CAM March/April 2025 by MediaEdge

THE MODULAR SHIFT

RETHINKING CONSTRUCTION PRACTICES

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INVESTING WISELY

Canada’s rental housing market has faced significant challenges in recent years, from rising demand and limited supply to ineffective policies and labour shortages. Furthermore, many rental properties in Canada are aging, and outdated infrastructure contributes to inefficiencies and higher costs for both landlords and tenants.

Investing in energy-efficient upgrades and new technology is essential for tackling these challenges. First, energy-efficient upgrades—such as better insulation, energy-saving appliances, and efficient heating systems—can significantly reduce utility costs. These savings benefit tenants directly, making rental housing more affordable. For landlords, energy efficiency enhances property value and attractiveness in a competitive market.

New technologies can also revolutionize property management and tenant experiences. Smart home devices, such as automated lighting, energy monitoring systems, and digital thermostats, give tenants greater control over their energy consumption while promoting sustainability. Additionally, digital platforms for rent collection, maintenance requests, and communication can streamline operations for landlords, reducing costs and improving tenant satisfaction.

Another approach that’s gaining popularity on the affordable building front is modular construction. Recently, leaders in this area have shown how prefabricated building techniques can shave months off construction timelines, bringing cost savings and environmental benefits along with it. Read our cover story on page 16 for more.

The bottom line is that by making strategic investments in upgrades, rental housing can remain both affordable and sustainable for future generations. Proactively addressing inefficiencies will allow Canada’s rental housing market to exemplify resilience, affordability, and environmental responsibility.

Happy Spring!

Sincerely, Erin

Ruddy

Editor Erin Ruddy

Art Director Annette Carlucci

Graphic Designer Thuy Huynh-Guinane

Production Coordinator Ines Louis

Contributing Writers Drew Fenton

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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Erin Ruddy

SHIFTING DYNAMICS

Market trends indicate some volatility on the horizon

Economic uncertainty has eroded confidence among renter households, businesses, owners and investors, creating some volatility for Canada’s rental market. Though rents have remained high, historically speaking, rent growth has slowed in both Vancouver and Toronto while levelling out in most other jurisdictions.

Vacancy rates have increased since last year, driven to some extent but the influx of new supply; however, as Keith Reading, Director of Research at Morguard points out, vacancy is still low and options for rental families are very limited.

“New supply has pushed vacancy higher,” he said. “Units in newly built buildings are staying vacant longer due in part to affordability.”

Meanwhile, renters are staying put longer to “more easily

absorb rent increases within provincial guidelines” rather than moving out and risking higher rent increases.

Investor interest

Investors continue to exhibit interest in acquiring rental properties that have performed strongly historically, but the market has slowed due to economic uncertainty driven largely by the threat of tariffs. Pricing has been relatively stable, and Reading expects this will continue through 2025.

Source: Morguard

A Busy Q1 For CAPREIT

Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) has kicked off 2025 with a bang. In February, the company announced it had completed two non-core dispositions for $96.8 million, in addition to closing on a 717-suite sale in Montréal for $103.8 million; it also acquired two recently constructed rental apartment properties in Western Canada for an aggregate purchase price of $97.6 million.

“We’re kicking off the new year on an exciting note with these strategic transactions, through which we’re continuing to upgrade the quality and enhance the diversification of our core platform in Canada,” said Mark Kenney, President and Chief Executive Officer. “These recently constructed, mid-market rental properties fit perfectly into our target portfolio positioning, and we’re acquiring them at an age where they provide an ideal balance of embedded value and growth potential. We’re equally pleased to be able to keep playing our part in supporting the Canadian housing eco-system, through the investment of our capital into newer purpose-built rental properties, and we’re looking forward to doing more of this in 2025.”

In January, CAPREIT sold a non-core portfolio containing 242 residential suites in Brampton, Ontario, for $73.8 million and a 138-suite portfolio located in Charlottetown, Price Edward Island, for $23.0 million. Meanwhile, it closed on the acquisition of a purposebuilt 41-suite rental property in Vancouver. In February, it purchased an “on-strategy” 27-storey, 240-suite rental property located in the Wîhkwêntôwin (formerly Oliver) District of Edmonton.

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2025 Housing Market Projections

Rent growth expected to ease as demand for rental housing declines

Predicting Canada’s economic future remains challenging due to ongoing tariff disputes, reduced immigration targets, and changes in federal leadership, all of which contribute to housing market uncertainty. According to the Canada Mortgage and Housing Corporation’s (CMHC) latest Housing Market Outlook, these factors will inevitably influence rental housing demand. CMHC forecasts that in 2025, rent growth across most Canadian markets will slow as vacancy rates increase, ultimately leading to gradual improvements in rental affordability.

As per the report, “We expect lower immigration and an increase in firsttime homebuyers to continue to reduce rental demand throughout 2025 – 2027. Supply will continue to expand as new rental units are completed, leading to higher vacancies and slower rent increases.”

Apartment starts

Since 2024, apartment starts in Canada have reached record levels, driven by government initiatives, a rapidly growing renter population, and strong rent growth during the planning phase. While CMHC projects this momentum to persist through 2025 and 2026, fueled by numerous upcoming multi-residential projects, analysts warn that construction activity will likely ease by 2027 as the current pipeline of purpose-built rental projects comes to a close.

