Latest news with #rentalhousing
Globe and Mail
30-05-2025
- Business
- Globe and Mail
Despite rise in Vancouver rental vacancies, affordability is still a distant dream
As the vacancy rate goes up in Vancouver, renters do have more options – unfortunately, those renters don't include lower-income households. 'We are still far from an abundance of affordability in our time, especially for those on living wage incomes,' said Andy Yan, associate professor of professional practice in urban studies at Simon Fraser University. 'We define that group as those households earning less than $50,000 a year. There is very little new housing for them.' Prof. Yan was responding to a newly revised city of Vancouver report called the Housing Vancouver Progress Update 2024, which measures the city's proposed housing targets. Last year was a record year for rental apartment approvals, as the number of applications for rental buildings grew and the number of condos conversely, shrank since 2022. By way of comparison, in 2018, when the condo market was strong, the number of condos approved was 4,511, and the number of purpose-built apartments approved was 1,018, according to the city report. In 2024, 832 condo units were approved, and 5,587 apartment units got the green light. A key reason behind the inversion from condo to rental unit is the market downturn. Because there is more rental supply coming onto the market, the rents for new apartments should come down. But because of the high cost of land, construction, insurance, financing and other costs, developers are more likely to hit pause than lower rents, said Prof. Yan. One of the slides in the report showed that 73 per cent of approvals of market rental housing were for households making $90,000 to $200,000. Only 9 per cent of rentals approved were for those making $60,000 to $150,000 and 4 per cent of rentals were suitable for households earning $20,000 to $100,000, which are categories generally known as 'below market.' The report noted: 'Additional senior government partnerships are needed to deliver housing for low- to moderate-income households.' 'This is the biggest question: do market developers keep on building in the shadow of declining rents?' asked Prof. Yan. 'There are rental units coming into the pipeline at the high end, but if you look at the data from the city and a recent Canada Mortgage and Housing Corporation rental report, the units with rents over $1,750 have a 2.4 per cent vacancy rate. Any units with rents less than $1,000 a month have a vacancy rate of 0.9 per cent. When high-end rental markets reach a more balanced state, will the appetite for construction continue while lower-income tenants remain hungry?' Just because a project gets approval doesn't mean it will get completed any time soon. David Hutniak, chief executive officer of Landlord BC, said the 'geopolitical environment' and economic uncertainty could curtail rental construction. 'My concern is that rental projects are being shelved because the numbers don't work,' said Mr. Hutniak. 'That has longer-term implications – none of them good – and that's why we need all levels of government to come to the table to eliminate the numerous barriers so that we can keep building new rental housing.' The city's annual progress report summarizes what most Vancouverites already know: that a lot of expensive housing got built in the hot-market years before the pandemic, and not enough truly affordable housing got built. It states that 'rental demand remains strong for housing that serves low- to moderate-income households but slows for supply at higher rents.' Opinion: High-rise towers not the answer to the housing affordability crisis in Vancouver, critics say After so many years of policy aimed at delivering affordable housing, now that the city is finally approving rentals in record numbers, how is it that so much of it remains unaffordable? City councillor Pete Fry said the city analysis is missing the net loss of rental housing units and how they relate to household incomes. 'So, while development approvals are meeting targets for rental housing, the definitions of 'market' or 'below market' are mercurial and don't necessarily capture local needs, only what the market will bear,' said Mr. Fry. 'Unfortunately, amidst new policies, like the city leveraging public-owned land to build market [rental] instead of affordable housing, increasing calls from the development industry to reduce the amount of inclusionary zoning, and generally rising costs for everything including infrastructure and construction – we are heading in the wrong direction for affordable housing, and in my opinion, desperately need significant senior government intervention to reverse that trend.' The federal and provincial caps on international students flowing into the province in 2024 had a significant impact on the current supply increase in Vancouver, according to the CMHC. But the CMHC also forecasted an increase, not a decrease, in rents. The CMHC forecasts a vacancy rate of 2.1 per cent this year, which is higher than 1.6 per cent last year in Metro Vancouver. By 2026, the CMHC projects a vacancy rate of 2.4 per cent. But it also forecasts the average monthly rent for a two-bedroom to go up to $2,605 by 2026, higher than the estimated $2,461 average this year. And by 2027, the average rent for a two-bedroom in Greater Vancouver is projected to go up to $2,758. Despite those projections, Mr. Hutniak said his members are telling him that the rental market has become more challenging. 'Many are experiencing increasing tenant turnover as tenants take advantage of the softening market, which has presented them with more choice and lower prices,' said Mr. Hutniak. 'For rental providers, the process to secure new tenants for vacated units is taking longer at lower asking rents, with negotiation likely an option for savvy renters who monitor the market.' The City of Vancouver gets into the rental game Landlords are trying to prevent turnover by offering free access to amenities, or free parking, or forgoing the 2025 allowable rent increase, he said. 'We know that there are a meaningful number of new rental buildings coming on-stream, which is going to further exacerbate the current situation.' Craig E. Jones, associate director of Housing Assessment Resource Tools at University of B.C., said the overall vacancy rate of 1.6 per cent is low, and it has to get to 3 per cent to be considered healthy. But as a proponent of purpose-built rental housing stock, he said it's going in the right direction as more rental gets built, and although rents aren't coming down significantly, they are slowing down, said Mr. Jones. He looked at apartments by age and found that the many apartment buildings constructed between 1960 and 1979 only went up by 1.1 per cent from 2023 to 2024. 'I don't think it's about looking for average rents to actually come down. I think it's about seeing average rents increase at a more reasonable rate. We're not seeing those big 6 to 10 per cent increases year over year any more,' he said.
