News: Canadians Getting Creative For Chances at Home Ownership

In this week's Industry News (Week of 2 Aug 2021).

Canadians are finding ways around high housing prices. Are they workable solutions? | The Province Even with housing experts like the Canadian Real Estate Association saying the nation’s housing market is “moderating” after two consecutive months of sales [volume] declines, a realistic scenario where home prices either stall or fall is hard to imagine. A recent Re/Max survey finds that Canadian homeowners are considering non-traditional strategies for increasing their chances of owning a home. All three are feasible, but each comes with its share of friction and uncertainty. The survey portion of Re/Max’s recent 2021 Housing Affordability Report, based on an online poll of 1,539 Canadians, found homebuyers face a growing number of challenges affording houses of their own. A combination of necessity, desperation and ingenuity inspired 33 per cent of those surveyed to look for alternative means of securing a property. A sizable percentage (21 per cent) have explored the idea of renting part of their primary residence, while 13 per cent are considering pooling their finances with friends or family, and another 7 per cent are thinking about living with neighbours in a co-op or shared-living arrangement. It is not surprising that Canadians are getting creative given the reality around home ownership unaffordability. In addition to the various strategies to increase your ability to own a home (as outlined in this article), many Canadians are starting to consider rental alternatives. Konfidis and its partners are proud to support affordable and flexible housing solutions for Canadian families and provide tenants with a high-quality and long-term housing alternative. We are confident that as these high-quality rental opportunities (which are currently quite scare) surface, rental solutions in larger format housing will become a mainstream alternative. Full press release available here.

Toronto region new condo sales reach near-record levels during 2021’s second quarter | Livabl Greater Toronto’s new construction market just posted its third-highest quarterly sales total on record, an indication that the market has recovered from the challenges of the COVID-19 pandemic. In its Q2-2021 Condominium Market Survey, Urbanation reported that 9,001 new condominium apartment sales took place in the Greater Toronto Area between April 1st and June 30th. This marks the third-highest quarterly total on the books, the real estate consulting firm noted in its survey results. Although available condo unit supply remains tight, new construction activity ramped up in Q2-2021. The number of new condos under construction within the GTA increased by 11 percent year-over-year to a record-high last quarter. At Konfidis, we focus on the fundamentals of various residential real estate sectors. When analyzing the fundamental supply and demand picture in Canada, the lack of new supply, coupled with such limited new construction being focused on urban high-rise as highlighted by this article (a mismatch with the increasing demand for larger format housing), bolsters the thesis for continued single-family home price appreciation over the long-term. Full article available here.

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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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