Regional highlights

Vacancy rates in B.C.’s major centres rose in 2024 and are expected to remain high in the near term. That said, a significant number of rental units under construction will enter the market in the next few years, but many will be too expensive for the average tenant, potentially slowing their uptake. Lower renter population growth, driven by fewer international migrants, will reduce demand across the province, although recent immigrants are likely to continue favouring rentals over homeownership. This may pressure asking rents downward, improving affordability and increasing turnover as the gap between rents of occupied and vacant units narrows.

In Metro Vancouver, housing starts are predicted to rebound in 2025 after a sharp decline in 2024. However, limited land transactions and rising costs will hinder growth beyond 2026. Rental construction will remain a priority due to policies and developer interest, though leasing higherpriced units will become increasingly challenging, especially given rising land prices. CMHC analysts suspect this could affect development feasibility in the city of Vancouver.

In Alberta, rent growth, along with new policies and programs, are expected to support new construction; however, economic uncertainty may cause some developers to proceed with caution. Currently, Edmonton remains one of the most affordable of Canada’s largest urban centres, and CMHC expects it will continue to attract

Hastening Construction in Toronto

As announced in March, the federal government is providing $2.55 billion in low-cost construction loans to help build more than 4,800 rental units in the GTA, including 1,000 affordable rental units. The City of Toronto will provide approximately $234.83 million in estimated value of City benefits for these affordable and purpose-built rental homes.

The partnership is expected to help “drive down the cost of building and hasten housing construction” by providing low-cost federal financing, conditional on the City of Toronto providing relief on development charges, fees and property taxes. The funds are in addition to the recently announced $975 million investment to accelerate the delivery of Waterfront Toronto’s revitalization plan, creating over 14,000 new homes along Toronto’s Waterfront at Quayside and Ookwemin Minising.

“Every Torontonian deserves an affordable place to call home,” said Toronto Mayor Olivia Chow. “Today’s landmark housing agreement will reduce barriers so more than 4,800 homes will be built faster. By working together with our federal partners, we are securing affordable homes in Toronto for generations to come.”

The Government of Canada and the City of Toronto also announced their continued commitment to supporting people experiencing unsheltered homelessness, particularly in encampments. Under the Unsheltered Homelessness and Encampments Initiative (UHEI), the federal government is providing $25.8 million over two years and the City of Toronto will contribute $400 million.

Under Reaching Home’s Designated Communities stream, the federal government is also allocating an additional $62.7 million to the City of Toronto through Budget 2024 funding, which is helping service providers in Toronto prevent and reduce homelessness.

As of December 31, 2024, the federal government has committed $21.76 billion in low-cost loans through the Apartment Construction Loan Program (ACLP) to support the creation of more than 56,000 rental units across Canada.

“Rental apartment construction in Canada reached record levels in 2024 due to government support, a rapidly growing renter population and strong rent growth at the time of planning. We expect this momentum to continue through 2025 – 2026, supported by numerous projects set to start. However, softening rental market conditions may lead to fewer rental projects starting in 2027.”

international and internal migrants, albeit at lower numbers than in 2024.

Calgary’s strong population growth in recent years is expected to slow as federal policies impact international migration. In turn, vacancy rates will rise in the city as new purpose-built housing supply outpaces the slowing demand. This shift is likely to ease rent growth pressures as landlords compete to fill new buildings. Elevated vacancy rates and slower rent growth may lead to fewer condominiums in Calgary being used as rentals.

In Ontario, primary market rent growth slowed in 2024 after two years of acceleration, owing to increased vacancy rates. CMHC expects more of the same in 2025 due to increased multi-unit housing starts and the planned reduction in the non-permanent resident population, resulting in fewer international students.

The purpose-built rental apartment vacancy rate in Toronto is expected to rise due to higher levels of condominium and purpose-built rental completions, along with weaker demand and a higher unemployment rate. Following recordlow rental turnover in 2024, some GTA renters will likely transition to homeownership, further increasing vacancy rates in Canada’s largest city. CMHC says it expects below-average rent growth for two-bedroom rentals in 2025 and 2026, allowing incomes to catch up and more renters to enter the market by 2027.

In some Eastern rental markets, increased supply will cause the vacancy rate to grow slightly this year. In Ottawa, the rental segment will continue to account for a growing share of new construction, and the vacancy rate should rise slightly. In Montréal, rental units will remain the most commonly built housing type. More stable construction costs, better financing conditions and government incentive programs are expected to continue driving new rental starts in 2025.

Retrofit funding for multi-res buildings

Canada Greener Affordable Housing provides access to low-interest repayable and forgivable loans for deep energy retrofits of multi-unit residential buildings. This program will address climate capability and resiliency to multi-unit (5+) residential buildings, by providing forgivable loans and low-interest loans to help finance building retrofit measures and activities needed to meet climate objectives, leading to deep reductions in energy consumption and GHG emissions.

Deep energy retrofits include projects that lead to:

• 70% reduction in energy consumption relative to pre-retrofit performance, and

• 80% reduction in greenhouse gas (GHG) emissions relative to pre-retrofit performance.

Buildings must have a minimum of five units and be at least 20 years old. Applicants must meet a municipal, provincial, territorial, Indigenous government or CMHC program affordability criteria. Find out more at: www.cmhc-schl.gc.ca/professionals.

