To date, 250 women have benefited from these services.
“MileBrook is an important residential and commercial development project for our borough and for the Bout-de-l’Île,” said Caroline Bourgeois, Mayor, Rivière-des-Prairies–Pointe-auxTrembles Borough. “These new dwellings will offer an interesting mix of units as well as allow the arrival of much-needed new businesses in this area.”
living in rental apartments compared to other urban markets, Montréal continued to experience high rental demand.
In Ottawa, record rental apartment completions pushed the vacancy rate higher. Census data shows that a larger share of renters live in the secondary low-rise market (singledetached, semi-detached, and row homes) in Ottawa compared to other large urban centres. The decline in low-rise completions in 2024 drove increased demand for purpose-built rental apartments, which was outpaced by stronger increases in supply.
Affordability
Rental supply increased at a record pace in 2024 due to new completions, but these higher-priced units were primarily accessible to higher-income households. Although rent growth slowed in 2024, affordability did not improve. Rent increases slightly exceeded wage growth for the core renter group aged 25 to 44. Rent arrears rates showed a small decline but remained higher than those for mortgage
holders, indicating greater financial difficulty among renters.
Rent arrears rates were highest in Ontario, where affordability challenges persist. Rental operators in the region also reported that a backlog at the Landlord and Tenant Board has kept many units in arrears.
For more information on the rental housing sector in Canada, please visit www.cmhc-schl.gc.ca
ARE YOU CONTEMPLATING THE SALE
Consider the following:
• Who will represent your best interests?
• Who will give your property maximum exposure?
• Who will deliver the highest value for your Property/Portfolio?
This year highlighted that increasing supply alone is insufficient to address immediate affordability issues. CMHC’s findings underscore the need for policies that tackle both supply constraints and affordability challenges for low- to middleincome renters.
With over 35 years of experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property.
For more information on recent transactions and active listings, please reach out to a member of our team.
Tom Schuster Director Sales Representative (416) 847-3257 tom.schuster@cbre.com
Breathing new life into downtown Ottawa
CLV Group transforms underused offices into critical housing
by Erin Ruddy
Office-to-residential conversions have gained momentum in Canada since the COVID-19 pandemic, as the shift to hybrid working models continues to leave many commercial spaces underused. This ongoing trend has prompted some property owners and investors to explore alternative asset uses. While conversions aren’t feasible for every office building, cities like Toronto, Montreal, Calgary, and Ottawa report increasing office vacancy rates, leading more property owners to look for creative ways to breathe new life into their real estate investments.
One company embracing the conversion trend is CLV Group in Ottawa.
CEO Mike McGahan shared, “In the midst of the evolving housing crisis, innovative solutions are imperative now more than ever. We need to think outside the box, and we need to do it fast. The pandemic has impacted our downtown core, with a decline in foot traffic and an increase in office vacancies.
Converting these buildings into apartments aligns with our vision to breathe new life into
the heart of Ottawa. We’re heavily invested in contributing to a better future for our city and to doing it in a highly sustainable way.”
The Slayte at 473 Albert Street
The Slayte is one of Ottawa’s first office-toresidential conversions, and according to McGahan was a major success. Construction on the project began in 2021 when CLV Group took a vacant 1970s office building and transformed it into the modern residential commu-
nity its residents now enjoy today. By reusing the existing structure instead of starting from scratch, the project saved around 4,575 metric tons of carbon, representing a 55 percent reduction compared to demolishing and beginning anew.
“The Slayte is a great example of how creative design and sustainability can work hand in hand to meet both housing needs and environmental goals,” McGahan said.
Located 250 metres from Lyon Station, The
“By repurposing existing structures, we’re able to reduce the environmental impact and bring rental apartments to market faster, while also playing a small part in reactivating our downtown core.”
Slayte residents have convenient access to Ottawa’s LRT network. Though the station is already in service, an expansion is scheduled for completion this year, bringing several new stops, including the Ottawa International Airport, to commuters using the line. On-site amenities at The Slayte include a business centre, parcel storage, gym facility, outdoor seating areas, a large rooftop terrace with a hot tub, BBQs and fire pits, and a spacious rooftop lounge.
Ongoing: 360 Laurier Avenue West
CLV’s latest conversion project on Laurier Avenue West is now underway, with construction work having started last summer. Similar to The Slayte, a former vacant office building is being transformed into residential suites focusing on modern, high-quality design and optimizing existing features. The project is set to save over 550 truckloads of concrete and benefit from a significant reduction in greenhouse gas emissions compared to a similar-sized development built from the ground up.
Converting the building instead of tearing it down also allows CLV Group to recycle existing materials rather than send them to the landfill. In addition, it says any items that can be repurposed or re-used will be donated to various local charities and trade schools.
“This project reflects an ongoing shift towards sustainable urban development,” said Roch Chevrier, Regional VP of Construction at CLV Group Developments. “By repurposing existing structures, we’re able to reduce the environmental impact and bring rental apartments to market faster, while also playing a small part in reactivating our downtown core.”
