Announcing the launch of Homprintl! Canadian Housing Supply Challenges and Opportunities for Real Estate Agents
Navigating Canada’s Housing Shortage:
Canada is grappling with a critical housing supply shortage, driven by record immigration levels and construction rates failing to keep pace. In 2023, Canada welcomed over 500,000 immigrants, a record-high number, while housing starts lagged at approximately 225,000 units annually, well below what is needed to meet demand. The Canada Mortgage and Housing Corporation (CMHC) estimates that Canada requires 5.8 million new homes by 2030 to restore housing affordability.
For real estate agents, this presents a dual landscape of challenges and opportunities:
Opportunities for Market Expertise
Neighbourhood Insights:
With municipalities like Toronto and Vancouver revising zoning policies to support multiplexes, agents can guide clients toward neighborhoods with active developments or planned densification projects.
Example: Toronto’s new multiplex zoning allows up to four units per lot, increasing potential for affordable housing within city limits.
Vancouver’s Missing Middle Housing Initiative aims to support townhouses and low-rise apartments in single-family neighborhoods.
Emerging Markets:
Secondary markets such as Hamilton, Windsor, and Kelowna are experiencing spillover demand as affordability in major cities like Toronto and Vancouver continues to erode.
- In Hamilton, the average home price is approximately $848,000, compared to Toronto’s $1.2 million, making it an attractive option for families and investors.
- Kelowna saw a 22% population growth between 2016 and 2021, reflecting increasing demand for homes in smaller urban centers.
Build Relationships with Developers
Pre-Construction Opportunities:
Partnering with developers offers access to pre-construction projects that can attract clients eager to secure homes in a tight market.
- The pre-construction condo market in Toronto remains strong, with sales of over 12,000 units in Q3 2023, representing a 19% increase year-over-year.
Positioning for New Developments:
Real estate agents can serve as trusted liaisons for buyers by offering exclusive access and insights into upcoming projects, particularly those focused on mid-rise and high-rise apartments catering to urban professionals and new immigrants.
Capitalize on Rising Rental Demand:
Rising rents
Immigration and housing shortages have driven the rental market to unprecedented highs.
- In 2023, the national average rent for a two-bedroom unit increased by 11.6% year-over-year, reaching $2,052 per month.
- Vancouver and Toronto are leading the trend, with rents for one-bedroom apartments exceeding $2,700 per month.
Investor opportunities
Agents can work with investors to identify income properties with strong rental demand, particularly in markets with limited housing supply and high immigrant populations.
- CMHC reports indicate rental vacancy rates are at record lows, with Toronto at 1.6% and Vancouver at 0.9%.
Actionable Tip for Agents:
Leverage tools like CMHC’s housing market reports, local planning documents, and private-sector data analytics to position yourself as a data-driven advisor. For example:
- Use CMHC’s Housing Market Outlook to provide clients with forecasts on housing starts, sales, and pricing trends.
- Stay tuned for Homicity’s analytics tools designed to put you as an  agent in the drivers seat!
- Use Homeprint to stay in contact with your clients beyond the transaction
Staying informed about supply constraints and emerging opportunities enables agents to proactively educate clients, stand out as market authorities, and ultimately navigate this challenging housing landscape more effectively.