Condominium apartments

CMHC expects housing starts across Canada to slow down over the forecast period, primarily due to fewer condominium apartments being built in the coming months and years. With low investor interest and more young families looking for family-friendly homes, developers will find it harder to sell enough units to fund new projects. The increase in unsold units will likely reduce new project launches, leading to a decline in new condominium apartment construction.

For more on Canada’s housing market, visit www.cmhc-schl.gc.ca

That said, regional activity will vary according to the province. In Ontario, pre-construction condominium apartments, often bought by investors, will see lower demand due to weaker resale and rental markets, leading to new construction slowing down promptly as of 2025. In B.C., fewer investors and stronger resale markets will lessen this slowdown, while the impacts will be minimal in Alberta where more buyers are actual residents as opposed to investors.

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Embracing the Sustainability Movement

How to turn an aging asset into a healthy, attractive living space

by Erin Ruddy

Implementing sustainable practices in rental property management is a strategic move with financial, regulatory, and reputational benefits. Eco-friendly apartments today provide healthier living spaces for tenants and help property managers thrive in an environmentally conscious market. With Canadian renters valuing eco-friendly living, properties with a green reputation are in high demand and command higher rents. Modern sustainability features also reduce maintenance costs and boost return on investment.

Reaping the rewards

What landlords can expect from embracing sustainable practices:

Financial benefits - Sustainable properties can save money by lowering energy and water consumption, benefiting both landlords and tenants. With an increasing number of renters becoming environmentally conscious, sustainable properties can attract more tenants who are willing to pay a premium for ecofriendly housing. Additionally, sustainability

addresses financial barriers that may prevent or defer property maintenance. Since sustainable properties come with more modern features and amenities, the property becomes easier to maintain, resulting in lower costs and a greater return on investment for the landlord.

2

Regulatory benefits - Operating rental properties in Canada requires adherence to s tringent governmental policies, which are increasingly focused on sustainability standards. Complying with these

regulations not only protects multi-unit property owners and managers from penalties but also ensures their properties remain viable as environmental laws continue to evolve.

3Reputational benefits - Buildings deemed energy efficient or eco-friendly tend to attract quality tenants and boost the reputation of the property owner. Modernized, sustainable apartments provide tenants with convenience and an improved quality of life, leading to higher tenant satis-

faction and retention rates. By offering rentals that align with tenants’ values, property managers can strengthen their position in a competitive rental market.

Upgrading your aging property

Five easy ways to make your rental units more sustainable:

1Use low-VOC paint - Opt for low-VOC (Volatile Organic Compounds) paint to improve indoor air quality and reduce environmental impact. Low-VOC paints emit fewer harmful compounds and require fewer coats, saving time and resources.

2Install energy-efficient appliancesReplace outdated appliances with energy-efficient models, such as those with the Energy Star label. Consider solar-powered appliances to further reduce electricity costs and environmental impact.

3Implement water conservation measures - Install low-flow fixtures and water-saving technologies like greywater and rainwater harvesting systems. These measures can significantly reduce water usage and demonstrate a commitment to sustainability.

4Invest in green insulation - Use ecofriendly insulation materials like shredded denim, hemp, or sheep’s wool to reduce energy costs and support recycling. Proper insulation helps maintain comfortable indoor temperatures and reduces the need for heating and cooling.

5Educate tenants on recycling - Encourage tenants to recycle by providing information on local recycling programs and designated bins. Educating tenants about the importance of recycling fosters sustainable behaviour and reduces waste on the property.

Promoting your message

By sharing environmental and eco-friendly practices, your building will:

1Attract better tenants - Many renters prioritize sustainability and prefer living in environmentally friendly properties. By showcasing green practices, landlords can attract tenants who value eco-friendly living, potentially increasing occupancy rates and tenant satisfaction.

VOCs are chemicals that can evaporate into the air, potentially contributing to air pollution and posing health risks, making low-VOC paint the better option for indoors.

Enhance property value - Sustainable practices can improve the overall value of a property. Energy-efficient appliances, water conservation measures, and green insulation can reduce operating costs and make the property more appealing to prospective buyers or renters, leading to higher property values.

Build a positive reputation - Sharing eco-friendly practices helps landlords build a positive reputation in the community. It demonstrates a commitment to environmental stewardship and can differentiate the property from competitors. This positive image can lead to increased trust and loyalty from tenants and the broader community.

Funding for larger energy projects

Funding and incentives are available to support deep energy retrofit projects that help improve energy efficiency and decarbonization in multi-unit residential buildings. These include:

Building Retrofits Initiative (BRI) – Offered through the Canada Infrastructure

Bank, this nation-wide initiative provides attractive financing to reduce investment barriers and decarbonize buildings with the goal of modernizing and improving energy efficiency.

Rental Apartment Retrofit Accelerator Program (RARA) – For apartment owners in B.C., interested parties can access a suite of energy efficiency and decarbonization retrofit planning support services, with guidance available from professional engineers through to support accessing applicable financial incentives.

The High-Rise Retrofit Improvement Support Program (Hi-RIS) – Available in Toronto, this program makes low-cost financing available for owners of multi-residential buildings built before 1990 to make improvements that reduce energy and water consumption.