The 11-storey building will ultimately offer 139 rental suites, including studios, 1-bedroom and 2-bedroom units, and an exciting lineup of amenity spaces. CLV Group is reserving the ground floor commercial space for rent by small or local businesses to cultivate a modern, active, mixeduse community.
“The benefits of an office conversion extend far beyond construction,” concluded Oz Drewniak, President of CLV Group Developments. “We’re doing this because Ottawa needs vibrant, pedestrian-friendly spaces that foster community engagement, support local businesses, and encourage people to use the City of Ottawa’s public transit system. It creates a massive domino effect.”
What’s driving the conversion trend?
In the last few years since the pandemic, governments at various levels have introduced incentives to promote these conversions. For instance, the federal government announced a full GST rebate for new residential rental prop-
erty construction and converting commercial buildings to residential in September 2023.
Meanwhile, municipal authorities are keen on promoting urban densification and addressing the issue of vacant office buildings. Housing experts note that converting these properties into residential units helps preserve asset value and taps into the growing residential real estate market.
While the idea remains popular, it isn’t always straightforward. Developers must navigate zoning laws, building codes, and the suitability of the existing structures for residential use. Factors influencing feasibility include building size, plumbing, layout, fire escapes, stairwell placement and more.
For more information on CLV Group’s office-to-residential conversions, please visit: www.clvdevelopments.com
Renderings courtesy of Ottawa-based architectural firm, Linebox Studio.
A TAILORED APPROACH TO MANAGEMENT
Choosing the right systems and strategies for your multi-residential building
TO ENERGY
By Erin Ruddy
Energy management plays a crucial role in addressing rising utility costs and achieving sustainability goals for Canada’s evolving apartment sector. Since the early 2000s, building retrofits aimed at improving energy efficiencies have been gaining traction in the multifamily space, with popular upgrades ranging from replacing old lighting systems to improving the building envelope.
By the late 2000s, Energy Management Systems (EMS) began to take off thanks to the promise of increased optimization through their ability to monitor and control energy consumption. Today, as the technology continues to develop, building owners and operators are increasingly investing in advanced energy management platforms that are proven to deliver better results and greater savings than before.
“Today’s systems not only reduce costs but also adhere to stringent energy efficiency regulations and cater to tenants’ growing preference for environmentally conscious properties,” says Claudel Therrien, president and CEO of Demtroys. “Furthermore, the integration of smart devices and datadriven insights enhances operations across properties, resulting in improved financial performance and reduced environmental impact.”
As shrewd as that sounds, not all energy systems and strategies are right for every multi-residential building. From pre-war rowhousing to post-90s high-rise apartments, building stock and their conditions can vary greatly, further impacted by maintenance practices, renovations, and the materials used in construction. Owners and property managers are well advised to do their research to determine the best approach and the right solutions for each asset they operate.
“The optimal energy management strategy depends on the building’s configuration,” says Therrien. “For buildings without in-unit temperature controls, advanced controls on main equipment, such as boilers and chillers, offer an effective solution. Conversely, for buildings with in-unit temperature controls, deploying a centrally managed system of smart thermostats, temperature sensors, and real-time energy management tools provides the greatest benefits.”
Therrien points to his own company’s energy management platform, touting its ability to enhance efficiency by dynamically adapting to environmental and occupancy conditions. Leading-edge features of the platform include load-shedding capabilities
and targeted heating or cooling adjustments that ultimately result in lower energy bills, reduced greenhouse gas (GHG) emissions, and extended equipment lifespans.
“The bottom line is that a tailored approach to energy management is essential, as no two buildings are the same,” he says. “My recommendation to owners is that they begin with a detailed energy assessment to identify inefficiencies and potential savings. For those not ready to undertake major renovations, such as replacing lighting, windows, or
building envelopes, implementing energy management systems that require minimal installation effort is a highly effective alternative.”
To support these types of upgrades, various government grants are available, and most solution providers can help their clients navigate the process of securing funding through to training staff on the newly installed equipment. Ongoing support and system optimization are also recommended, as this will help ensure
“The bottom line is that a tailored approach to energy management is essential, as no two buildings are the same.”
long-term efficiencies while maximizing the benefits of the investment.
Smart devices give data-driven results
One of the key benefits of investing in smart devices and integrated energy platforms, according to Therrien, is their ability to enhance tenant comfort by maintaining consistent and optimal indoor temperatures.
“By regulating temperatures more precisely than traditional mechanical thermostats, these devices often overshoot the setpoint and then drop below it in a continuous cycle,” he notes— adding that space heating accounts for over 60 per cent of total residential energy use in Canada. The next highest energy consumers are water heating and appliances, which together make up only about 17 per cent of energy use.
