The real estate industry is undergoing a digital transformation

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Blockchain technology could have a major effect on the real estate industry, from property purchasing to due diligence to title management. We identify the early adopters and potential impact.

The real estate industry is undergoing a digital transformation.

While historically a “pen and pencil” business — often relying on inefficient and archaic methods for doing business and keeping records — technology has begun to help reshape the expanding global market.

Blockchain technology, especially, is feeding into this transformation (in ways similar to how the emerging tech is disrupting other long-established industries like banking and insurance).

The decentralized-record-keeping technology, which is designed to instill trust in the authenticity of digital transactions, could be used to create efficient solutions for both commercial and residential real estate — from buying property to conducting due diligence to enabling crowd-sourced investments, and more. 

Some big incumbents are already betting on the tech: Real estate giant RE/MAX has entered into several partnerships to explore blockchain use cases, while Hilton Worldwide has begun using a blockchain-based property management system.

In this analysis, we dig into how blockchain technology could transform the real estate industry, and the areas where we’re already seeing its impact.

Table of Contents

• Why blockchain tech could benefit the real estate industry
• Areas of real estate being transformed by blockchain technology
• 1. Property search process
  2. Due Diligence and Financial Evaluation Process
  3. Property management
  4. Title management
  5. Financing and payment systems
  6. Real estate investing
• Challenges
• Conclusion

Why blockchain tech could benefit the real estate industry

Blockchain technology offers a form of shared record-keeping which is designed to be difficult to tamper with. Blockchain technology operates through decentralized peer-to-peer platforms, building resilience against the spread of corrupted information and boosting resistance to fraud.

See our explainer for more on how blockchain technology works. 

Blockchain technology has the potential to address many challenges within the real estate industry, including:

• Improving trust and transparency: Blockchain technology offers a verifiable and censorship-resistant option for sharing information (such as valuation details).
• Reducing siloed databases: Real estate processes would benefit from secure and tamper-resistant shared databases that compile data and documents from various different stakeholders in one place.
• Making transaction processes more efficient: Most real estate transactions are still conducted through wire transfers and require costly verification processes that can take days to complete. Blockchain-based transactions could enable a streamlined process which delivers quickly and reduces costs.
• Limiting the use of intermediaries: Many intermediaries — from brokers to escrow companies — could be rendered obsolete by blockchain-based approaches, as records could be stored, verified, and transferred using blockchain technology. Removing the need for intermediaries could dramatically reduce costs and save time.

Areas of real estate being transformed by blockchain technology

We consider several areas that could benefit from the use of blockchain technology below, from due diligence to financing systems.

Property Search Process

Currently, the most common method that brokers, owners, buyers, and tenants use to store and access property listings are through third-party platforms such as Zillow.

These platforms tend to be subscription-based and can command high fees from users. Moreover, there is a lack of standardized processes and often poor communication between the platforms.

This causes property data to frequently be inaccurate, dated, or incomplete. Further, the data can be fragmented across multiple listing platforms, which introduces inefficiencies.

Blockchain technology can fix these problems by allowing a property listing to exist on a single decentralized database.

With data distributed across a peer-to-peer network, brokers would be able to have more control over their data, as it would be more difficult for it to be interfered with by any third parties. Market participants could access more reliable data at a lower cost.

Imbrex is a real-world example of a blockchain-based property listing platform.

Imbrex’s real estate marketplace is built on the Ethereum blockchain. Buyers, sellers, and other agents can use the platform for free, earning rewards for contributing data and helping to maintain the marketplace.

Data is encrypted and stored on a blockchain, which means Imbrex does not control it and cannot alter it — contributed data is controlled solely by the listing party.

Imbrex is reportedly planning to launch smart contract-enabled transactions using its own cryptocurrency.

Due Diligence and Financial Evaluation Process

Physical paper documents for proof of identity are still the norm today. This approach requires the commitment of significant time and effort for due diligence and financial verification.

This manual verification process also increases the likelihood of errors and can involve multiple third-party service providers. These factors can be costly and slow down the due diligence process.

Using digital identities on the blockchain, this entire process can be taken online in a secure manner — increasing efficiency, lowering costs, enhancing data security, and reducing the chance of manual errors.

For example, a real estate property’s digital identity could consolidate information such as vacancy, tenant profile, financial and legal status, and performance metrics.

A digital blockchain-based solution is currently being developed by Lantmäteriet, the Swedish land authority, in collaboration with blockchain startup ChromaWay, Swedish telecommunications giant Telia Company, and several real estate enterprises.

