Andrew Petrozzi’s Post

[Toronto, ON] In spite of government initiatives specifically designed to get more purpose-built rental off the ground, rental housing in Toronto took a major hit in the first half of 2024, new data from Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL) shows. #CMHC reported on Thursday that total housing starts across the Toronto census metropolitan area (CMA) fell 13% in the first half of 2024 compared to the same period in 2023, and that the purpose-built rental apartment segment was largely to blame for the decline, with rental starts down 40% from 2023’s “multi-decade high.” - Zakiya K. at Storeys on #RentalHousing development and the #HousingCrisis LINK - https://lnkd.in/gZXtnSxN

On Thursday, Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL) published its bi-annual housing supply report, which focuses on new housing construction trends in Montréal, Ottawa, Toronto, Edmonton, Calgary, and Vancouver, reported STOREYS. "CMHC found that total housing starts across those six census metropolitan areas (CMAs) — the six largest in the country — increased by 4% in the first half of 2024 compared to the first half of 2023, rising from 65,905 to 68,639 units." "However, it was a different story when you zoom in on Metro Vancouver, where housing starts fell in the first half of this year. CMHC attributed the decline to "slow sales and high financing costs" that "reduced profitability and increased risks." "The total number of housing starts remained at near historic highs, but rapid population growth contributed to a decline in population-adjusted starts, said CMHC. When adjusted for population size, the number of housing starts dropped from last year's peak of 58.0 starts per 10,000 population to 45.6. Meanwhile, completions per 10,000 population saw a small uptick from 32.7 to 34.2, but both are still the lowest totals since 2015, when the number was at 30.4." https://lnkd.in/g7jEbyFb #metrovancouver #residential #development #land #costs

APARTMENT CONSTRUCTION SUSTAINS HOUSING STARTS IN CANADA’S LARGEST CITIES: CMHC A surge in apartment construction, particularly in Toronto, Vancouver, and Calgary, more than offset declines in single-detached and semi-detached construction, causing the overall level of new home construction in Canada’s six largest cities for 2023 to remain virtually unchanged from 2022, according to the latest Housing Supply Report (HSR), released Wednesday by Canada Mortgage and Housing Corporation (CMHC), which examines new housing construction trends in Canada’s six largest census metropolitan areas (CMAs). Full story: https://lnkd.in/gf3pqQ3X #business #news #housing #homes #realestate #apartments Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL) Aled ab Iorwerth

Australia's rental market hits a record high, with the median weekly rent surpassing the $600 mark. Annual rent increases spiked at 8.3%, outpacing the national inflation rate. CoreLogic's Rental Market Update highlights a surge in yearly rental expenses, soaring over $8,000 since August 2020. The rental market's intensity is attributed to factors like a decline in average household size, population growth, and a temporary setback in investment housing activity. While rental stress becomes the norm, homeowners face challenges as well, with the portion of gross median household income allocated to median rent rising from 26.7% in March 2020 to 31.0% in September 2023. The national vacancy rate is below normal levels, with Melbourne experiencing the most significant tightening in 2023. Rental properties are scarce, especially in Queensland, leading to a less hassle-prone lease renewal than navigating a competitive market. Despite a Senate inquiry into the rental crisis, the lack of collective recommendations raises concerns about government responsiveness. The housing construction sector faces challenges, with the slow start to building 1.2 million homes over the next five years. A trough in new house commencements is expected in 2024, with only 95,400 new houses planned, the weakest year in over a decade. Overall, the record-breaking rents, combined with a constrained housing supply and construction challenges, pose ongoing hardships for both renters and aspiring homeowners in Australia. The Senate inquiry's limited impact suggests a need for more comprehensive and effective measures to address the escalating housing crisis. #AustraliaRealEstate #RentalMarket #HousingCrisis

In the first half of 2024, total housing starts in Canada's six largest census metropolitan areas (CMAs) grew by 4% and reached 68,639 units, up from 65,9505 during the same period in 2023. The increase was largely driven by substantial gains in Calgary, Edmonton, and Montreal, according to the latest Housing Supply Report (HSR) from the Canada Mortgage and Housing Corporation (CMHC). The report focuses on new housing construction trends in Vancouver, Calgary, Edmonton, Toronto, Ottawa, and Montreal. Developers continued to focus on multi-unit apartment buildings at historically high levels. Apartment starts, totaling 49,172 units in the first half of 2024, accounted for 72% of all new home construction in these six CMAs. Rental housing, which is supported by different government incentives, hit a record high, making up 47% of apartment starts and over one-third of total housing starts. Montreal saw a 106% surge in rental construction, with 7,192 new rental units, the highest among the six cities. https://lnkd.in/e_7drxRG