Alberta Clean Energy Improvement Program – Offers landlords a way to finance their upgrades with competitive rates with long repayment terms. The financing can cover up to 100% of project costs and some participating municipalities offer rebates to help reduce the total investment.

MAKING THE MOVE TO MODULAR

Faster delivery, reduced emissions touted as key benefits

MOVE

By Erin Ruddy

Given the persistent challenges limiting housing development in Canada, technology and innovation are increasingly viewed as critical elements of potential solutions. One promising approach is factory-built housing, which has advanced significantly in recent years, transcending its origins in backyard sheds and single-family homes to include larger multi-unit structures.

The recent opening of a three-storey modular housing development at 1120 Ossington Avenue in Toronto, demonstrated just how quickly a 26-unit residential building could be erected without compromising on quality or aesthetics. Led by the nonprofit organization St. Clare’s, and supported by the City of Toronto and CMHC’s Rapid Housing Initiative, the affordable housing project was constructed using sustainable mass timber technology and erected in under three weeks.

“Twenty-six lives are being transformed as they move into their new homes on Ossington Avenue,” said Mayor Olivia Chow at the project’s grand opening in February. “A bed, a safe place to eat, to heal and find community. Astoundingly, through the partnership with St Clare’s and the federal government, this housing was built in just 17 days.”

Designed by Smart Density and McCallum Sather and developed in partnership with Toronto-based Assembly Corp, 1120 Ossington showcases innovative architectural features while exemplifying the potential of using prefabricated components and sustainable materials in multi-unit construction.

“Canada’s housing crisis demands urgent solutions,” asserts Geoff Cape, CEO at Assem-

bly Corp. “3.5 million new homes are needed by 2030, yet traditional construction methods struggle with stagnant productivity, labour shortages, and supply constraints. At Assembly, we address this challenge by delivering sustainable, factory-built panelized mass and dimensional timber housing that enables gentle densification in already desirable urban neighbourhoods. With 85 per cent of Canadians living in cities, our approach ensures that new housing is not only affordable but also livable and environmentally responsible.”

The company uses domestically cultivated, harvested, and processed wood as the primary material for construction. This strategy is particularly beneficial in light of the ongoing U.S. tariff threats, as it enhances Canada’s ability to build sustainable housing using its own resources. The components are broken into five kits: decks and beams, load-bearing walls, facades, interior finishings, and technical installations. Semi-automated manufacturing techniques are employed to convert the wood into standardized products.

“We take a holistic approach to sustainability, tackling both urban density and climate change by reducing construction’s carbon footprint,” Cape explains. “Our Canadian supply chain

is a key part of this strategy, and with our new manufacturing facility opening at Downsview in Toronto in 2026, we will be able to produce 960 units annually, with the potential to scale further.”

Cape credits the recent partnership with the Swedish company Lindbäcks for accelerating the expansion, emphasizing that it enabled Assembly to acquire manufacturing equipment and benefit from critical knowledge-sharing. With nations such as Sweden, China, and Japan at the forefront of the modular timber industry, accessing their expertise has proven invaluable. However, there is still progress to be made.

“Advancing industrialized construction requires product development, policy support, and cultural acceptance—and Canada is on the right track,” he says, noting that Ontario’s building code was updated in January to permit modular wood construction up to 18 storeys; a decade ago, the limit was four storeys. Nonetheless, he states that Assembly Corp will remain concentrated on mid-rise infill projects for the time being, as this strategy aligns with its objective of reducing urban sprawl.

“Our factory-designed, pre-clad panels and presite plans enable us to build on previously infeasible sites,” Cape points out, adding that, “we prioritize Canadian-sourced materials to reduce our reliance on foreign markets—and with ongoing U.S. trade uncertainties, our new factory will create local jobs.”

Building higher and faster Assembly Corp isn’t the only prefabricated housing manufacturer pushing the industry forward. As the technology advances, and governments continue to invest in innovative building solutions, modular construction is on the rise. Montreal student housing provider UTILE recently completed a project in Rimouski, Quebec, featuring 155 rental units. A finalist in CMHC’s Housing Supply Challenge, the goal of the project was to “push the boundaries of what modular housing could achieve” and showcase the findings in an upcoming white paper, scheduled for release this fall.

While some of the benefits of modular construction are well documented—such as the climatecontrolled environment allowing for year-round construction and the ability to simultaneously build various components, speeding up timelines—other key benefits come from using computer-aided design to ensure efficient use of building materials

Typical assembly process

“Manufactured housing offers the advantage of quick and easy installation on urban PROPERTIES with limited spaces.”

and bulk purchasing capabilities. At the back end, manufactured housing offers the advantage of quick and easy installation on urban properties with limited space, environmentally sensitive sites, or remote rural regions. But that’s not to say there aren’t a few cons. According to CMHC, some of the current challenges include:

Design limitations - The need to transport modules to the construction site often restricts their size and shape, which can limit architectural creativity and flexibility.

Transportation and logistics - Moving large modules requires careful planning, special permits, and sometimes even custom routes, which can increase costs and complexity.

Lack of industry standards - Modular construction is still evolving, and the absence of standardized practices can lead to inconsistencies and inefficiencies.

Financing challenges - Securing funding for modular projects can be difficult due to unfamiliarity with the method and perceived risks.

