Quote:
Originally Posted by acottawa
The National Capital Region added 20k bureaucrats between 2017 and 2019.
https://www.canada.ca/en/treasury-bo...al-region.html
Meanwhile, the mini baby boom of the late 80s and early 90s are in their prime rental years.
https://www150.statcan.gc.ca/n1/pub/.../ct006-eng.htm
Both of these factors suggest a temporary surge in demand for rental housing and the demand will probably drop off fairly quickly as the last cohort of millennials start adulting (replaced by the much less populous Generation Z in the rental market) and new hires from the bureaucrat surge start buying homes. |
Regardless, current market conditions suggest healthy demand in the short term, hence why builders are building so much right now (again, 2018 and 2019 both seeing a significant increase in construction starts). I do agree that the longer term trends do not point to this being sustained. If anything this could be why there's so much construction activity now, everyone wants in while it's going good.
If we end up with an oversupply that's not a bad thing; it'll help lower rents back down to sane levels.