News: Bidding Wars to Rent & Build More Houses to Combat Soaring Prices
- Shael Soberano
- Jul 13, 2021
- 3 min read
Updated: Jan 12, 2022
In this week's Industry News (Week of 12 Jul 2021).
Bidding wars to rent a house? In Ontario, tenants and agents say it's a new reality | CBC
While the price to rent a condo in some major cities may have gone down during the pandemic, high sales prices in the housing market appear to be having a ripple effect on single-family rental homes in Ontario.
"I've never seen it like this before," said Sue Heddle, a real estate agent with nearly 15 years of experience in the Greater Toronto Area cities of Mississauga, Oakville and Burlington. Heddle said she is routinely seeing tenants go above a rental's list price, as well as offer months of advance payments. One of her clients recently listed a house that rented for $700 more a month than what was posted. "Every run-of-the-mill place has a bidding war," she said.
Demographic and social preference trends continue to bolster increased demand for quality rental housing solutions for Canadian families. Unfortunately, the supply of such rental solutions is scarce. Konfidis, a real estate investment company is proud to support increased supply of professional and long-term rental housing for Canadian families. Further Konfidis and its partners seek to provide tenants with security of tenure, removing constant fear of eviction from mom-and-pop landlords.
Best way to fight soaring real estate prices is to build more houses, CMHC says | The Globe and Mail
In some of her first public comments since taking the helm as CEO of Canada Mortgage and Housing Corp. in April, Romy Bowers says the best way to combat soaring home prices is to build more housing. “I am very supportive of actions that can be taken by all levels of government to ensure there is a robust supply response to demand,” she said. “I look forward to doing further work on that, to really think about how we can really accelerate the increase in supply in urban centres particularly, but all across the country.” Ms. Bowers said there is “no silver bullet” to quickly adding supply. But she said there are lots of barriers to development at the local level, such as zoning issues and nimbyism, or not in my backyard, from homeowners resistant to denser neighbourhoods.
We talk a fair bit about supply at demand at Konfidis and have pointed to the lack of new supply as the primary driver for housing unaffordability; we are pleased to see the new CEO of CMHC share that view. Further, it is imperative that we provide alternative and quality rental solutions for Canadian families. “It really makes me feel that we need to double down on some of the things that we have been working on – our focus on supply, our focus on rental, our focus on creating more dense neighbourhoods in our cities,” Ms. Bowers said, referring to CMHC’s programs to repair rental units and build new rental housing.
Real estate platform Casafari raises $15M to allow PE to buy single-family homes at scale | Tech Crunch
Casafari, a real estate data platform in Europe, has raised a $15 million Series A funding round led by Prudence Holdings in New York. But, crucially, it has also secured a $120 million “mandate” from Geneva-based private equity investors Stoneweg, among other PE players, in order to buy-to-let residential and commercial real estate. The startup already has operations in Portugal, Spain, France and Italy.
We at Konfidis are pleased to see continued expansion of global technology leading the evolution for alternative and rental housing solutions. The Konfidis team is comprised of dedicated investing and technology professionals with the mission to enable investor access to strong risk-adjusted returns from the Canadian residential real estate asset class and provide enhanced quality housing alternatives for Canadian families.
Konfidis is pleased to share our weekly real estate investing industry news piece herein. We love connecting with our members. Reach out with your questions to hello@konfidis.com.
Shael Soberano, CFA Konfidis Inc. Chief Investment Officer
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