Perception issues - Some stakeholders may view modular construction as less durable or high-quality compared to traditional methods, which can hinder its adoption.

Despite these hurdles, the momentum is growing, and the push for systemic changes to fully realize its potential is underway. Currently, the federal government is actively supporting modular construction, offering funding and loans to encourage its adoption. For instance, $500 million in loans have been earmarked for apartment builders using modular construction techniques, given its growing reputation as a faster, more cost-effective, and environmentally friendly way to build homes.

A modular building is a prefabricated structure composed of repeated sections known as modules. Permanent Modular Construction (PMC) buildings are produced in a controlled environment and can be constructed from wood, steel, or concrete. Modular components are usually assembled indoors on assembly lines. The construction of these modules typically takes between ten days and three months. Modules can be integrated into site-built projects or stand alone, and they can be delivered with mechanical, electrical, and plumbing (MEP) systems, fixtures, and interior finishes.

Installation of the prefabricated sections is generally carried out using a crane. The modules can be arranged side-by-side, end-to-end, or stacked, allowing for various configurations and styles. Once placed, the modules are joined together using inter-module connections, which link the individual modules to form the complete building structure.

Protecting Your Assets in 2025

How to maneuver in a tough market

by Drew Fenton

While real estate insurance rates are stabilizing after several years of volatility, catastrophic weather events and financial changes in the marketplace are bringing other risks to the forefront. Real estate owners and operators will need to protect their assets and stay on top of changing regulations if they want to secure the best rates.

Profitability: With operating costs rising, profitability challenges are top of mind. The commercial vacancy rate remained around 18 per cent at the end of 2024. And with $67 billion in commercial real estate mortgages set to mature, there’s concern around mortgage renewals. The cost of insuring commercial real estate in high-hazard occupancies like wood working, rubber manufacturing and plastics can begin to rise. While capacity in the market is growing, real estate owners and operators will have to adopt strong risk management strategies to protect their assets.

Vitality: Labour shortages continue to plague the hospitality and retail industries as they struggle to find qualified workers. Building

owners are finding that a comfortable working space is one way to lure workers back to the office, but employees are also prioritizing job opportunities that come with robust benefits offerings. Real estate owners and operators will need to explore personalized benefits options to engage and attract the right kind of employees for their business.

Resiliency: Real estate owners and operators will need to prepare their assets for risks that are out of their control, such as catastrophic weather events and safety issues. The best way to protect ag ainst such suits is by ensuring they are

up to date on regulatory requirements. Other important risks include cyber security and disaster planning, both of which must be incorporated into overall risk management procedures.

5 Best Practices in Navigating Real Estate Challenges in 2025

Although the market in 2025 may be tough, it won’t be impossible for real estate owners and operators to succeed. Taking careful, deliberate steps toward a goal will help business leaders to manoeuvre their way through the challenges. Those who consider these five best practices will find the path to success:

Thoughtfully lean into risk. While real estate owners and operators cannot control the economy or the weather, they can control how they choose to prepare for these challenges. Selecting insurance coverage with a higher deductible can lower premiums, and considering alternative risk transfer vehicles can lower overall costs. Consider the options and work with your broker to select the right strategy for your business.

2Make safety a tenet of the organization. When it comes to safety, increasing efforts toward prevention will always be more effective than cleaning up after the fact. Implement training programs and risk management practices that keep employees safe and out of harm’s way. Demonstrate to employees that their safety matters to the organization, not just on an organizational level, but on a personal level.

Analyze loss trends. Make any losses a part of your organizational story. Look closely at the data to determine the root causes of any large loss, and make sure you understand what you’re doing to avoid that issue the next time. Rectify any delayed building repairs and improvements to demonstrate the resilience of the property and secure the best rates and conditions.

4Increase workforce engagement through benefits. Organizations that are offering personalized benefits continue to come out ahead in attracting workforce, boosting engagement and recruitment. Look at the data and work with your broker to select the benefits that will most motivate and engage your employees.

5Be transparent with your broker. Organizations that work with a broker have a leg up – but only if they use the broker in the right way. First, ensure you’re working with someone who specializes in the real estate industry to be sure they understand the risks and challenges of the business. Be sure you evaluate exposures properly and share changes you make with your broker so they can better support you. Finally, start your insurance renewal process early, to give your broker time to find the best options for your specific circumstances.

Housing Goals and Policies

Campaign promises shaping the federal election outcome

Housing remains a key issue as Canada approaches its upcoming election on April 28. From homeownership incentives to tax reductions to the expansion of public housing, each party’s platform showcases its unique strategies aimed at improving housing affordability for Canadians. That said, unlike past elections, strained Canada-U.S. relations and the continuous threat of Trump tariffs will largely determine the outcome as more Canadians seek to elect a Prime Minister who aligns with their economic interests.

For the rental housing sector, certain policies from each party have emerged as more favourable than others given the industry’s overriding goal to deliver quality rental housing at a pace needed to keep up with the nation’s changing housing requirements.

“Canada needs a large-scale, long-term housing strategy—one that outlasts political cycles and enables consistent delivery across decades, not just mandates,” said Michael Tsourounis, Managing Partner and Chief Investment Officer at Hazelview Investments.

“The private sector has the talent, scale, and expertise to deliver. Canada has an extremely robust development ecosystem already in place that is ready to build housing now.”