Its goal is to digitize contracts for sale and property mortgages that are authenticated by blockchain technology.

This solution streamlines the process of transferring property titles while also adding some layers of security. All parties involved in the process, including the buyer, seller, real estate agent, the buyer’s bank, and the land registry, have their own digital identities.

Each can use a single application to securely send and sign official documents using blockchain-verified smart contracts. All actors can view the associated documents and information, with verification of the steps that have taken place during the process.

ChromaWay announced that it had completed a full transaction on the platform in June 2018.

Other organizations around the world are also making blockchain real estate strides. Bank of China Hong Kong (BOCHK), for example, stated in mid-2018 that it processes 85% of real estate appraisals using its own private blockchain.

BOCHK’s General Manager of Information Technology Rocky Cheng Chung-ngam said, “In the past, banks and [real estate] appraisers had to exchange faxes and emails to produce and deliver physical certificates. Now the process can be done on blockchain in seconds.”

Property Management

Property management is highly complex, with many stakeholders involved — including landlords, property managers, tenants, and vendors.

Most properties are currently managed either offline through manual paperwork, or through multiple software programs that generally don’t integrate well with one another.

Through the use of a single decentralized application that uses blockchain-backed smart contracts, the entire property management process, from signing lease agreements to managing cash flow to filing maintenance requests, can be conducted in a secure and transparent manner.

In residential real estate, for example, a landlord and tenant could digitally sign a smart contract agreement that includes information such as rental value, payment frequency, and details of both the tenant and property.

Based on the agreed upon terms, the smart contract could automatically initiate lease payments from the tenant to the landlord, as well as to any contractors that perform periodic maintenance. Upon termination of the lease, the smart contract could also be set to automatically send payment of the security deposit back to the tenant.

One business developing a blockchain-based property management system is Midasium. The company has built a private blockchain to execute smart contracts.

This allows traditional contracts, such as mortgage agreements and tenancy contracts, to be brought onto a blockchain to establish a history of agreements and financial transactions that can be traced and audited. 

All data, except for public information like property location, is confidential and encrypted. The intended goal is a reduction in legal, accounting, and transaction costs, as well as a decreased risk of fraud and corruption.

AQUA is another enterprise that offers a blockchain-based property management system, except its application is specifically for hotel and resort management.

The AQUA PMS application is a blockchain platform designed for inventory management, task management, and maintenance management. The service is seeking to help customers reduce operational costs and response times.

AQUA PMS is currently being used by Hilton Worldwide. 

Copyright 2020 CB Information Services, Inc.

The housing market of Greater Vancouver is projected to witness a modest growth this year

Gerv Tacadena
Canadian Real Estate Wealth

The housing market of Greater Vancouver is projected to witness a modest growth this year after a weak 2019, according to the latest forecast by Royal LePage.

During the fourth quarter of the year, the region showed signs of improvement. The aggregate price of a home in Greater Vancouver decreased by 4.8%, improving from the 5.2% drop recorded during the preceding quarter.

The median price of a standard two-storey home and bungalow in Greater Vancouver declined by 4.7%, while the median value of a condominium unit went down by 3.4%.

The region’s increased sales volume and shrinking inventory are signs pointing to a recovery, said Randy Ryalls, general manager of Royal LePage Sterling Realty.

“We’re likely to see some moderate price growth after last year’s decline in prices. The window of opportunity for buyers to get a deal is closing quickly for most typical buyers. There remain some excellent opportunities in the luxury market,” he said.

Ryalls said the region remains healthy for both buyers and sellers.

“Sellers were able to purchase a new home and then sell their current property in a pretty short window,” he said.

Copyright © 2020 Key Media Pty Ltd

But unchecked corporate trusts remain ‘a vehicle’ for dirty money in B.C., says anti-money-laundering coalition

Graeme Wood
Western Investor

Downtown Vancouver’s financial district is home to thousands of numbered companies and some with hidden ownership believed to be tied to so-called dirty money ? File photo, Rob Kruyt, Business in Vancouver

The B.C. government will be seeking advice from the business community and public at large on the creation of a public registry of corporate beneficial ownership in the province, it announced January 17 it .

Finance Minister Carole James already enacted legislation last May requiring companies to state their beneficial owners in their corporate records, which are only held privately and only accessible by government authorities and relevant regulators.

