From rising sea levels that sweep away coastal properties to heatwaves that cause energy bills to spike, real estate assets face a diverse set of threats from climate change. However, while these physical risks from climate change are often well known to real estate investors, less appreciated are the challenges presented by the low-carbon transition. Nearly 40% of global carbon dioxide emissions come from the real estate sector. Of these emissions, approximately 70% are produced by building operations, while the remaining 30% comes from construction. Global and national climate goals demand sharp emissions reductions in both operations and construction, which can only be achieved through significant changes within the real estate sector.
Governments, investors, and the public have become increasingly committed to reaching net-zero emissions by 2050. This ambition intends to mitigate the worst potential effects of climate change by limiting warming to 1.5˚ C above pre-industrial levels. Policies to achieve net zero that impact the real estate sector include rising carbon prices, building and energy efficiency standards, and renewable energy mandates. High carbon prices can translate into higher energy costs and increased operating expenses for real assets. Property owners may need to make investments to meet new energy efficiency standards to avoid restrictions on renting or sales. These additional costs may make outmoded, high-emitting assets less desirable. In a study by the Bank of England, high emitting properties saw reductions in value after climate policies were enacted. Real estate market actors from large institutional investors to homeowners are also expressing a preference for sustainable assets. These shifts both reflect concerns about high-emitting properties increasing costs and their diminished desirability among the climate-conscious.
Real estate investors face dual imperatives: to produce returns and to advance the low-carbon transition. Successful investors must effectively manage climate risks and aggressively capitalize on climate opportunities, which is why many have begun collaborations with tool and data providers.
The Carbon Risk Real Estate Monitor Project (CRREM) is an open-source tool developed in conjunction with the EU to improve the quantification of real estate transition risk and accelerate low-carbon investments in the sector. CRREM provides investors with emissions requirements at the company and property level in line with science-based decarbonization scenarios. It identifies potentially stranded assets and strategic actions to take. Finally, it allows for the quantitative reporting of transition risks in a standard format.
The CRREM tool offers some proactive steps to mitigate the transition risks within real estate portfolios. Reducing the carbon footprint of properties will ensure those assets remain desirable in the future. New construction and existing buildings may require different sustainability strategies. However, on the path to net-zero, real estate investors must consider both types of assets.
New construction
More new buildings are incorporating on-site power generation.
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As world population continues to grow and urbanize, the globe is experiencing an unprecedented building boom. Based on current estimates, the rate of global building stock growth is equivalent to adding a new New York City every month for the next four decades. Choices about the types of buildings built and the materials used to construct them will have major implications of the real estate sector’s future carbon footprint. The first question before undertaking new construction should be to determine whether existing structures can be renovated or adaptively reused. Renovation and reuse can greatly reduce costs and demand on carbon-intensive materials. Where new construction is necessary, considerations around building design and location can impact both the materials required and future energy needs. New buildings should be constructed to the highest energy efficiency standards and with the aim of producing net-zero emissions. The materials used in the construction have a large impact on sustainability as well. Construction should promote resource efficiency by reducing waste, reusing materials, and selecting recycled products (e.g., scrap-based steel production creates far fewer emissions than new steel) and those produced using low-carbon methods. The inclusion of sustainably-sourced organic materials, such as wood, can sequester carbon in the structure, boosting its climate benefits.
Existing buildings
Retrofits are an important way to reduce the carbon footprint of existing buildings.
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Approximately two-thirds of the global building area today will still be around in 2040. While net-zero aligned construction is an important component of sustainability, emissions reduction strategies must incorporate existing buildings too. Retrofits to boost energy efficiency can lower future energy bills, meet rising efficiency standards, and improve property desirability. Three areas of particular focus for retrofits include heating, ventilation, and air conditioning systems (HVAC), lighting (which can represent up to 40% of a commercial property’s energy consumption), and water use. Closely related to the retrofitting of these important operational systems is electrification. A significant contributor to building emissions can be heating oil or gas. Shifting away from these fossil fuels and towards the use of electric heat pumps can meaningfully reduce a property’s carbon footprint. However, a vital consideration is how the electricity is produced. Electricity must come from low-carbon sources and property owners should commit to purchasing an increasing share of their electricity from clean sources going forward. Many buildings may also be suitable for on-site electricity generation, such as the installation of rooftop solar panels (and even wind turbines), which can both shrink carbon footprints and energy bills.
In real estate markets around the world, astute investors are exploring the implications of climate change on their portfolios. Their plans should consider both the resiliency of properties to climate-related damages and preparedness for a net-zero future. Those that effectively manage both these considerations will be well-positioned to profit in the years ahead.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
