What’s to come for the Canadian real estate market in 2017? Investors, property owners and real estate developers maintain their optimism, while other Canadians in The Greater Toronto Area experience increased real estate prices raising concerns around affordability. For real estate developers and other savvy investors, as long as the consider the future needs of homebuyers, there will be plenty of opportunities within the housing market.
As needs continue to evolve, urban Canada continues to grow. There is an increasing agreement that real estate developers approach mixed-use projects by analyzing and adapting their approaches.
Why Affordability is a Growing Concern In Canada?
While affordable housing has become a great concern in Canada, the demand will get higher over the next five years due to increases in immigration, municipal processes and long approval processes. Lack of supply will continue cause prices to rise, adding more pressure on what’s affordable for residential real estate buyers.
How the Canadian Economy Plays a Role?
It’s no surprise that Canada’s economic performance was quite weak in 2015, but today in 2017 it’s rebounded. In the past, affordable housing and high income-to-debt ratios were the greatest contributors to the decline in residential real estate.
The Outlook on Residential Properties
In cities like Toronto, Mississauga and Brampton, urban immigrants are ready and willing to invest in residential properties such as condominiums, creating a strong and healthy demand for these residential property types. However, while in high demand in these cities for condo real estate, the rest of Canada’s market is a bit more somber, as buyers prefer single-family homes.
While we progress into 2017, mortgage-to-income ratios are expected to stay above the average in Canada. In the high-priced Toronto housing market supply of single-family homes is limited, thereby creating a greater opportunity for condo markets residential buyers who find it hard to afford a single-family residential property.
Where Real Estate Developers & Investor Should Place Their Focus in 2017?
Real estate developers and investors should focus their attention in urban mixed-use developments and multi-family residential rental properties. Why?
Mixed-use developments focus on building complete neighbourhood communities by combining offices, retail and residential providing a lifestyle that is vibrant for echo boomers and baby boomers too. It’s that most find convenient.
Thanks to Canadian demographic shifts and rising house costs, multi-family residential rental properties have become more popular. In fact, the market for this property type is probably better than it’s ever been. So long as the the economics work, it’s a wise investment opportunity for both developers and investors.