Due to the importance of age on housing decisions, demographic shifts can have a profound impact on demand for different types of housing. The prime renter demographic is the under-35 age group, commonly recognized as having the highest propensity to rent, being in excess of 50% as of 2016 (Source: CMHC, Statistics Canada). This age group also represents the highest share of renter households by age segment, accounting for 30% of all renters. According to Statistics Canada, this age group is comprised of 2.4 million in 2016 and is expected to grow to 2.7 million by 2026.

A prevailing trend within this demographic is the delaying of major life decisions such as getting married, having children and purchasing a home, while putting greater emphasis on career development. Management believes certain of these delays are the direct result of a competitive employment environment, high home ownership costs, higher levels of student debt and a tighter regulatory environment surrounding mortgage borrowing, all factors which collectively have made home ownership more difficult to achieve.

The above-mentioned factors have also begun to affect other age groups not traditionally considered the prime renter demographic. According to CMHC and Statistics Canada, individuals between the ages of 35 to 64 have on average also started to show an increased interest in rental accommodation, particularly the 35 to 44 year old bracket, which has increased its propensity to rent from 30% in 2011 to 33% in 2016.

Moreover, the rising number of single person households in Canada continues to be a positive trend in favour of the rental market given their propensity to rent, with the number of one-person households at 28.2% of total households as of 2016, a greater than three-fold increase since 1961 (Source: Statistics Canada).

Multi-Residential Rental Market Overview >>

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  Increasing Rental Demand >>
Overall demand for residential rental accommodation has historically been stable and is expected to increase in the future. Strong population growth... More >>

  Favourable Population Growth Outlook >>
According to Statistics Canada, the Canadian population is forecast to increase by 9% from 2016 to 2022, while Ottawa's population is forecast to grow by 7%... More >>

  Demographics and Propensity to Rent >>
Due to the importance of age on housing decisions, demographic shifts can have a profound impact on demand for different types of housing... More >>

  Home Ownership Rates and Declining Affordability >>
Diminishing house affordability across key markets is expected to limit the growth of home buying demand and lead to a greater share of renter households... More >>

  Limited Rental Supply Growth and Declining Vacancy >>
The replacement cost of multi-residential rental buildings is substantially higher than the value for which they can be purchased in the market... More >>

  Strong Average Rental Rate Growth >>
Rental affordability, measured as a percentage of personal income, in each of Toronto, Ottawa, Calgary and Edmonton has broadly remained in line... More >>

  Economic Data and Trends by Region >>
Canadian economic growth has been consistently strong over the past decade, with Canada leading all G7 nations in total GDP growth from 2007 - 2016... More >>

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