Now, James is beginning a process to make at least some of that information public, which would align B.C. with a similar nationwide process and one that’s already been enacted this month by 31 European Union nations. Similar proposed legislation – but for a private registry controlled by the U.S. Treasury Department in the U.S. – has seen rare non-partisan support at committee level last year.

In Canada, three anti-corruption and transparency advocacy groups (Canadians for Tax Fairness, Publish What You Pay Canada and Transparency International Canada) have formed a coalition campaign to lobby senior governments, including the BC NDP, for these changes.

Campaign manager Sasha Caldera says a beneficial ownership registry for B.C. companies would be a “game changer” given the widespread concerns of dirty money flowing into the province.

“B.C. has been rocked by money laundering and illicit cash flows linked to crime and the fentanyl trade. At the same time, we’ve seen money laundering play a role in artificially increasing the price of real estate,” said Caldera.

“One problem experts point out is this cash is flowing through anonymous shell companies. Canada has a problem where it is easy to set up an anonymous company and ownership is hidden.”

The registry is a recommendation of the 2019 Expert Panel on Money Laundering in BC Real Estate report Combatting Money Laundering in BC Real Estate.

Transparency International Canada states in its report Opacity: “Beneficial ownership transparency is the single most important tool for fighting money laundering and other financial crime in the real estate sector and beyond.”

Caldera said the public registry could help combat illicit flow of funds, tax evasion and aggressive tax avoidance, which is proven to be a significant problem in Vancouver real estate. The registry will assist authorities with criminal investigations and civil society groups including journalists, said Caldera.

Banks and lawyers may also benefit from such a registry in order to better conduct know-your-client requirements under the Proceeds of Crime and Terrorist Financing Act, stated James in her consultation paper.

But before a public registry is created provincially and perhaps nationally, James wants to consider what may be some unintended consequences – a good thing, said Caldera, who has met with James previously on the subject.

Holding companies, James wrote, “are legitimate and regularly created for normal business purposes.” However, “without beneficial ownership information to complete the picture, it is difficult to distinguish between legitimate business structures.”

Input will consider, among other things: business impacts; efficient collection of data; public access (privacy); scope; and the role of government.

James noted that under the Land Owner Transparency Act, “which will establish a public registry of beneficial owners of land in B.C., the collected information has been divided into public information and information that is not publicly available.”

For instance, the public can see the full name and residency status of the beneficial owner but not other things available to law enforcement such as: how the ownership structure is held, social insurance number, last known address and tax status.

“Government is aware that public searchability of the registry means personal information will be displayed publicly,” James said.

“Advocates of full searchability of the database argue that full access deputizes every member of the public to act as verifiers of the information. If inconsistencies are found, they can be pointed out to the government for further follow-up.”

B.C. has already mandated beneficial owners of 25 per cent or more of a company be disclosed. The initial intention of the public registry is to maintain this level, said James in a statement. This is a much higher threshold than the 10 per cent threshold required by public registries in European countries and the 10 per cent threshold for public companies reporting major shareholders via SEDI. The expert panel recommended 10 per cent as well.

One significant issue acknowledged by Caldera may be the verification process. What is to stop someone from lying?

“Generally, to ensure the information in a government-maintained registry is accurate, government can take a reactive approach, a proactive approach or a mixture of the two,” stated James.

“The reactive approach refers to situations where the government only takes steps to verify the information about beneficial owners when alerted by another party,” whereas “the proactive approach would involve government enforcement officers monitoring the information in the government-maintained registry for suspicious entries.”

The public and businesses may weigh in on such a matter via the consultation process.

Currently, under the Business Corporations Act, authorities may seek a compliance order. Administrative penalties and charges may be other options in cases of non-compliance.

Then there remains the question of trusts.

“Other legal entities, notably partnerships and trusts, are also susceptible to being used for money laundering purposes,” stated James.

The proposed public registry will not include exposing the beneficial owners of trusts, although B.C.’s planned beneficial property owner registry will in cases where property is held in trusts. As such, James is asking businesses and the public about a future register of trusts for those not holding property assets.

“Trusts will be the next upcoming frontier and it’s already in discussion,” said Caldera.

“It’s important to have smart conversations on this before going ahead with policy. It’s a lot for Canada as a regime to catch up. So nailing trusts, private companies and lowering the threshold, verification methods and so on – it’s a lot. In the last two years things have moved by leaps and bounds. In early 2017, people were denying this was an issue.”