Meanwhile, from a property value perspective, the benefits of energy management platforms are undeniable given that buildings equipped with advanced management systems are more appealing to investors and buyers as they offer reduced operating costs and typically align with corporate sustainability goals.
“The impact on property value can be substantial, depending on the capitalization rate,” says Therrien. “For example, with a capitalization rate of 5 per cent, every $1 saved in energy costs can increase the property’s value by $20, reflecting a 20x multiplier effect.”
In terms of savings incurred through energy investments, it all depends on the building’s initial efficiency and the extent of the upgrades implemented.
“On average, we report heating cost reductions of 15 to 45 per cent with our systems, leading to substantial financial and environmental benefits over time,” he says. “The return on investment is generally achieved within a few years, further supported by grants available for the initial setup.”
Resources for interested owners
While there’s little doubt about the significant benefits energy upgrades bring, the upfront investment can be off-putting; that’s why it’s important to take advantage of any available grants or incentives to help ease some of the financial burden. Grants can cover a significant portion of the retrofit costs, and some programs offer low-interest loans with favourable repayment terms, making it easier for owners to manage the costs over time
The government of Canada’s “Retrofit Hub” hosts a collection of resources to help multi-residential building owners plan, finance, and imple-
How Energy Management Systems (EMS) work
A typical EMS is designed to help building owners monitor, control, and optimize energy use by collecting data and identifying areas where energy is being wasted. For example, it might detect that a piece of equipment is malfunctioning and using more energy than necessary, prompting a replacement or repair. EMS platforms can also help building owners set energy goals, track progress, and even predict peak usage times to better manage energy consumption.
Typical components of an EMS include:
• Sensors that continuously measure energy consumption and send the data to the EMS platform
• An EMS Interface where the user can monitor and manage energy usage, with real-time data and historical trends
• A Control System that sends commands from the EMS interface to the devices being managed, such as HVAC systems, lighting, and other electrical equipment
• The energy-consuming devices controlled by the EMS include heating and cooling systems, fans, and lights
ment their retrofit projects. Current opportunities listed include the Canada Infrastructure Bank’s Public and Commercial Building Retrofits Initiative; the Clean Technology Investment Tax Credit (ITC); Canada Mortgage and Housing Corporation’s Canada Greener Affordable Housing program, as well as sev-
eral provincial and municipal programs. In addition, Natural Resources Canada offers a wealth of information about best practices for maximizing energy efficiency in existing buildings, energy management training resources, fact sheets, data and benchmarking.
Demtroys specializes in advanced energy management systems that help optimize energy usage and reduce heating costs in Canadian apartment buildings. For more information, visit the Quebec-based company at www.demtroys.com
Renovating with Purpose
Maddox recognized with two 2024 MAC Awards
The 2024 FRPO MAC Award winners were announced December 5th at the annual Gala in Toronto. The event drew approximately 1,200 attendees spanning a wide range of apartment professionals—from hands-on owners/ managers to third-party management and REITs—to celebrate excellence in the residential rental housing industry.
Maddox, a subsidiary of Fitzrovia, received awards in two categories for its recently completed renovations at a high-rise apartment on Sherbourne Street in Toronto. Renovations were executed gradually and in phases, allowing tenants to continue living in their homes while the enhancements were conducted in spring 2024.
“Maddox by Fitzrovia has set out to reinvent the rental experience, designing best-in-class suites and amenities that consider the unique needs of our residents and the community in which it resides, while managing daily operations with honesty, transparency, and mutual respect,” said Cole Rodness, VP of Asset Management, Fitzrovia.
The amenities at Maddox Cabbagetown underwent renovations that
included upgrading existing lifestyle spaces and adding new features such as a commercialgrade fitness centre, creative maker’s room, children’s adventure zone, and pet spa. Meanwhile, the lobby was reimagined with new herringbone flooring, custom millwork, unique archways, additional designer seating, and several other improvements.
The Maddox brand was officially launched by Fitzrovia in February 2024, focusing on what it calls “modern-vintage” rental communities. The brand, according to Rodness, seeks to enhance existing rental apartments to improve the lives of in-place and future residents.
Canadian Apartment would like to congratulate all the 2024 MAC Awards winners, including:
Social Media Award of Excellence: Fitzrovia - Elm-Ledbury
Best Suite Renovation Over $40,000: QuadReal Property Group - 15 & 245 Lena Crescent, Cambridge
Best Suite Renovation Under $40,000: QuadReal Property Group - Widdicombe Place, Etobicoke
Best Advertising Campaign:
The Daniels Corporation & Choice Properties‘Change the way u. rent’
Best Lobby Renovation of the Year: Maddox by Fitzrovia - Maddox Sherbourne, Toronto
Best Property Management Website: DBS Developments - belasquare.ca
Best Curb Appeal: Dream - The Residence at Weston33 King Street, York
Best Amenities Renovation: Maddox by Fitzrovia - Maddox Sherbourne, Toronto
Best Amenities New Development: Fitzrovia - Elm-Ledbury, Toronto
Rental Development 200 Units or Less: BlueStone Properties - 101 Base Line Road West, London
Rental Development Over 200 Units: RioCan Living & Rhapsody Property Management Services - FourFifty The Well, Toronto Environmental Excellence: Skyline Group of Companies
Resident Manager of the Year: The Tricar Group - Vesna Mikic
Property Manager of the Year: The Daniels Corporation - Izabela Konopka
Leasing Professional of the Year: Sifton Properties - Wendy Roberts
Customer Service Award of Excellence: Fitzrovia
Community Service Award of Excellence — Supplier Members: Yardi Canada Ltd.