Yahoo
28-05-2025
- Business
- Yahoo
Controversial Commercial Drive tower development discussed at public hearing
A controversial plan to redevelop the Safeway location on East Broadway near Commercial Drive was discussed at a public consultation at Vancouver city council Thursday night, with more than 120 people registering to speak. Redevelopment at 1780 East Broadway has been in the works for years with a number of past rezoning applications and withdrawals, city planner Simon Jay said at the beginning of Thursday's public hearing. Westbank Projects Corp/Crombie REIT, on behalf of Snowcat Property Holdings Ltd. has applied to build three purpose-built rental towers, ranging in height from 36 to 43 storeys, near the Commercial-Broadway SkyTrain station—an area that consists mostly of single-family homes, duplexes, low-rise apartments and retail buildings. WATCH | Commercial Drive tower development faces city hearing The proposed towers would have more than 1,000 rental housing units, with units equal to 10 per cent of the residential floor area available at below-market rent. The plan also includes retail space, including a grocery store, office and commercial space, a city-owned child-care facility, and a public plaza running parallel to the SkyTrain station. During Thursday's hearing, which ran for about four hours, resident Taylor Curran urged council to approve the project, saying it will deliver much-needed rental housing. "Building new housing does impose costs on existing residents and it does change the neighbourhood, but the cost of blocking new housing is so much greater," he said. Zakir Suleman of the community group No Megatowers at Safeway said housing should be built on the site, but the plan to dedicate 10 per cent of floor area to below-market housing falls short of the city's 10-year housing targets. "We do need to build on this site, we do need to densify this neighbourhood. But the proposal as it stands is unacceptable in the amount of affordability it brings in for future generations," Suleman said. Peter Waldkirch addressed council holding an accordion, saying even larger towers have been approved in Burnaby and Surrey. "I actually think it's completely kind of bizarre and backwards that we're building and approving taller, bigger, denser, more housing in the suburbs than we are here in the core of the city," he said. "That doesn't make sense to me." He then voiced his support for the project with a song he called The Happy Megatowers Polka, which he sung to the tune of The Happy Wanderer. Prior to the hearing, Adam Abti, who grew up in the area, told CBC News that he supports the towers. "The more housing we have in general, the more supply and the lower the price," Abti said. "So it's better for everyone." The application is being considered under the Grandview-Woodland Community Plan. A referral report from city staff notes that the application "exceeds the anticipated height and density expected in the plan," but "otherwise generally meets the intent of the plan." The report also notes that the proposed towers would add more than 1,000 rental units without displacing any existing residential tenants. The public hearing was recessed Thursday night and will reconvene on June 10, and city council will vote on whether to proceed with the plan following the public hearing.
CTV News
21-05-2025
- Business
- CTV News
‘Financial landlords' driving up rent prices in Toronto faster than other types of landlords: study
Condominiums are seen under construction in front of the skyline in Toronto, Ont., on Tuesday October 31, 2017. THE CANADIAN PRESS/Mark Blinch A group known as 'financial landlords' are driving up the cost of rental housing in the city, worsening affordability, according to a new study by researchers at the University of Waterloo. Financial firms, including private equity, asset managers, and real estate investment trusts (REITs), have been snapping up rental housing stock in Toronto for decades and according to the study, these groups charge monthly rents that are 44 per cent higher than the average neighbourhood price in Canada's largest city. This represents about $670 more on average per month, according to the researchers. 'Most people can't afford the housing they are living in, and these firms are in part responsible for pushing that change,' Martine August, one of the authors of the study and professor of planning at the University of Waterloo's Faculty of Environment, said in a news release. 'They are buying up buildings and turning them into investment products, raising the rents and making communities less affordable for people.' The study notes that the premium being charged by financial landlords is 'much higher' than other landlord types, which include 'chain' and 'chain managed' landlords, landlords who own multiple properties, single owners, and non-profits. According to the study, 'chain' and 'chain managed' landlords charge about 30 per cent more than average neighbourhood rents, while owners of multiple properties charge a premium of about 15 per cent. Single owners charge a premium of 22 per cent and non-profits actually charge about one per cent less than average rents. Financial landlords raised rents faster than any other landlord type and increased rents 'more sharply' in areas predominantly housing low-income and racialized people, according to the study. The study, which the authors say is the first of its kind, involved researchers developing a new dataset from 'a range of sources' to evaluate rents in Toronto by property, landlord, and landlord type. 'Until now, no one had been able to prove that housing financialization was driving up rents,' a news release accompanying the study read. 'Financial firms are leading the industry in raising rents and worsening housing affordability. This matters because they continue to dominate in apartment ownership, acquiring almost all suites sold in Toronto in recent years. Our findings suggest that the more they own, the worse affordability will get.' The researchers note that their findings back up recommendations from community advocates who want to 'rein in financial firms.' 'The government has goals to improve housing affordability, but their programs give funding to organizations who eviscerate housing affordability,' August said. 'We don't think that they should be accessing support from the Canada Mortgage and Housing Corporation or Canada's National Housing Strategy.'
