Winnipeg Construction X

[Atrial78]

Thanks for that explanation. It is interesting that the reported average 1/2br rent prices are higher on rentals.ca than zumper despite having more listings. I wonder if the RTB maintains data about the average rental price from all listings in Winnipeg, or if that's even feasible.

[optimusREIM]

Originally Posted by OTA in Winnipeg

A lot are getting their increases anyway. RTB seems to have just ignored the legislation and allowed them above 0%. My building just got their 7%+ that they requested. Makes one wonder what the point was of the legislation.

I’ll just say that a landlord asking for an above guidelines increase has to meet a pretty high threshold. RTB tends to favour the tenant generally speaking, so I’m surprised to hear people are getting them so readily. To me it signals that things are pretty dire for some landlords. They don’t just give them out.

[OTA in Winnipeg]

Originally Posted by optimusREIM

I’ll just say that a landlord asking for an above guidelines increase has to meet a pretty high threshold. RTB tends to favour the tenant generally speaking, so I’m surprised to hear people are getting them so readily. To me it signals that things are pretty dire for some landlords. They don’t just give them out.

Landlord is WRE. They don't seem like they're suffering.

[pegster]

Originally Posted by optimusREIM

I’ll just say that a landlord asking for an above guidelines increase has to meet a pretty high threshold. RTB tends to favour the tenant generally speaking, so I’m surprised to hear people are getting them so readily. To me it signals that things are pretty dire for some landlords. They don’t just give them out.

My landlord is asking for over 12% this year. We'll see if RTB allows it, I gave them my thoughts, but it doesn't leave me feeling particularly sympathetic.

[WildCake]

Originally Posted by optimusREIM

I’ll just say that a landlord asking for an above guidelines increase has to meet a pretty high threshold. RTB tends to favour the tenant generally speaking, so I’m surprised to hear people are getting them so readily. To me it signals that things are pretty dire for some landlords. They don’t just give them out.

My previous landlord got a 12 or 14% increase after painting the building halls and hanging cheap art in the building entrance. In the application there was also the mention that they repaved the parking lot of the adjacent building, and the promise of repaving the parking lot of the building I was living in that upcoming spring, but never happened.

So in my case there wasn't much done and they got to raise rents well above the guidelines.

[EdwardTH]

RTB follows a formula based on how much a landlord's operating costs have increased. The number they get is what the formula spits out, they don't get subjective with it. And it's very possible to get a large increase without doing much work, or at least work that is visible to any individual tenant. Things like utilities or snow clearing costs going up can get them an increase. Or maybe another unit needed a bunch of plumbing work you're not aware of, that counts towards the total costs for the building.

Not defending it, that's just how the system works. RTB does do a really poor job of explaining this to tenants. Tenants always send appeals that are just "I can't afford it"... well, RTB doesn't care. If the landlord sent in the ledgers and invoices showing their costs are up 15%, they're getting an increase.

[Winnipegger]

Originally Posted by Atrial78

https://www.zumper.com/blog/rental-price-data-canada/

I was reading the latest Zumper rent report that stated Winnipeg rents increased by 19.30% for a 1 bedroom and 18.60% for a 2 bedroom year-over-year respectively. I understand there are higher interest rates and labor shortages. However, given these increases shouldn't construction be going gangbusters? The situation just appears so unsustainable for renters.

The latest data from the CMHC shows that Winnipeg's overall apartment vacancy rate went from 2.7% in October 2022 to 1.8% in October 2023. Average rents went up by about 5.5% over the same time period, from $1,348 to $1,423 on two-bedroom apartments.

In the geography the CMCH considers to be "downtown Winnipeg", vacancy went from 5.0% to 3.6% as of October 2023. Average rents for 2 bedrooms were $1,396 which is only 1.9% increase.

My understanding is that zoning laws within downtown Winnipeg (as defined by the downtown by-law) are pretty lax - you could get away with most residential development. TIFs are also quite easy to come by with the right proposal. I suspect the overall perception of downtown is what is hindering strong growth in multi-family downtown. People are less willing to pay high rents to live downtown due to crime, safety, cleanliness, and lack of amenities and these lower rents combined with higher land costs are likely preventing significant new builds.

We need municipal and provincial commitments to make downtown more attractive so demand can push up rent, making new development in the current environment more attractive. I'm not talking about refreshing a park or building a bike lane, I'm talking about subsidizing a full-service grocery store in a central location, enhancing beautification efforts to keep the area clean, adding safety guarantees of some sort (e.g., if you build in this area, police service promises to have a constant presence 24/7 or something like that), and substantial (read: costly) efforts to address social issues in north-end neighborhoods that border downtown.

Getting suburban employees back into offices won't fix anything. Adding more bike lanes won't help. Concentrating social housing in downtown won't help. What is missing is post-secondary students, middle and high income urban households wanting to live in or around downtown. You won't get that until you make it safe, pleasant, and offer a quality of life that is somewhat comparable to River Heights or River Park South.

[ColdRain&Snow]

Originally Posted by Winnipegger

The latest data from the CMHC shows that Winnipeg's overall apartment vacancy rate went from 2.7% in October 2022 to 1.8% in October 2023. Average rents went up by about 5.5% over the same time period, from $1,348 to $1,423 on two-bedroom apartments.

