Canada’s economy and real estate market is expected to rebound in 2022 from early pandemic sluggishness shaken off through 2021, a real estate management company said in its annual forecast.
“Multi-suite residential rental and industrial properties are anticipated to continue outperforming when compared to office and retail assets,” said Keith Reading, research director at Morguard Corporation. “As the economic picture improves in 2022, investors will broaden their investment horizons in 2022 by looking to increasingly acquire office and retail assets.”
Investment performance remained strong in 2021 for industrial and multi-suite residential rental properties, while office and retail showed signs of stabilization due to efforts to reduce COVID-19’s spread and the subsequent easing of some restrictions, according to Morguard’s 2022 Canadian Economic Outlook and Market Fundamentals Report.
First and foremost, the real estate sector is dependant on how the economy rebounds, a situation further depending on what happens with the pandemic. And that’s an unknown given current spikes in infections, although vaccination rates continue to rise, with 81 percent of the population receiving at least one vaccine dose as of Dec. 11, according to the Public Health Agency of Canada.
Morguard said the economy is expected to continue to bounce back from the pandemic-driven correction in 2022, with output rising between 4-5 percent on an annualized basis.
The report predicted the services sector as a critical driver of growth in the coming year, following proportionately stronger expansion in the goods production sector in the earlier stages of the pandemic.
It further predicts Canada’s labour market will strengthen in 2022. This is due to the fact that by the fall of 2021, the unprecedented job losses due to the pandemic had been recouped, which drove the national unemployment rate down closer to the pre-pandemic level.
Effects on real estate
The national residential vacancy rate rose 1 percent year-over-year in October 2021 to a four-year high of 3.2 percent, with more pronounced vacancies in large cities. With the reopening of Canada’s borders and continued job growth, rental demand is forecast to gradually grow in 2022 and remain a preferred target for investors.
Decreased levels of immigration and post-secondary students due to border closures entering the country throughout 2021 contributed to reduced demand in the multi-suite residential segment.
In the commercial real estate sector, investment activity in the office segment in 2021 was relatively muted given the uncertainty of when pandemic restrictions would lift.
A total of $1.9 billion in office property sales was reported in the first half of 2021, down 37 percent year-over-year from $3.0 billion reported in the same period in 2020.
In 2022, most office-space tenants are expected to have employees return, putting tenants in a position to make decisions on longer-term leasing needs. If that happens the report predicted, activity levels and market conditions could stabilize leading to increased investor confidence will increase.
For the first half of 2021, Vancouver saw the lowest office vacancy rate level of major cities at 6.9 percent.
Industrial property
Industrial assets had record-low inventory levels across Canada in 2021. The national industrial availability rate reported a low of 2.3 percent at 2021’s mid-year mark. Availability rates of 1.1, 1.2 and 1.4 percent were reported at the midway mark of 2021 for Vancouver, Toronto and Montreal, respectively.
The situation was different in the warehouse, logistics and e-commerce sectors that saw businesses continue expanding at a relatively rapid rate, continuing the trend seen since mid-2020.
Leasing demand in those areas continues to outpace supply, creating a situation where tenants may have difficulty finding available industrial space in 2022 despite an anticipated pickup in construction activity.
Restrictions and retail
COVID restrictions impacting in-person shopping led to reduced activity in the retail sector in 2021.
The report said short-term lease renewals and government aid supported Canadian retail operations through the year but extended lockdowns contributed to declines in landlord and retailer revenues, and, in some cases, forced independent businesses to close
However, the report forecast, retail sector performance patterns are expected to improve in 2022, with the loosening of pandemic restrictions and the return of shoppers to retail centres.
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.
