Ontario’s Residential Construction: A Market in Peril. Ontario’s residential construction industry is facing a critical moment. Historically, the GTA has led North America in construction cranes—often surpassing the next five cities combined. But this could soon be a thing of the past. Here’s why: • Hi-rise construction, responsible for 80% of Ontario’s new builds since 2018, has nearly stopped. • Up to 100,000 condos will be completed in the next 30 months, with most intended as rental investments. However, falling rents and declining resale prices ($1,100/sq. ft pre-construction vs. $950/sq. ft resale) have shattered the investment math. • Immigration cuts and a possible population decline in the GTA spell trouble for demand. • The single-family home market isn’t faring any better. New subdivisions are rare, and appraisals often fall short by hundreds of thousands. The combination of a slowing economy, rising costs, and diminished demand has brought Ontario’s new construction projects to a standstill. What’s next for the industry? Share your insights below! #RealEstateInsights #ConstructionTrends #OntarioHousing #EconomicForecast #LinkedInDiscussion
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The Rise of Purpose-Built Rentals: A Key to Solving Canada’s Housing Challenges Canada’s housing market has long grappled with affordability and supply shortages, but a promising trend is emerging: the resurgence of purpose-built rental construction. According to RBC Economist Rachel Battaglia, rental construction is experiencing a “renaissance,” with completions and new starts on the rise thanks to government incentives and growing demand for multi-unit housing. https://lnkd.in/drg-tYs3 #GoodlandEquityPartners #PurposeBuiltRentals #AffordableHousing #RealEstateInvesting #SustainableDevelopment
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Founder of Income Property Specialists | Venture Partner at Shadow Ventures | San Francisco Bay Area Apartment Expert
Recently apartment tenants have seen rent relief across the country in some of the biggest cities due to “the enormous amount of new supply being delivered by developers.” Despite this period of relief, we shouldn’t expect it to last too long. Apartment construction is beginning to slow due to a rise in interest rates and inflation, pushing construction costs up. That means supply will start to decline while demand is expected to slowly increase (exacerbated by higher home prices). Economic theory teaches us to expect a rise in rent again. #Apartments #PropertyManagers
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The biggest apartment construction boom in four decades flooded the market with new supply over the past two years. Apartment owners had to contend with a surge in empty units. That is starting to change. The vacancy rate, or the share of apartment units that are empty, stopped rising for the first time in three years last quarter, as demand for apartments rose to its highest levels since 2021, according to CoStar. If that demand is sustained, landlords likely will have more pricing power starting sometime next year.
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The residential construction industry is, in many ways, being held hostage by a runaway bureaucracy, RESCON president Richard Lyall writes in a column in Canadian Real Estate Wealth. Despite undertakings to speed up #development approval applications, metrics show that the City of Toronto, for example, is still lagging, with intolerably long timelines for #zoning amendments and site plan approvals, he states. #housingsupplycrisis #onpoli #topoli #planning #construction
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Although apartment construction is expected to break records in 2024, the U.S. is still behind on the number of new units some say are needed by 2035 to mitigate affordability issues. #JLLgovernment #government #governmenttrends #futureofwork
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Design Authority | Innovative Construction Advocate | 5x Inc 5000 Fastest Growing Company Founder
New apartment construction in the U.S. is on track to hit a 50-year record high, economists report, with apartment completions likely to approach 600,000 units by the start of 2025. Read on. #apartmentconstruction #construction
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Many may find this shocking, but I don't. When fewer apartments are built, rents go up. Supply and demand is a simple concept that applies to housing production just like everything else in the marketplace. Do you believe if we build more housing, rents will decrease? Apartment Construction Is Slowing, and Investors Are Betting on Higher Rents - WSJ https://buff.ly/3B69YLq #housing #apartments #development
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Home Loans in 30 Minutes, NOT 30 Days, Award-Winning Mortgage Specialist, Delivering Tailored Finance Solutions in Perth's Market. #FTB Mortgage Specialists – Let Us Guide You Through the Journey.
Brace for the high-rise apartment crash. Let me give you the bullet points: The highest official cash rate since 2011. The 40% surge in construction costs since the beginning of the pandemic. The residential building industry is competing for scarce labour and materials with government ‘big build’ infrastructure projects. The collapse of nearly 3000 construction firms in 2023-24. The only realistic solution to the housing shortage and rental crisis is to dramatically moderate net overseas migration. https://lnkd.in/dKj5cFE8
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AZ Big Media reports that the number of building permits in Arizona has dropped by 4.5% from 2022 to 2023. With construction slowing down, it’s a great time to get a new build while availability is up, or to keep an eye out for price increases to sell your house as the supply of homes for sale drops. #realestatetrends #realestatenews #housing #realestate #azrealestate
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Although apartment construction is expected to break records in 2024, the U.S. is still behind on the number of new units some say are needed by 2035 to mitigate affordability issues. #JLLgovernment #government #governmenttrends #futureofwork