Housing Innovation

Tsourounis’s comment follows multiple housing announcements made by major parties in early April, including the Liberal Party’s proposal to establish a federal Crown agency called Build Canada Homes (BCH) that would oversee affordable housing projects. As Mark Carney put it: “We’re going to get the government back into the business of homebuilding, while partnering with workers and industry, and cutting taxes for home buyers – so more Canadians can buy their first homes.”

If the Liberal Party is elected, the BCH aims to provide $10 billion in low-cost financing and grants, with $6 billion earmarked for “deeply affordable housing,” including rental units, supportive housing, Indigenous housing, and shelters. Carney said his government also plans to revive

If elected, Mark Carney says he will invest in modular technology as part of his housing innovation plan, with $25 billion in financing currently earmarked for prefabricated and modular builders. Modular construction is seen as a key solution to Canada’s housing crisis, allowing homes to be built faster, more affordably, and more sustainably. While Pierre Poilievre has not explicitly committed to investing in modular housing, his plan emphasizes innovative private-sector partnerships that could lead to similar outcomes.

the Multiple Unit Rental Building (MURB) cost allowance, a tax incentive from the 1970s that successfully encouraged new rental apartment construction.

“The government’s role should be to unlock supply,” Tsourounis said. “This means streamlining approvals, cutting red tape, and removing policy friction that slows progress, as well as providing targeted incentives that aid in the construction of housing supply. With continuity, clear policy, and targeted incentives, the private sector can deliver housing at scale, with the quality and the efficiency Canadians need.”

On this front, the Liberals’ plan to build on the Housing Accelerator Fund in an effort to reduce housing bureaucracy, zoning restrictions, and other red tape. Carney also promises to cut municipal development charges in half for multi-unit residential housing and facilitate the conversion of existing structures into affordable housing units.

Meanwhile, Pierre Poilievre’s Conservatives have been equally vocal about implementing policies to accelerate construction and “make homes more affordable.” Should the Conservative Party be victorious in the upcoming election, Poilievre’s “Building Homes Not Bureaucracy Act” promises to improve Canada’s housing supply by:

• Tying federal funding to housing starts: Cities must increase the number of homes built by 15% annually. Municipalities that fail to meet this target will face reduced federal funding, while those exceeding it will receive bonuses.

• Reducing tape: The plan aims to “cut through bureaucratic delays and regulations” that add significant costs to housing projects.

• Incentivizing faster construction: Federal transit funding will be linked to housing development, encouraging cities to prioritize building homes.

Unlocking Housing Potential

Starlight’s latest project leverages infill development to increase housing supply

by Erin Ruddy

In February, Starlight Investments announced the completion of “The Shoreview,” an 11-storey purpose-built rental community located in Barrie, Ontario. The new property overlooking Lake Simcoe exemplifies infill development—a practice that utilizes vacant parcels of land within existing urban areas for new construction. This method aims to optimize the use of available space, enhance urban density, and minimize the need for outward expansion. It frequently involves repurposing sites such as former industrial zones, parking lots, or empty plots situated between existing buildings.

We are pleased to complete this transformational purpose-built rental development in the beautiful City of Barrie,” said Howard Paskowitz, Vice President, Development, Starlight Investments. “The Shoreview reinforces our commitment to building sustainable and inclusive rental communities that provide quality of life and vibrant spaces for residents to live and thrive for the long term.”

As one of Canada’s most active developers of purpose-built rental housing, Paskowitz said Starlight will help address Canada’s housing needs by leveraging creative and innovative strategies like infill development. In addition to The Shoreview, the company is actively assessing and leveraging underutilized land within its portfolio to bring more residential housing to existing communities.

“With a pipeline that is positioned to deliver over 28,000 rental suites within the next decade, we are committed to expanding the availability of high-quality, purpose-built rental housing across the country,” he said. “To date, we have completed over a dozen successful development projects, with 80 more in the pipeline and six under construction, totaling over 1,700 suites.”

Starlight’s approach to infill development includes integrating new apartment buildings, townhomes and modern green spaces to existing properties, all designed to meet the lifestyle needs of today’s renters.

“By prioritizing sustainability and communityfocused design, Starlight is playing a key role in shaping the future of rental housing in Canada and delivering more homes, faster,” he said.

Urban densification

Infill development provides several key advantages, making it a viable approach for urban growth and sustainability. This method is being adopted by many developers looking to densify existing properties and reduce the need for urban sprawl. Additionally, it increases efficiencies by building in areas already equipped

“From an environmental perspective, infill development contributes to preserving natural ecosystems, promoting walkability, and reducing dependency on cars, thereby lowering greenhouse gas emissions.”

Modernizing Multifamily Housing

Multifamily construction is expected to slow down in the coming years due to current market conditions such as high financing costs, a worker shortage, and tariffs enacted by the Trump administration. At the same time, the market is experiencing an influx of new inventory making it a highly competitive market.

Given these factors, owners and operators are searching for ways to enhance value and justify rents at their existing properties—this includes optimizing their assets through retrofits. According to a new white paper from Parks Associates, demand for retrofitting is soaring, especially for solutions that can be deployed in place without requiring additional renovations.

