The multifamily real estate sector has remained relatively stable thanks to low vacancy rates, and low interest rates that encourage investment, along with the steady capital and asset appreciation that these properties offer to investors.
MULTIFAMILY MARKET FACTORS
Strong market fundamentals make multifamily real estate in Ontario a smart investment opportunity. During the pandemic, rent collections remained around 97 percent, providing a steady income.
New Construction also does not fall under rent control; therefore, landlords are able to adjust the rent if necessary.
EMERGING MULTIFAMILY TRENDS
In densely populated urban areas such as Toronto, land is at a premium, so city planners are now looking at vertical urbanism - building vertically rather than the traditional horizontal model.
There has been a shift in the multifamily sector priorities, due to the pandemic. As working from home has become the norm, it has brought on the demand for upgrades in units, such as in-suite laundry, a quiet space to work, and a new interest in green space. Low-rise multifamily properties in quiet residential neighbourhoods address these needs that condos sometimes cannot provide returns on.
As vacancy rates for rental units are expected to remain low, the demand for multifamily construction will continue to grow. An increasing population, borders opening, housing prices pushing more and more people to rent rather than buy, as well as an aging population looking to downsize are all determining factors in multifamily sector investment volumes.
A popular way in which to invest in real estate is to own a collection of rental properties, essentially a real estate portfolio. This form of investing provides regular monthly capital, development profits, and investment growth.
Read more about this topic here: https://renx.ca/multifamily-withstands-pandemic-better-most-property-types/