Copyright © Western Investor

Coquitlam council holds it’s next public hearing on Jan. 27

Gary McKenna
other

Coquitlam residents will have an opportunity to voice their opinions on a 96-unit apartment building proposed for Edgar Avenue during a public hearing Jan. 27.

 If council approves the project, it would consist of two five-storey buildings on land currently occupied by six houses. According to a city staff report, the development is located in the Evergreen Extension shoulder area, approximately 1,200 m from the Lougheed Town Centre Station.

“The proposed development is consistent with the policies in the Burquitlam-Lougheed Neighbourhood Plan,” said the document. “The proposed design contributes to an engaging public realm along Edgar Avenue and Allison Street.”

 If the project goes forward, it would mean $1.2 million in development cost charges and $227,000 in voluntary community amenity contributions.

The Edgar Avenue project is not the only development being discussed at next week’s public hearing.

Residents can also weigh in on plans to build a one-storey commercial building in the northeast corner of the Como Lake Village Shopping Centre. The project also consists of a parking lot with driveway access.

The third item on the public hearing agenda involves a Victoria Drive property being subdivided to accommodate two lots with two new detached homes each with a secondary suite.

Glacier Community Media © Copyright ® 2020

Avison Young predicted flexible offices will remain

Ephraim Vecina
Mortgage Broker News

For Canadian office workers, the future still appears to be the shared floor plan.

Despite WeWork being in crisis mode in Canada for much of the second half of 2019, flexible offices will likely remain one of the commercial sector’s hottest growth areas this year, Avison Young predicted in its newly released 2020 Forecast.

“As a market disruptor, it’s not surprising that WeWork received disproportionate levels of attention for cancelling its public offering,” Avison Young stated. “But we all know its instincts are correct.”

A major driver of this trend is the impact of tech advances, especially in the communications sphere, on the very nature of what it means to work.

“The world is in the early stages of a transformational period as the technological revolution takes over from globalization as the primary driver of business change. For all sorts of reasons, workplace flexibility is at the forefront of occupiers’ minds.”

Employment demographics are also playing a large part in this shift. “The talented individuals that employers want to target are increasingly drawn from the Millennial and Gen Z cohorts. Like it or not, this talent is making new demands for, amongst other things, work/life integration and a more dynamic work environment.”

Moreover, “there is also a growing need for occupiers to flex in and out of space to react to economic cycles, to reconfigure it to drive efficiencies and to remain nimble by adapting space to special projects or assignments.

Avison Young estimated that at present, flexible set-ups represent around 5% of the nation’s office space.

“Within ten years, this is expected to make a transformative leap to 15-30%. That’s because this is no longer just about freelancers and start-ups; this is smart thinking across all businesses. For occupiers and institutional owners, the future is the core-and-flex combo.”

Copyright © 2020 Key Media

Location, value drive interest in Briza

Simon Briault
The Vancouver Sun

Briza is a 65-unit condo and townhouse development planned for central Surrey. There’s lots to recommend it. But the most noteworthy thing,  according to both the developer and some buyers who have already signed up, is the pricing, with homes in the current inventory beginning at well below $300,000.

The company behind the project is a relatively new player on the residential development scene, but Genaris Properties is already getting plenty of things done: single-family homes, townhomes and, with Briza, condos.

“The inspiration for our name comes from sui generis, which is Latin for something that is unique and of its own kind,” said Dharam Dhillon, one of the principals of Genaris Properties. “That’s the approach we take to every single one of our developments.”

Briza is nestled between two SkyTrain stations – Surrey Central and Gateway – so residents will get the benefit of all the local amenities, and be able to tap into everything that Vancouver and the rest of the Lower Mainland has to offer.

“I have some amazing memories from growing up in Surrey,” said Dhillon. “Briza not only gives you access to all these great amenities to build your own memories, but it’s also in an area that’s transitioning and turning into something very special. If you buy into this development and work in Vancouver, you’ll have the convenience of being able to hop on a SkyTrain within walking distance and then you have everything on your doorstep when you get home.”

The website for Briza includes a map that is peppered with locations for dining, banking, recreation and shopping. Central City shopping centre is within walking distance and features 140 stores, restaurants, services, Simon Fraser University campus, and an office tower.

Genaris Properties’ five-storey, wood-frame development will include condos and five townhomes, Most homes at Briza feature outdoor spaces overlooking Surrey City Centre or green space. There is secure underground parking for residents and visitors, nine-foot ceilings in all homes and laminate flooring throughout.

