The case for Canadian Real Estate

[Cody Neustaedter]

I wanted to highlight some information that I think goes against what a lot of Canadian news outlets are portraying. I want to be upfront that this in no way is a prediction for what prices are going to be like a month from now, or 3 months from now, but I still think the long term outlook for Canadian real estate, specifically in multi-family space, will continue to appreciate significantly over the next few years. 

Canada has the lowest number of homes per 1000 people among G7 countries. Coming in at 424 homes per 1000 people. Meanwhile, Canada has committed to taking in roughly 500,000 immigrants per year from now until 2025 (1.5 million total). The issue of supply in Canada is going to remain for a long period and while this may be unfortunate for the first time home buyer, it is very beneficial for multi-family investors who are going to provide affordable housing to our increasing population. The inventory problem in Canada is going to get worse. This will cause rents and appreciation to continue to grow.

Feel free to interpret the information differently but I just wanted to share some positivity in what seems like a doom and gloom market right now.