The study, conducted in 2024, found that nearly 90 per cent of multifamily owners and operators plan to deploy, upgrade, or replace a current system with a smart building solution within the next 12 months. Meanwhile, owners and operators that have already implemented new proptech at their buildings have noticed numerous benefits from these investments, with 20 per cent seeing an increase in operating efficiencies and 16 per cent reporting lower insurance costs.

To download the report, visit: www.parkassociates.com

with roads, utilities, and public transit, minimizing the cost and need for new infrastructure.

From an environmental perspective, infill development contributes to preserving natural ecosystems, promoting walkability, and reducing dependency on cars, thereby lowering greenhouse gas emissions. Infill housing developments often feature mixed-use spaces, enhancing access to services, retail, and recreational opportunities within communities.

About The Shoreview

The Shoreview rental community is situated near Shoreview Park and the Lake Simcoe waterfront, offering residents convenient access to an array of community services, shops, restaurants, and nearby public transit. With 215 rental suites currently in lease-up, the property is adjacent to an existing 192-unit residential tower. According to Starlight, it targets both individuals and families, with on-site amenities that include a fully equipped gym, a social room, a pet spa, electric vehicle charging stations, and a rooftop terrace. The units also incorporate sustainable features such as energy efficient in-suite appliances and smart thermostats.

For more information, visit: www.renttheshoreview.com

Industry Hot Topics

Affordability, supply shortages among top concerns for renters

As peak rental season approaches, affordability, supply shortages, and difficulties securing a rental unit remain top concerns across the country, according to the Spring 2025 Renter Preference Survey from Rentals.ca.

“With affordability at the forefront of renters’ concerns, our Spring 2025 survey highlights the urgency for more rental supply,” said David Aizikov, Manager of Data Services. “The data is clear—many Canadians are struggling to find homes within their budget, and the demand for rental housing continues to grow. As we enter peak rental season, policymakers and industry stakeholders must take action.”

Findings from the survey show that renters are still facing high

housing costs, with 62 per cent of respondents stating they are struggling to find affordable listings. Despite strong demand, only 27 per cent said they are satisfied with available properties. Additionally, 76 per cent said they believe that increasing housing construction is necessary to address these issues.

For those currently in the market, the rental search remains a frustrating experience. 52 per cent of respondents said it has been very difficult to find a rental, while just 4 per cent described the process as easy. Rising interest rates have also impacted renter behaviour, with 45 per cent of respondents delaying home-buying plans due to financial uncertainty.

Despite these obstacles, renters remain highly mobile: 8 per cent said they have moved in the last few months; 25 per cent in the past year; and 30 per cent in the last two to three years.

First-time renters are particularly affected by affordability concerns and competition in the market. 79 per cent of the survey respondents said they plan to move within the next two months, despite the challenging process. 72 per cent reported difficulty securing a rental, especially those looking for units priced at $1,500 or less per month. The majority of new renters—76 per cent—said they agree that more housing construction is urgently needed.

When it comes to searching for a rental, digital platforms play a dominant role. 76 per cent of renters said they rely on rental websites to browse listings, while fewer turn to social media, local classifieds, or word of mouth. 48 per cent said they are searching with a roommate or spouse, while 19 per cent are first-time renters.

Centurion appoints new president and CEO

Centurion announced it has appointed John McKinlay as its new president and Chief Executive Officer, effective March 31, 2025. McKinlay brings nearly 30 years of industry experience to Centurion. Most recently, he served as Chief Executive Officer of LaSalle Investment Management Canada, managing approximately $4.2 billion in assets

across a range of investment vehicles. Prior to that, John held key leadership roles at Bentall Kennedy (now Bentall GreenOak) and GE Capital Real Estate, where he developed a deep expertise in investment management, strategic planning, and asset optimization. John holds a BA from Boston University and an MBA and JD from Willamette University.

“I am honoured to fill the role of president and CEO at Centurion,” he said. “With a strong team in place, I look forward to leveraging my experience in private equity and global capital raising to drive growth and capitalize on evolving market opportunities.”

His appointment follows a period of significant expansion within Centurion’s leadership team, including the addition of Paul Chin (CIO), Ryan Buzzell (EVP,

Joint Ventures and Mortgages), and Stephen Marshall (EVP, Property Operations). This growth coincided with several key internal promotions as well.

“With John taking on the day-to-day responsibilities of the CEO, I will transition to the role of Executive Chairman,” said Greg Romundt, Founder & Executive Chairman of Centurion. “The addition of John and the other strategic hires and promotions Centurion has recently completed will allow me to focus on long-term strategic vision, market positioning, investment strategy and leadership development – ensuring Centurion remains at the forefront of the industry.”

Since its founding in 2003, Centurion has experienced significant growth, now managing nearly $8 billion in assets. The firm says it attributes its success to a “world-class team that can anticipate market shifts and execute a forward-looking vision.”

Manitoba introduces new safety measures

The Manitoba government is promising new measures to target both negligent rental housing landlords and miscreant tenants. The newly released provincial budget announces pending new policy and legislation to hold landlords accountable for building safety and maintena nce, and to make it easier to evict tenants who conduct drug deals or carry weapons in a residential building.

“We’re strengthening tenant rights to ease the affordability pressure on renters, and to provide stability and build long-term confidence in Manitoba’s rental housing market for developers and for landlords,” the budget document states.