Kitchens feature soft-close cabinetry, elongated chevron pattern backsplashes and engineered quartz countertops. There are undermount single-bowl sinks and black Moen faucets with flexible pull-out spray hoses. The appliance packages – fridge-freezers, ranges, dishwashers and microwaves – are by Blomberg.

Bathrooms feature walls that highlight penny-round tile with contrasting grout colour, custom vanities in a velvet matte finish and undermount porcelain sinks. There are walk-in showers in all ensuites. Other features? Custom mirrors with storage shelves in black and white, dual-flush toilets for smart water consumption and tile flooring in all bathrooms.

“It’s a perfectly sized development in my opinion – not so big that you don’t know your neighbours, but big enough to create a vibrant cultural and family atmosphere,” Dhillon said. “There’s also a great unit mix. We’ve got studios for people who are living on their own and family-sized spaces for people who are downsizing or who have kids going to the local schools.”

The project is scheduled to be completed some time in 2022, but Maria Carlos saw the benefits of getting in early and has bought a studio apartment at Briza.

“The price, the quality and the location were the things I most liked about Briza when I saw it,” she said. “It’s expensive in that neighbourhood, but this place was a very, very good deal. It’s near to where all the action is. There’s a lot of development in the area and I think as it gets built up, Briza will be part of that urban core.”

Carlos is one of many who have shown an interest in Briza, according to Dhillon, who is keen to point out the diversity of the development’s buyer demographic.

“The intention with Briza is not only to make it accessible in terms of lifestyle and location, but also financially,” he said. “We wanted to make sure that nobody is priced out. We’ve had a lot of folks from the area and that’s been really encouraging for us. We’ve put our heart and soul into this project and it’s nice that it resonates with people who already live in the neighbourhood.”

“There have also been people from South Surrey who realize that there’s nothing better than being a stone’s throw from the SkyTrain station,” Dhillon added. “They work in Vancouver and this location gives them an extra half hour in their day and you can’t put a price on time.”

There is no sales centre for Briza, but potential buyers can contact the developers by phone or online.

“It’s not going to cost you an arm and a leg to live here and you’re not going to be putting your entire paycheque towards a mortgage,” said Dhillon. “This development is for everyone and so is the price.”

Briza

Project location: 10616 — 132nd St., Surrey

Project size: Briza is a five-storey, wood frame condo development (including five townhouses). Homes in current inventory range from 421 to 1,243 square feet and priced from $270,900

Developer: Genaris Properties

Architect: Creekside Architects

Interior designer: BAM Interiors

Sales phone: 604-721-5460

Website: http://www.brizasurrey.com

© 2020 Postmedia Network Inc.

Sold (Bought): Coal Harbour home takes in stunning outlooks

Nicola Way
The Vancouver Sun

303 – 1680 Bayshore Drive, Vancouver

Type: Two-bedroom, two-bathroom apartment

Size: 1,132 sq. ft.

B.C. Assessment: $1,318,000

Listed for: $1,645,000

Sold for: $1,542,000

Sold on: Nov. 24

Days on market in this listing: 48

Listing agent: Holly Wood at Sotheby’s International Realty Canada

Buyers agent: Les Twarog at ReMax Crest Realty

The big sell: The Bayshore Gardens development in downtown Vancouver’s Coal Harbour neighbourhood comprises seven luxury highrise condominium towers on Bayshore Drive. This home is in one of these: Bayshore Towers, with 90 strata units that were constructed in 2002. The corner-unit home features northwesterly vistas of the water, marina, Stanley Park and mountains and an interior with two 13-foot-long bedrooms, a walk-in closet off the master, two full bathrooms and a flex room. There are overheight ceilings, a view balcony, air conditioning, a gas fireplace and cooktop, and new carpets and paintwork. Amenities include 24-hour concierge, a fitness centre and sauna. This property has a monthly maintenance fee of $828.84 and pets and rentals are permitted.

© 2020 Postmedia Network Inc.

New data from CREA shows a 0.9% drop in sales nationally

Steve Randall
Mortgage Broker News

There was a split among major Canadian housing markets in December according to new data from the Canadian Real Estate Association (CREA).

The stats show that sales were down 0.9% nationwide compared to November, following a wave of gains since March while, actual (not seasonal) activity gained 22.7% year-over-year and was up 18% from the 6-year-low of February 2019.

There was increased activity in around half of Canadian markets including BC’s Lower Mainland, Calgary, and Montreal, while the rest saw declines including the GTA and Ottawa. Year-over-year though, all major urban centres gained.