Community Service Award of Excellence — Rental Housing Provider: Skyline Group of Companies
The Impact Award: Dream Ltd., Kilmer Group & Tricon Residential - The Affordable Housing Program Initiative at Canary Landing
Company Culture Award of Excellence: Minto Apartments
Lifetime Achievement Award: Park Property Management - Margaret Herd
Industry Hot Topics
The Bakerfield II opens in Newmarket
The Rose Corporation announced it has officially opened The Bakerfield II, marking the end of the fourth phase of its 834-unit master-planned residential community in Newmarket, Ontario.
“The opening of The Bakerfield II is a milestone for The Rose
Alberta is in a “homebuilding boom”
The province of Alberta is setting new records for housing construction in Canada, according to year-end data from the Canada Mortgage and Housing Corporation (CMHC). Last year, Alberta led the country in housing starts per capita, seeing a historic jump in the number of new homes under construction.
“Alberta had a remarkable year for housing, which goes to show that our plan to build more homes faster is working,” sad Jason Nixon, Minister of Seniors, Community and Social Services. “I am looking forward to building on the successes of this past year as we look forward to 2025.”
According to a government statement, this homebuilding boom positively affects not only homebuyers, but renters as well. In 2024, Alberta experienced the largest year-over-year decline in asking rents while Calgary saw the biggest drop in rental prices, with apartment rents decreasing by 7.2 per cent. Outside of the larger cities, Alberta communities made up six out of the top ten most affordable small- and mid-size rental markets in Canada, including Lloydminster and Fort McMurray.
Alberta’s government says it will continue to support builders and encourage new housing development by cutting
Corporation,” said Daniel Berholz, President in December 2024. “Newmarket, like other communities and urban centres across Ontario, is facing a very real housing crisis, marked by a shortage of rental housing. Our ability to deliver new purpose-built rental projects that offer an elevated living experience will, we believe, fill a void in the local market.”
The 10-storey building on Deerfield Road offers 175 rental suites in a variety of layouts, from one bedrooms to three bedrooms plus den. Featuring the latest modern finishes and smart tech, residents will enjoy highspeed internet and Salto keyless suite entry among other perks. Amenities on the property include a golf simulator, yoga studio, coworking spaces, an expansive outdoor terrace with BBQs, dining space, a screening room, an indoor children’s play zone, a pet spa, car wash, automated parcel lockers, electric vehicle charging stations and more.
The Bakerfield II is The Rose Corporation’s third purpose-built rental building completed in the 6.8-acre, master-planned community since 2015; this includes a 15-storey condominium tower that also opened in 2024. The new residential community is centrally located near boutique shops, restaurants, galleries and local services along Newmarket’s Main Street. Convenient transportation options are easily accessible to residents including the VIVA Rapidway route, Newmarket GO station, Highways 404 and 400, along with bicycle paths and walking trails.
red tape, incentivizing housing construction and supporting innovative strategies that speed up the home building process.
Over the past year, some of the province’s work to initiate the homebuilding boom included launching the Stop Housing Delays online portal, making provincial land available for housing; exempting designated affordable housing from property taxes; supporting home ownership through alternative financing options; and taking action to ensure Alberta receives its fair share of federal funding for housing.
“2024 was a milestone year for residential construction, highlighted by record-breaking housing starts, including a significant increase in rental housing,” said Scott Fash chief executive officer, BILD Alberta Association. This achievement demonstrates industry’s responsiveness to growing demand and the Government of Alberta’s dedication to working collaboratively with industry and stakeholders to reduce barriers and advance housing development. With continued collaboration and thoughtful policies to cut red tape, our industry is well-positioned to meet the evolving needs of Albertans and deliver more attainable housing options.”
Bela Square brings mix of new rentals to East York
DBS Developments’ latest project, Bela Square, is closing in on completion with full occupancy at the purpose-built rental community anticipated for later this spring. The expansive property in East York, Toronto, includes a seven-storey mid-rise, a 35-storey high-rise, and a host of on-site amenities, and direct access to ample green space at Taylor Creek Park and the brand-new Bela Park.