It suggests “regular inspections and compliance checks” will be the mechanisms to hold landlords accountable for building upkeep. New flexibility to evict what are described as “problem tenants” is to be contained in legislation scheduled to be tabled this spring “to make families and communities safer”, and is identified as part of package of measures aimed at cracking down on drug-dealing and organized crime.

Also on the safety and security front, the government is expanding upon the rebate for security technology and products it introduced last year, with the allocation of an additional $2 million for qualifying renters and homeowners and $10 million for small to mid-sized businesses. The original version of the rebate provided a rebate of up to $300 per applicant for qualifying purchases.

“With Budget 2024, the program was extremely popular, and the government did multiple intakes, providing support to over 8,500 Manitobans,” the budget document states. “Many Manitoba businesses have been impacted by retail crime and vandalism. We’re saving them money while supporting them to protect their businesses and keep communities safe with an expansion of the popular security rebate program.”

B.C. seismic design, adaptable units in effect

New BC Building Code (BCBC) 2024 provisions for adaptable dwellings and seismic design came into effect March 10, 2025, with adaptable dwelling requirements being gradually implemented. After consulting the home-building community and recognizing current economic uncertainty, such as the recent U.S. tariff threat, the adaptable dwelling requirements will be introduced in a phased approach, starting at 20 per cent of units in large residential buildings, as opposed to the previously proposed 100 per cent.

This change will help reduce potential costs associated with these changes, allowing for a balanced approach to phasing in adaptability requirements, while meeting the need for suitable, affordable housing. It will also allow the Ministry of Housing and Municipal Affairs to continue collaborating with key partners to help enable more adaptable housing in the province.

Projects where design work began before March 8, 2024, may continue to follow the 2018 BC Building Code, provided they apply for a building permit before March 8, 2027. Projects for which a building permit will be applied for on or after March 10, 2025, must comply with the BCBC 2024, including the seismic-design and adaptabledwelling provisions.

The updated provisions for adaptable dwellings include features that can be adjusted to meet occupants’ changing needs due to illness, injury or aging. In large residential buildings and ground-floor suites of smaller apartments, one in every five units is required to have accessible doorways and travel paths, manoeuvring space in bedrooms, bathrooms and kitchens, controls at accessible heights and reinforced bathroom walls for future installation of grab bars.

In line with the latest scientific data, BCBC 2024 seismic provisions have been developed with the primary goal of preventing structural collapse during earthquakes. These updates focus on improving the resilience of buildings, particularly in high-risk areas such as the Capital Regional District (CRD) and parts of the Lower Mainland. The province will be exploring how mass timber can help provide cost-effective design solutions to meet the seismic requirements and will focus on specific solutions for the CRD.

Affordable housing plans for Quebec penitentiary site

Saying goodbye to the carbon tax

As of April 1, 2025, the federal government ceased applying the consumer carbon tax, meaning Canadians no longer face a direct levy on fuel and other carbon-emitting products they purchase. What are the potential implications for apartment building owners and operator Here’s a summary, according to Artificial Intelligence:

1. Energy costs: Apartment building owners may see reduced costs for heating and energy, as the carbon tax previously added surcharges to fuels like natural gas and propane.

2. Maintenance and upgrades: Without the car bon tax incentivizing energy-efficient upgrades, some owners might delay investments in insula tion, heat pumps, or other green technologies.

3. Tenant relations: Lower energy costs could lead to reduced utility bills for tenants, potentially improving tenant satisfaction. However, owners who invested heavily in green upgrades might feel the financial pinch if those investments don’t yield the expected savings.

4. Long-term emissions goals: The removal of the tax might slow progress toward Canada’s emissions reduction targets, which could lead to future regulatory changes impacting building owners

The federal government has announced the transfer of the SaintVincent-de-Paul-Penitentiary property in Laval, Quebec, to Canada Lands Company (CLC) as part of its plan to construct four million new homes. The site ceased operations as a federal correctional facility and was designated a surplus asset in 1989. In 1990, it was declared a National

SMART BUSINESS SOLUTIONS

Canadian proptech companies are leading the way

Property technology platforms have exploded across Canada, with each year bringing a steady stream of new additions to the forefront. Supporting Canadian-made companies has never been more important. Here are some notable new standouts, as reported by the Proptech Collective:

HOSTAWAY - An all-in-one vacation rental software solution for growing property managers, providing the tools to automate and simplify marketing, sales, communication, operations, reporting and accounting. Hostaway’s software is unique in that it is flexible, customizable and grows with each business. Find out more at: www.hostaway.com

GOBOLT - A B2B logistics company that uses in-house technology and infrastructure to create integrated solutions to reduce the complexity of managing fulfillment and deliveries. By automating processes, optimizing routes, and maintaining operational control, GoBolt eliminates unnecessary friction. Find out more at www.gobolt.com

JOBBER - An award-winning platform that helps small home services businesses organize their operations, from scheduling jobs and managing their crews, to invoicing customers and collecting payments. Unlike manual processes and single feature apps, Jobber’s platform streamlines and automates daily operations, replacing duplicate entry and repetitive tasks with tailored automation. Find out more at: www.getjobber.com

CERTN - Through AI and automation, Certn provides easy online background checks for tenants or businesses looking to hire. The program facilitates criminal record checks, instant identity checks, and employment verification from 200+ countries and territories. Find out more at: https://certn.co