In the geography the CMCH considers to be "downtown Winnipeg", vacancy went from 5.0% to 3.6% as of October 2023. Average rents for 2 bedrooms were $1,396 which is only 1.9% increase.

My understanding is that zoning laws within downtown Winnipeg (as defined by the downtown by-law) are pretty lax - you could get away with most residential development. TIFs are also quite easy to come by with the right proposal. I suspect the overall perception of downtown is what is hindering strong growth in multi-family downtown. People are less willing to pay high rents to live downtown due to crime, safety, cleanliness, and lack of amenities and these lower rents combined with higher land costs are likely preventing significant new builds.

We need municipal and provincial commitments to make downtown more attractive so demand can push up rent, making new development in the current environment more attractive. I'm not talking about refreshing a park or building a bike lane, I'm talking about subsidizing a full-service grocery store in a central location, enhancing beautification efforts to keep the area clean, adding safety guarantees of some sort (e.g., if you build in this area, police service promises to have a constant presence 24/7 or something like that), and substantial (read: costly) efforts to address social issues in north-end neighborhoods that border downtown.

Getting suburban employees back into offices won't fix anything. Adding more bike lanes won't help. Concentrating social housing in downtown won't help. What is missing is post-secondary students, middle and high income urban households wanting to live in or around downtown. You won't get that until you make it safe, pleasant, and offer a quality of life that is somewhat comparable to River Heights or River Park South.

This is some very interesting data, thanks for sharing. Do you have a link for where you found it?

[Winnipegger]

Originally Posted by ColdRain&Snow

This is some very interesting data, thanks for sharing. Do you have a link for where you found it?

Yep, here you go. You can find it for various geographies across Canada on the CMHC's data portal: https://www03.cmhc-schl.gc.ca/hmip-pimh/en#TableMapChart/4611040/4/Winnipeg%20(CY)%20(Manitoba)

[OTA in Winnipeg]

Originally Posted by EdwardTH

RTB follows a formula based on how much a landlord's operating costs have increased. The number they get is what the formula spits out, they don't get subjective with it. And it's very possible to get a large increase without doing much work, or at least work that is visible to any individual tenant. Things like utilities or snow clearing costs going up can get them an increase. Or maybe another unit needed a bunch of plumbing work you're not aware of, that counts towards the total costs for the building.

Not defending it, that's just how the system works. RTB does do a really poor job of explaining this to tenants. Tenants always send appeals that are just "I can't afford it"... well, RTB doesn't care. If the landlord sent in the ledgers and invoices showing their costs are up 15%, they're getting an increase.

Why are those costs not just tax write offs?

[ColdRain&Snow]

Originally Posted by Winnipegger

Yep, here you go. You can find it for various geographies across Canada on the CMHC's data portal: https://www03.cmhc-schl.gc.ca/hmip-pimh/en#TableMapChart/4611040/4/Winnipeg%20(CY)%20(Manitoba)

Wow, this is some great data! Thanks again for sharing.

[zalf]

[WinCitySparky]

Wow that one snuck by. Is that the dental one?

[FactaNV]

Originally Posted by WinCitySparky

Wow that one snuck by. Is that the dental one?

Awesome! A great addition down there. Lots of students who bring lots of drinking and food money to the Exchange!

[Arcticwolf]

Yes, it's the new U of M, dentistary.

[pegster]

Originally Posted by FactaNV

Awesome! A great addition down there. Lots of students who bring lots of drinking and food money to the Exchange!

It's definitely good, but isn't this on the far west side of HSC? It's almost a mile from the Exchange, and the existing student population at the UofM Bannatyne Campus hasn't really been much of a boon for the surrounding area.

[FactaNV]

Originally Posted by pegster

It's definitely good, but isn't this on the far west side of HSC? It's almost a mile from the Exchange, and the existing student population at the UofM Bannatyne Campus hasn't really been much of a boon for the surrounding area.

Ah - I saw Bannatyne and thought exchange. Good point

[Atrial78]

It does bring up a point though - students and hospital workers could help revitalize the area. Notre Dame Ave and Sherbrooke in those areas could use some mixed use buildings and perhaps UManitoba could build a student residence there.

[pegster]

Originally Posted by Atrial78

It does bring up a point though - students and hospital workers could help revitalize the area. Notre Dame Ave and Sherbrooke in those areas could use some mixed use buildings and perhaps UManitoba could build a student residence there.

I think it's the same chicken-and-egg problem with all of the core areas. There is crime, blight, etc, and judging by recent statements from the nursing union, they are all terrified to walk to their cars at night. This scares off the one thing that would really benefit the area, more people.

[FactaNV]

Originally Posted by pegster

I think it's the same chicken-and-egg problem with all of the core areas. There is crime, blight, etc, and judging by recent statements from the nursing union, they are all terrified to walk to their cars at night. This scares off the one thing that would really benefit the area, more people.

Such a gargantuan task. How does one clean up North Spence/Notre Dame? A good start would be harm reduction in tandem with a reign of terror against dealers and gang leadership, but then the vacuums open. What can be done that doesn't take 100 years of fixing?