“Bela Square is a purpose-built rental community designed to address the specific needs of today’s renters,” said Bryan Levy, CEO of DBS Developments. “Its diverse range of homes, from onebedroom to spacious four-bedroom townhomes, ensures options for individuals, couples, and families. The modern interiors feature premium finishes, including stainless steel appliances, luxury vinyl flooring, and in-suite laundry, catering to a high standard of living.”
According to Levy, the development integrates thoughtfully curated amenities such as a fitness centre, a children’s playroom, a pet washing station, and an abundance of green space. It also incorporates innovative technology, including an app designed to make life easier for residents, enabling them to make online payments and service requests, book amenities and stay informed of community events.
Governments invest $975 million in Toronto waterfront
Canada, Ontario, and the City of Toronto have pledged a combined $975 million to accelerate Waterfront Toronto’s revitalization. The plan aims to create over 14,000 homes, including affordable rentals at Quayside and Ookwemin Minising; it also expects to generate 100,000 skilled trades jobs and add $13.2 billion to the economy.
“As never before, cities are competing to attract investment, talent and tourism dollars. We’ve seen what can be accomplished when all orders of government work together to make the best of life and the best of Canada converge,” said Jack Winberg, board chair of Waterfront Toronto. “We look forward to building upon our 25 years of transformative revitalization work by delivering the next phase of the waterfront in partnership with governments.”
“These features all align with modern lifestyles, particularly in neighbourhood spaces for children to play and socialize,” he said. “The emphasis on community-centric design fosters a sense of belonging and enhances the appeal of Bela Square as a rental community that meets practical needs.”
DBS acquired the land in the 1970s, marking the developer’s entry into East York with the construction of 90 Eastdale Avenue—a highrise building that remains part of what DBS calls its “Legacy Communities”.
The two new buildings in the Bela Square development kicked off construction in March 2021—the first, a seven-storey mid-rise at 94 Eastdale featuring 80 residential suites has already opened to tenants. Meanwhile, the adjacent high-rise at 100 Eastdale achieved a major milestone in October 2024 with the “topping off” and crane removal. The 35-storey building, offering a mix of rental suite sizes, is on track to welcome its first residents in just a few months.
Site servicing work for the construction work will begin shortly, with first occupancy in the new homes anticipated for 2031. Waterfront Toronto will continue to lead this revitalization effort, with all governments collaborating to extend its legislated mandate.
As in previous phases of the revitalization, each order of government will contribute equally under the tri-government model; in this case, the amount is $325 million. The federal government is also investing an additional $200 million to match earlier contributions from the Province and the City to support the completion of the Broadview Eastern Flood Protection project.
“Unlocking the waterfront is important for our city. We’ll keep working to deliver much needed homes and infrastructure for Toronto,” said Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities. “The Ontario government is proud to support the next steps in the historic revitalization of Toronto’s waterfront to create a new, vibrant, mixed-use community with more housing, jobs, world-class attractions, parks and businesses.”
“Today is a great day for Torontonians. The Waterfront Toronto partnership will revitalize our city and build more than 14,000 homes,” added Toronto Mayor Olivia Chow. “Over 100,000 skilled trades jobs will be created. With investments from all three levels of government, this partnership will build a new neighbourhood and a vibrant waterfront for generations to come.” To follow along, visit: Homepage | Waterfront Toronto
Fitzrovia completes three-tower rental project
Fitzrovia has announced it is poised to open Sloane, a three-tower rental community at the north end of Toronto. Located steps from Yorkdale Shopping Centre, the property has convenient access to the TTC subway and highways, offering easy connection to downtown and the surrounding regions. Virtual suite tours and leasing are now underway, with occupancy beginning this spring.
“At Fitzrovia, we build homes to bring much-needed supply to the market and create spaces that meet the diverse needs of our population,” said Adrian Rocca, Founder and CEO of Fitzrovia. Sloane combines thoughtful
Retaliatory tariffs loom for buildings sector
Should the United States proceed with Trump’s plan to impose 25 per cent tariffs on Canada, the federal government intends to retaliate on U.S. imported products including building materials and furnishings, and equipment and products used in building operations, maintenance and housekeeping. The total package of proposed tariffs, which covers a much more expansive menu of imports, is valued at roughly CAD $30 billion worth of trade. If it’s necessary, a second stage of Canada’s response will introduce a
design, a prime location beside Toronto’s ultimate shopping destination, and exceptional amenities integrated with fashion, wellness, accessibility and lifestyle for families across generations. The need for rental housing is growing among young families and downsizers alike. Our 758 new rental suites address this demand by offering multi-bedroom suites and townhomes, complemented by amenities such as healthcare access, childcare, transit, and concierge services—all designed to foster social connection.”
According to Fitzrovia, Canada has an aging population, with seniors aged 65 and older expected to make up nearly 23 per cent of the population by 2030. The number of renter households aged 55-74 in mid- and high-rise units in Toronto has grown by 65 per cent over the past two decades.