2024 will be the "Year of Affordability" in the real estate industry. Low inventory, higher interest rates, high inflation and rising construction costs. Currently there are less than 700 Active listings in the Regina, SK market and under 400 active single family homes. While that number will increase as we head into the spring market, so will demand which will put pressure on the consumer. The fact that vacancy rates are shrinking in Regina just compounds the problem. If you know somebody who's considering a move in 2024, make sure they’re working with an experienced team to navigate through these obstacles and challenges. #sellingreginahomes #reginarealestate #reginarealtor #localexperts #yqrliving #yqrlocal #reginahomesforsale #ReginaHomes

Toronto's rental housing market experienced a significant downturn in the first half of 2024, despite government efforts to stimulate purpose-built rental developments. According to the Canada Mortgage and Housing Corporation (CMHC), total housing starts in the Toronto census metropolitan area (CMA) fell by 13% compared to the previous year, with purpose-built rental starts plummeting by 40% from their previous multi-decade high. This decline was particularly evident in the City of Toronto, where rental starts dropped by 50%. The CMHC highlighted that purpose-built rental apartment starts in the Toronto CMA were the lowest among Canada’s major urban centers when adjusted for population size. Contributing factors include the high cost of financing, which has diminished potential profitability for developers, alongside a decline in asking rents. Industry sources indicated that the combination of elevated input costs and reduced profitability has deterred new rental developments. In contrast, while overall condo starts in the Toronto CMA fell by only 1%, the City of Toronto saw a dramatic 33% drop due to weak investor demand, compounded by high prices and interest rates that have limited profitability for potential investors. In suburban areas like Pickering and Oakville, however, condo starts more than doubled, as developers capitalized on lower land costs. Overall, the CMHC cautions that reduced housing starts in both condos and rental apartments, coupled with a growing population and existing supply shortages, pose serious challenges for housing affordability in Toronto.

**Housing Market Trends in 2024: A Closer Look at Canada’s Largest Cities** In the first half of 2024, total housing starts in Canada’s six largest Census Metropolitan Areas (CMAs) increased by 4% compared to the same period in 2023, reaching 68,639 units. This marks the second-highest level of new construction since 1990. However, when adjusting for population growth, housing starts remain close to the historical average and fall short of meeting rising demographic demand. Calgary and Edmonton led the way in housing start growth, largely driven by record interprovincial migration due to their affordable housing and favorable economic conditions. On the other hand, housing starts declined in major markets like Toronto, Vancouver, and Ottawa. The increase in apartment starts, particularly rental units, was notable. Nearly 50% of the apartments started in 2024 were purpose-built rentals – the highest share on record. This surge aligns with shifting demographics and the increasing unaffordability of homeownership. Despite this, condominium apartment starts dropped across most CMAs, except for Calgary and Edmonton. Developers face challenges reaching pre-construction sales targets, particularly as higher interest rates deter both investors and end-users from purchasing new condos. Developers are also focused on completing ongoing projects, leading to a record number of apartment completions in most major cities, with the exception of Montréal and Vancouver. Local municipalities and provincial governments are implementing policies to expand housing supply and meet the diverse needs of today’s buyers and renters, reflecting a growing effort to address housing affordability and availability across the country. https://bit.ly/4eHvaGh #realestate #realestatebroker #immobilier #courtierimmobiliermontreal #courtierimmobilier #montrealrealestatebroker #bhhsquebec #realestateinvesting #investissementimmobilier #maison #premieracheteur #firsttimebuyer #fsbo #luxuryrealestate #montreal

Build more housing, yes! Rent caps, NO! It is widely thought that rent caps are not the solution to rising rents. But government action can be. - Tax subsidies can help low income development pencil out. Bend, OR just received a $5 million Federal grant to subsidize low income developers in that area. - Housing vouchers can help the 50% of American renters paying over 30% of their wages in rent. But Federal housing vouchers take up to two years to receive on a lottery system! Homelessness is complex, the housing crisis is not.

Good things are happening for the supply of homes in Calgary. Inclusive zoning and low cost financing for developers are starting to move the needle. From Calgary Herald: Recent changes to zoning bylaws in the city, allowing for higher density housing in typically single-family detached home neighbourhoods, have spurred a boom in small-scale multi-family projects. “It’s just so much more affordable and feasible now to build multi-family rental,” says Darryl Terrio, broker with Re/Max Complete Realty in Calgary. A factor in that is Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL)’s MLI Select program allowing builders to get financing with only a five per cent down payment providing the new build, or renovation on an existing building, meet certain affordability, accessibility and climate compatibility metrics. #housing #housingsupply #rental #construction https://lnkd.in/gqpm7dqS