Meanwhile, the Aggregate Composite MLS® Home Price Index (MLS® HPI) rose 0.8%, its seventh consecutive monthly gain taking it to 4.7% above 2019’s lowest point reached in May.

“The momentum for home price gains picked up as last year came to a close,” said Gregory Klump, CREA’s Chief Economist. “If the recent past is prelude, then price trends in British Columbia, the GTA, Ottawa and Montreal look set to lift the national result this year, despite the continuation of a weak pricing environment among housing markets across the Prairie region.”

Compared to a year earlier, price declines were focused in the Lower Mainland and major Prairie markets with gains in central and eastern Canada.

Supply issues
New listings are failing to keep up with sales and declined 1.8% in December and the national sales-to-new listings ratio tightened to 66.9%, the highest reading in more than 15 years.

Based on a comparison of the sales-to-new listings ratio with the long-term average, just over half of all local markets were in balanced market territory in December including Greater Vancouver (GVA) but not the GTA, where market balance favours sellers in purchase negotiations.

Inventory-challenged markets are increasing although the GTA and Ottawa accounted for the largest share of the decline in new listings in December.

There were 4.2 months of inventory on a national basis at the end of December 2019 – the lowest level recorded since the summer of 2007.

Copyright © 2020 Key Media

The national vacancy rate for rental apartment units declined in 2019

Kimberly Greene
Mortgage Broker News

The national vacancy rate for rental apartment units declined in 2019 for a third consecutive year to 2.2%, its lowest level since 2002, according to the latest Rental Market Survey report from Canada Mortgage and Housing Corporation (CMHC).

“The national vacancy rate for purpose-built rental apartments declined for a third consecutive year in 2019, as strong rental demand continued to outpace growth in supply,” said Bob Dugan, CMHC’s chief economist. “Low vacancy rates in major centres underscore the need for increased rental supply to ensure access to affordable housing.”

The Montreal Census Metropolitan Area (CMA) reached a 15-year low of 1.5%, driving the decline. Demand remains elevated in Vancouver and Toronto, where the vacancy rates are 1.1% and 1.5%, respectively. Halifax also saw a decline to 1.0%. Vacancy rates in most other CMAs remained stable, including the major prairie markets of Calgary (3.9%), Regina (7.8%), and Winnipeg (3.1%). The national vacancy rate in 2018 was 2.4% for purpose-build rental units.

Even though the overall vacancy rate in Toronto is 1.5%, that is up from the 2018 levels of 1.2%. Despite the increase, high homeownership costs coupled with tightened mortgage regulations have encouraged individuals in the GTA to continue to seek or remain in rental housing.

“House prices continue to recover following unprecedented levels back in 2017, but remain elevated relative to previous years. Furthermore, prices of multiple-family dwellings (such as condominium apartments and townhouses), which are typically more popular among first-time homebuyers, have showed stronger price growth than other housing types over the past 12 months, thus pushing demand towards the rental market,” the report reads.

Rental apartment starts and completions have increased over the past five years in the GTA, but continue to lag that of condominium apartments. Conversions and units that have been added back into the “rental universe” after renovations have heled the total purpose-built market to increase by nearly 1% in 2019. The Halton Region has recorded the highest growth (4%) with about 590 units being.

“Strong transportation . . . [that] provides easy access to downtown Toronto has made this region an attractive market for young renters,” the report reads.

Nationally, tighter rental markets were accompanied by strong rent growth, with average rents increasing by 3.9% for a two-bedroom apartment between October 2018 and October 2019. This is the fastest pace of same-sample rent growth since October 2001. The average two-bedroom apartment rent was highest in Vancouver ($1,748) and Toronto ($1,562), Calgary ($1,305) and Halifax ($1,202) also remained above the national average, while Montreal ($855) “continued to exemplify the relatively lower rent levels” generally seen in Quebec.

For comparison, the average scheduled monthly payment for new mortgage loans was $1,936 in Vancouver, $1,826 in Toronto, $1,531 in Calgary, $1,133 in Halifax, and $ 1,098 in Montreal, based on Q4 2016 data from CMHC.

Demand for rental apartments last year also continued to be influenced by a probable decrease in the movement to homeownership among Montreal households aged under 35. While the proportion of renters within this group of households had shown a steady decrease between 2001 and 2011, the data from the 2016 Census indicate that this proportion increased. This situation has apparently continued since then, given the pronounced rise in house prices on the Montreal market in recent years.

Copyright © 2020 Key Media