It has been predicted that rentals will become increasingly popular amongst Canada’s young adults in the coming years, with purpose-built rental stock anticipated to play a pivotal role in the shift from house ownership.
RentSeeker.ca, a real estate firm stated that the present fiscal environment is most conducive to greater investment in developments especially intended for rental use.
“As investors and stock holders deal with a stormy economic situation, new investment streams are needed, and real estate is booming,” the commentary noted.
“[When] borrowing money is cheap, both builders and buyers of apartments and condos reap the benefits. Lowered interest rates mean less debt for builders, and low mortgage rates makes buying more affordable, especially for first-time property owners.”
“Both factors fuel the need for new developments, and the added jobs created from all these projects has certainly helped the Canadian economy that is experiencing tough times in other sectors like manufacturing and energy,” it added. “Builders are hammering out buildings in record numbers, and investors like the steady and reliable income that the purpose-built units provide.”
The main reason propelling this change is the fiercer purchasing power of a generation that has a completely different idea of what a “home” should be.
“The consumeristic, modern mentality of making life count and living in the moment means short-term life enjoyment (travel, fine dining) can supersede long-term financial goals,” RentSeeker.ca said.
“Whether you attribute that to the generation of Millennials or simply acknowledge that many people now prefer to have liquid assets and enjoy themselves, Canadians are living a more nomadic lifestyle than previous generations. This includes life changes like switching careers (let alone jobs) and living in the proverbial ‘now.’”