Globe and Mail
16-05-2025
- Business
- Globe and Mail
CIBC Innovation Banking Serves as Lead Arranger of a Syndicated Debt Facility for Rentsync
CIBC Innovation Banking announced today that it recently acted as the lead arranger and administrative agent of credit facilities for Rentsync. The funding provided financing for future capital to support the company's growth. Rentsync is a leading software and data company based in Toronto, specializing in serving the Canadian rental housing industry. 'We are thrilled to support Silversmith Capital Partners and the Rentsync team as they continue their leadership and growth in the rental property management space,' said Adam Weiers, Executive Director, CIBC Innovation Banking. 'Rentsync is a trusted partner to its rental property management clients, and its platform continues to transform the industry landscape.' About CIBC Innovation Banking CIBC Innovation Banking has 25 years of specialized experience in growth-stage tech and life science companies across North America – a longer track record than most banks. CIBC Innovation Banking now has over $11 billion in funds managed including life sciences, health care, cleantech companies, investors, and entrepreneurs, and has assisted over 700 venture and private equity-backed businesses over the past six and a half years. The bank operates out of 14 global locations in San Francisco, Menlo Park, New York, Toronto, London, Austin, Boston, Chicago, Seattle, Vancouver, Montreal, Atlanta, Reston, and Durham. Connect with us today to start the conversation. About Rentsync Based in Toronto, Rentsync is a leading software and data company, specializing in serving the Canadian rental housing industry. Rentsync offers a range of innovative products and services designed to streamline rental property marketing, leasing, and property management. It also owns and operates the Network, the leading online marketplace for rental housing in Canada. Its commitment to professionalism, innovation, and accessibility has made it a trusted leading partner for rental housing marketers, leasing agents, and renters. About Silversmith Capital Partners Founded in 2015, Silversmith Capital Partners is a Boston-based growth equity firm with $3.3 billion of capital under management. Silversmith's mission is to partner with and support the best entrepreneurs in growing, profitable technology and healthcare companies. Representative investments include ActiveCampaign, Appfire, Apryse, DistroKid, Iodine Software, LifeStance Health, Onbe, and Webflow. For more information, including a full list of portfolio investments, visit
National Post
16-05-2025
- Business
- National Post
CIBC Innovation Banking Serves as Lead Arranger of a Syndicated Debt Facility for Rentsync
Article content TORONTO — CIBC Innovation Banking announced today that it recently acted as the lead arranger and administrative agent of credit facilities for Rentsync. The funding provided financing for future capital to support the company's growth. Article content Article content Rentsync is a leading software and data company based in Toronto, specializing in serving the Canadian rental housing industry. Article content 'We are thrilled to support Silversmith Capital Partners and the Rentsync team as they continue their leadership and growth in the rental property management space,' said Adam Weiers, Executive Director, CIBC Innovation Banking. 'Rentsync is a trusted partner to its rental property management clients, and its platform continues to transform the industry landscape.' Article content CIBC Innovation Banking has 25 years of specialized experience in growth-stage tech and life science companies across North America – a longer track record than most banks. CIBC Innovation Banking now has over $11 billion in funds managed including life sciences, health care, cleantech companies, investors, and entrepreneurs, and has assisted over 700 venture and private equity-backed businesses over the past six and a half years. The bank operates out of 14 global locations in San Francisco, Menlo Park, New York, Toronto, London, Austin, Boston, Chicago, Seattle, Vancouver, Montreal, Atlanta, Reston, and Durham. Connect with us today to start the conversation. Article content Based in Toronto, Rentsync is a leading software and data company, specializing in serving the Canadian rental housing industry. Rentsync offers a range of innovative products and services designed to streamline rental property marketing, leasing, and property management. It also owns and operates the Network, the leading online marketplace for rental housing in Canada. Its commitment to professionalism, innovation, and accessibility has made it a trusted leading partner for rental housing marketers, leasing agents, and renters. Article content Founded in 2015, Silversmith Capital Partners is a Boston-based growth equity firm with $3.3 billion of capital under management. Silversmith's mission is to partner with and support the best entrepreneurs in growing, profitable technology and healthcare companies. Representative investments include ActiveCampaign, Appfire, Apryse, DistroKid, Iodine Software, LifeStance Health, Onbe, and Webflow. For more information, including a full list of portfolio investments, visit Article content Article content Article content Article content Article content Article content
