New data reveals dramatic shifts in the apartment
market
TORONTO, July 18,
2024 /CNW/ -- Yardi® Canada has released its latest 2024
multifamily report, analyzing aggregated and anonymized client data
from 476,000 units across 5,400 Canadian properties.
The report provides a detailed overview of the Q2 2024 apartment
performance, revealing a slight cooling in the market despite
sustained high housing demand relative to supply. Key metrics like
rent growth and vacancy rates have moderated from recent peaks but
remain strong by historical standards.
Amid this backdrop, Canada's
economic growth remains modest, with GDP rising at a 1.7 percent
annual rate in the first quarter, according to Statistics Canada.
The unemployment rate stands at 6.4 percent as of June, with
notable differences among age groups.
Key findings from the report include:
- New builds: Canada
delivered over 110,000 apartments in 2023, but this isn't enough to
meet the growing housing demand, highlighting a need for more
construction efforts.
- Rent growth: The average national in-place annual rent
growth rate declined to 6.3 percent, primarily due to limited
housing supply and rising population growth.
- Relocation challenges: The average national vacancy rate
hit to three percent, the highest since Q2 2022. Renters are
staying put due to the high cost of living, making moving less
affordable.
"Canada's apartment market is
demonstrating signs of cooling, but remains fundamentally strong,"
said Peter Altobelli, vice president
and general manager of Yardi Canada Ltd. "While rent growth has
begun to decelerate from its peak, it persists at a robust level
due to ongoing supply constraints. The disparity between housing
demand and available units continues to be a significant factor
shaping the rental landscape."
For more detailed insights, download the full report here.
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops
industry-leading software for all types and sizes of real estate
companies across the world. With over 9,000 employees, Yardi is
working with our clients to drive significant innovation in the
real estate industry. For more information on how Yardi is
Energized for Tomorrow, visit yardi.com.
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SOURCE Yardi