Is Canada Becoming A Nation of Renters?
Canada’s housing market is shifting, and fast. Soaring home prices, wild interest rates, and economic uncertainty have pushed homeownership further out of reach for many Canadians. In cities like Toronto, Vancouver, and Montreal, housing costs have far outpaced income growth, leaving renting as the only realistic option for a growing number of individuals and families.
The numbers tell a clear story. According to the 2021 census, renter households grew by 21.5% over the past decade—almost triple the growth rate of homeowners. Today, over 5 million Canadian households rent their homes, accounting for one-third of the housing market.
At Merrett Investments, we see this shift not just as a housing challenge but as a tremendous opportunity to provide much-needed rental supply while creating long-term, sustainable value for our investors. With demand for rentals far outpacing supply, well-managed apartment buildings are more essential than ever—offering quality housing for renters while delivering reliable returns for investors.
So, what’s driving this trend? A few key factors are at play:
Affordability Pressures: Elevated interest rates and inflation have made mortgage payments unmanageable for many.
Immigration and Growth: Canada’s robust immigration policies are adding significant demand, particularly in urban centers.
Lifestyle Shifts: For younger generations, renting offers flexibility, convenience, and mobility that traditional homeownership simply can’t provide.
Yet despite growing demand, the rental market faces significant challenges. Supply hasn’t kept up, pushing vacancy rates to record lows and rents to record highs. According to CMHC’s 2024 Rental Market Report, purpose-built rentals now have a national vacancy rate of just 1.5%, while average rents for two-bedroom units have climbed 8.0% to $1,359. Condominium rentals are even tighter, with a 0.9% vacancy rate and rents averaging $2,049.
For investors, this is where the opportunity lies. Strategically located, well-managed apartment buildings aren’t just income-generating assets—they’re critical infrastructure that address a growing societal need.
At Merrett Investments, we specialize in value-add opportunities: improving and enhancing existing apartment buildings to deliver better living spaces while driving long-term appreciation and consistent returns for our partners.
By taking a thoughtful, hands-on approach, we’re helping meet Canada’s need for quality rental housing while creating lasting value for our investors.
If you’re curious about how you can be part of this opportunity, let’s talk. Book a call today to explore how Merrett Investments can help grow your portfolio while making a meaningful impact.