As such, the company has included “thoughtfully designed suites” with accessible and barrier-free features for seniors, such as adjustable fixtures in bathrooms, wider doorways, and expansive layouts for family gatherings. Residents can also access complimentary virtual healthcare services through Cleveland Clinic Canada.
For younger families, Sloane features larger suites and a Bloomsbury Academy in-house daycare, offering Montessori-inspired education for children aged 18 months to 6 years. Bloomsbury Academy provides “bright, naturally lit classrooms,” a dedicated outdoor play area, a curriculum-focused on child development, and support for busy families.
Sloane also offers Shabbat-friendly suites, complete with customized locks and dual sinks, to reflect Jewish cultural and religious practices.
pricier list of big-ticket items, valued at CAD $125 billion worth of trade.
“This first set of countermeasures is about protecting — and supporting — Canada’s interests, workers, and industries,” said Finance Minister Dominic LeBlanc, before U.S. announced the one month paused. “In the face of the unjustified U.S. tariffs against Canadian goods, we are taking action to protect our economy, our workers and our businesses.”
Wood construction products figure prominently in the list, which includes posts and beams; lengths of lumber; plywood; fibre board; shingles and shakes; wood flooring; and engineered structural timber products. The latter covers off key components of mass timber construction, such as cross-laminated timber (CLT or X-lam), glue-laminated timber (glulam) and I-beams. There are also spinoff repercussions for concrete construction with a new tariff on imported wood forms for poured concrete.
Retaliatory tariffs on a broad range of hand tools, including saws, drills, wrenches and screwdrivers, will have implications for construction, building operations and maintenance. As well, tariffs will apply on work boots, safety belts and safety head gear purchased from the U.S.. On the building furnishings front, some of the U.S. imports to be targeted include: light fixtures; windows and doors; locks and padlocks; awnings and blinds; carpets; wall coverings; metal and wood office furniture; and, hat racks, hat pegs and brackets.
GWLRA plans False Creek mixed-use development
GWL Realty Advisors (GWLRA) is proposing a mixed-use development including secured market rental, below-market rental and furnished rental, as well as office space and retail amenities at 1220 Station Street in Vancouver.
The site is one block from the new St. Paul’s Hospital and is adjacent to the Main Street-Science World SkyTrain Station, which is the main public transit node for the city’s new healthcare district. To facilitate this proposal, GWLRA has submitted a rezoning application to the City of Vancouver.
“Our proposal supports the area’s future hospital community by providing much-needed rental accommodation for those who will work at or visit the hospital, as well as medical office space and retail services. The vision is to complement St. Paul’s and its diverse population and needs,” said Geoff Heu, vice president, development, GWLRA.
The proposed development includes two towers of up to 28 storeys above a commercial podium that can accommodate a grocery store, as well as office space for medical or lab uses. The project will include approximately 400 rental homes, ranging from studios to four-bedroom units. The 1220 Station Street site is bound by Terminal Avenue to the south and Pacific Central Station to the north.
“Located immediately adjacent to the Main Street-Science World SkyTrain Station, this project will offer a tremendous opportunity to support the emerging healthcare district with several complementary uses, and it will play an important role in the revitalization of the area. We look forward to working with the City of Vancouver to bring this forward,” said Heu.
To fulfil this vision and deliver on the city and the province’s goals for increased density around SkyTrain stations, GWLRA has requested rezoning of the property from its current office-use designation to mixed-use.
BC introduces new shortterm rental registry
The Province of British Columbia has announced the launch of a new short-term rental (STR) registry aimed at increasing housing availability by targeting illegal rental operators. The initiative is part of the larger goal by the government to provide more long-term housing options for residents in the province.
“We are taking action to help more people find a home in the communities they love by reining in speculators who are operating illegally,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “The launch of the registry is the next step to provide more long-term homes for people, giving hosts who are playing by the rules the ability to continue to legally operate and welcome guests while further cracking down on speculators who are breaking the rules.”
The primary objective of the STR registry is to regulate and monitor short-term rentals listed on platforms like Airbnb and Vrbo. This move is designed to crack down on illegal operators, ensuring that housing units return to the long-term rental market.
Registration, process and compliance
All hosts operating short-term rentals in B.C. will be required to complete an online registration process accessible on the provincial government’s website. Upon registration, hosts will receive a provincial registration number, which must be displayed on all online listings effective May 1, 2025. Non-compliant listings will be removed from platforms starting June 1, 2025.
The registry will implement a tiered fee structure of $100 per year for hosts renting out their principal residence; $450 per year for hosts renting out secondary properties and $600 per year for entire strata hotels.
Hosts who register by February 28, 2025, will receive a 50 per cent discount on fees, and those registering by March 31, 2025, will receive a 25 per cent discount. Revenue generated from these fees will support enforcement and compliance measures across various communities in B.C.
