A Generation Turns to Leasing Their Homes
The ramifications of the pandemic have touched every sector of the economy, especially housing.
When the Bank of Canada lowered its overnight rate to .25%, Canadians across the country went on home-buying sprees, setting records on a weekly basis.
Just as it was responsible for starting the frenzy, the bank has brought it to a screaming halt with aggressive increases to its overnight rate, which will be at least 4%, possibly higher, by the end of 2022.
Rising mortgage rates and economic and job uncertainties have pushed home buyers to the sidelines.
Sales and prices have dramatically declined in most major markets.
Alberta is the outlier.
The province is expected to see moderate growth this year relative to other provinces, says Cameron Slavik, market analyst for Alberta at Zonda Urban.
“The most important trend is record migration in-flow to Alberta,” says Slavik.
Alberta had a net migration of 34,883 people during the second quarter of 2022, a massive 3,032% increase from the same period in 2021.
It’s reasonable to assume these newcomers have found accommodations and it’s reasonable to assume many have found only temporary accommodations until they decide exactly where they want their home to be and what type of home they want.
Given market uncertainties, will they be more likely to purchase or lease a home?
You know this. You’re building multi-family homes for the specific purpose of leasing.
If you’re not building such a product, you may want to give it consideration.
“With more Canadians shut out of the ownership market due to higher interest rates, it is conceivable that there are more upper-middle class renters than there have been in previous years,” says Rentals.ca.
“With another interest rate hike from the Bank of Canada, potential buyers are further dissuaded from purchasing, sending more demand into the rental market.”
According to Zonda Urban, several new condominium projects in Calgary are selling to Ontario investors and offering two- or three-year leasing guarantees to prospective buyers.
You’re the expert at building, but how do you find qualified tenants?
That’s where we can help you.
We are Cityblock Agency, a fully integrated project marketing and sales lease-up firm. Our carefully honed approach and programming allow for a stronger market position for your project and subsequently creates the opportunity to find better tenants looking for a longer-term home.
We also offer a concierge service to help new tenants move into their new homes.
Our full services include:
1) Launch Strategy
2) HubSpot CRM Implementation
3) Project Marketing
4) Lead Generation
5) Sales/Lease Execution
7) Reputation/Renewal management
Whether you’re already under construction or getting ready to go into the ground, let’s talk about how we can find the right tenants for you.
You build them. We’ll populate them.