The provincial registry will function in addition to existing municipal regulations, including local business license requirements. This collaborative approach aims to provide a cohesive and comprehensive framework to address housing availability challenges. As Ken Sim, the mayor of Vancouver, stated, “Together, we’re finding the right balance – supporting our thriving tourism industry while also prioritizing housing for our residents.”
Preliminary data from the Ministry of Housing and Municipal Affairs indicates a 10 per cent decline in entire home listings on short-term rental platforms in regions with a principal-residence requirement since March 2024. This decline has opened up more housing options for long-term residents. The provincial registry is expected to enhance these efforts by providing additional tools to enforce regulations and prevent illegal listings.
Canada’s rental development efforts
How have new federal grants and measures impacted supply?
by Erin Ruddy
The disparity between housing demand versus available supply in combination with historically high immigration rates has created ongoing challenges for the Canadian housing market. As per Scotiabank’s 2024 housing poll, the number of Canadians between 18 and 34 who own a home has declined to 26 per cent today from 47 per cent in 2021.
While the Canada Mortgage and Housing Corporation (CMHC) has forecast 2.3 million new housing units by 2030, true affordability would require an additional 3.5 million homes. Currently, the most significant housing supply gaps are in Ontario and British Columbia, with Quebec and Alberta also expected to fall short.
“Complex problems are rarely solved by simple solutions,” says Kerri Byers, Associate Director, Valuation Advisory at Altus Group Altus Group and one of the analysts involved in the report. “Canada’s housing shortage is a multi-faceted issue that requires input and cooperation from all levels of governments, the public and private sectors. The cost and availability of capital, the sentiment of investors, and the cost of development also play a role in the country’s ability to meet its housing targets.”
Meanwhile, as homeownership continues to evade more and more Canadians, putting additional demand on the rental market, purposebuilt rental development has become a larger focus for developers and the government. Some of the recent policies aimed at increasing the rental supply include tax incentives, construction loan programs, and grants. In April 2024 the federal government announced a $15 billion top-up to the Apartment Construction Loan Program (ACLP) along with reforms and the launch of Canada Builds, a ‘Team Canada’ approach to building affordable homes on underutilized lands across the country.
In July, CMHC also launched the Frequent Builder framework, which promised to accelerate the construction of affordable and new
rental homes by expediting the application process for established housing providers who rely on the Affordable Housing Fund (AHF) or the ACLP for funding.
“These rental-focused initiatives appear to be generating momentum across the market, as purpose-built rental construction starts represented 47 per cent of all housing starts in Canada’s six largest Census Metropolitan Areas (CMAs) in 2024,” Byers notes.
In December, Ontario Liberal leader Bonnie Crombie revealed her housing plan, which includes a “phased-in” rent control measure, in addition to the promise of resources to clear the backlog of disputes waiting for review by the Landlord Tenant Board. Crombie also intends to establish an emergency-support fund for tenants to mitigate evictions by providing short-term, interest-free loans for renters facing financial emergencies.
In November, the federal government announced upcoming enhancements to the ACLP, which provides low-cost loans to support the construction of new rental housing, including affordable, senior, and student housing. The program prioritizes projects that meet specific criteria related to affordability, sustainability, and social outcomes, and offers loans ranging from a minimum of $1,000,000 up to 100 per cent of the cost of the residential component of a project. The CMHC’s Multi-Unit Mortgage Loan Insurance program (MLI Select) works in coordination with ACLP to provide mortgage loan insurance for multiunit rental housing projects with reduced premiums and longer amortization periods based on commitments to affordability, accessibility, and sustainability.
“While ACLP provides much-needed funding that makes rental development possible, MLI Select offers mortgage loan insurance with better financing terms for the project,” Buyers says. “In simple terms, ACLP helps projects get the green light, and MLI Select helps ensure projects remain financially viable over time through insurance incentives. By leveraging both programs, developers can benefit from comprehensive support throughout the lifecycle of a rental housing project, from construction to long-term financing.”
As of September 2024, CMHC has committed $20.65 billion in loans through ACLP to support the creation of more than 53,000 purpose-built rental homes. The recent enhancements to this program are as follows:
New scoring metric: Similar to MLI Select, ACLP is now on a points system based on affordability, energy efficiency, accessibility and social outcome scoring.
Program extension: The ACLP has been extended from 2027-28 to 2031-32
Expanded eligibility: The program now includes on- and off-campus student housing and independent seniors housing
Removed minimum requirements: Minimum requirements related to accessibility and energy efficiency have been removed. Instead, applicants are encouraged to make stronger commitments to desired rental supply and social outcomes.
Enhanced appraisal requirements: Previously, applications for multi-units over 25 units did not require an appraisal. Now, appraisal reports must be produced in accordance with the applicable industry standards, contain three market valuation methods, and have an effective valuation date within 12 months from the application submission.
Essentially, by combining the low-cost CMHC loans with the insurance incentives from MLI Select, Altus Group purports that developers can significantly reduce their financing costs and improve the overall financial feasibility of their projects.
“These measures collectively help make rental housing projects more viable and attractive, ultimately contributing to an increased supply of affordable and sustainable rental housing in Canada,” says Byers. “However, they do not address the other pressures experienced by developers in the past year, including volatility in construction costs, the high cost of land for development sites, municipal fees and development charges, and increased operating costs. All of these factors combined produce a project pro forma that can ultimately make or break its feasibility. The CMHC’s financing programs, while impactful, are a single factor in the development pro forma.”
The New World of Insurance
Navigating premiums in 2025
by Andy Schwartze
2025 has only just begun and we’re already witnessing remarkable weather events south of the border and around the world. Among them, Southern California has faced devastating wildfires, resulting in over 28 fatalities, the destruction of more than 16,000 buildings and multiple evacuation orders affecting over 200,000 residents.
The two significant fires in the Palisades and Eaton are among the most destructive in California’s history, collectively burning nearly 38,000 acres. Severe drought combined with strong Santa Ana winds exacerbated the fires, leading to “critical fire conditions” what swept across the region. This area is populated with higher-end homes and the resulting damage is going to take years to repair — which inevitably means huge amounts of money from insurance companies. Adjusters from all over will converge on the
area; clean-up and rebuild resources will be stretched thin, which will lead to lengthy delays and higher than normal costs as demand overwhelms supply.
As an insurance broker to private corporations for a very long time, I started my career when the property/casualty industry was well populated by insurers of different sizes and ownerships. Competition was lively, deal-making with real decision-makers was the norm, and it was not uncommon for insurance accounts to be moved as
changing appetites pushed underwriters in new directions that they viewed as potentially profitable. However, as the years went by, consolidation increased, and decision-making became more centralized. In 2010, we began to see the emerging realities of weather-related events. Their frequency and severity began to grow— and then, along came COVID.
With these developments, the property/casualty insurance world began to retreat from its earlier active and robust willingness to compete. Systems were adjusted to the “at home” work environment and in-person dealings devolved into a new world of emailing. The result is that in today’s insurance environment, doing business is far more structured than it used to be in the free-wheeling, deal-making days of past. For the insurance buyer, this means the industry that supplies your insurance has become more disciplined, protective, and demanding in terms of increased loss prevention requirements. As such, apartment owners are advised to maintain safe, sound properties that check all the right boxes if they want to maintain coverage at the most reasonable rates.
Having said that, 2025 still looks to be a year of reasonable price stability. Insurance values, because so many of them are based on replacement cost (at today’s labour and materials costs), will continue to drive premium totals higher. It’s safe to assume that property insurance renewals will likely go up by single digit percentages because of those value shifts. Water claims dominate the scenery and will continue to affect insurance rating at the reinsurance, and thus retail, level.
The negotiating power of insurance brokers has, over the past decade, been somewhat eroded by the new underwriting
discipline that has risen within the insurance sector. We have always been tasked with giving coverage advice and direction, which is something we still enjoy doing. But the clout that brokers have as to pricing has been weakened over time much like what has happened in the banking industry. In some ways, this is not so bad in that the balance sheets of underwriters remain strong, and the unpleasant prospect of insurer bankruptcies is very low. As always, what we lose on one side we gain on the other.
Best wishes to all of CAM’s readers for a healthy and successful year.
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MADE (BETTER) IN CANADA
Products and materials serving the building sector
Canada has been making strides in developing innovative building materials, products and processes that expedite construction and improve energy efficiency. Recently, there’s been a strong focus on green building practices, including the use of sustainable materials, energy-efficient designs, and renewable energy sources. Here are a few examples of companies at the forefront of building solutions:
1.
MODULAR FABRICATION
Modular fabrication involves designing, fabricating, and assembling building components—such as structural parts, mechanical systems, plumbing, electrical systems, and finishes—in a controlled factory environment. Québec City’s developer Logis-Bec recently built a 45-unit apartment building with prefabricated modules. This method improved material efficiency, reduced waste, and sped up construction.
2.
SMART CONCRETE
With the support of Canada’s Strategic Innovation Fund, Giatec Scientific Inc. is developing a smart concrete demonstration plant, which will operate using the world’s first AI-enabled digital platform for the concrete industry. The groundbreaking platform will allow concrete producers, contractors and business owners to increase the profitability of their projects by improving efficiencies, while reducing the environmental impact of the concrete industry. The Ottawa-based plant is estimated to create 160 jobs for Canadians.
3.
VINYL, METAL AND SPECIALTY SIDING
Canadian company Gentek has been manufacturing exterior building products for over 50 years, and is well-known for its vinyl, aluminum, and steel siding, soffit systems, and trim accessories. The company operates five manufacturing facilities and 22 distribution centres across Canada, contributing to local employment and community development through its focus on quality and innovation.
Embed a tenant insurance quote into your leasing process
