Category Archives: Market Research

Rent Gaps, Part I

      No Comments on Rent Gaps, Part I

In a previous post (dated August 4, 2021) I examined the contribution to rent revenues that 1B and 2B purpose-built rental units make and found that 0B and 1B units contribute a lower percentage to estimated total average rent revenues than their percentage of rental supply. In this post I’m going to take a look at the “gap” between average… Read more »

Rent Revenue Contributions by Unit Type

      No Comments on Rent Revenue Contributions by Unit Type

Data shows that 1B and 2B rental units are by far the most plentiful unit types, together making up over 80% of all purpose-built rental units in southern Ontario’s 59 largest cities and towns. This means they contribute the bulk of rent revenues. However, 1B and 2B rents are often quite different, and the different quantities of each unit type… Read more »

To Rent or Not To Rent

      No Comments on To Rent or Not To Rent

One of the more common non-industry discussions about the industry has long been the renting versus owning question. Who comes out ahead over the long term? Is it the home owner who commits a huge amount of capital to home ownership and sees their house increase in value over time? Or is it the renter who rents an apartment or… Read more »

Ownership Housing Affordability in Canada

      No Comments on Ownership Housing Affordability in Canada

The National Bank of Canada last month released a document which they call their ‘Housing Affordability Monitor’ which tracks historical affordability of ownership housing—condo and non-condo—in ten of Canada’s largest cities. You can download the document in PDF format from the link below. https://www.nbc.ca/content/dam/bnc/en/rates-and-analysis/economic-analysis/housing-affordability.pdf Everyone knows that housing prices keep going up and up and up and keep getting less… Read more »

‘The Limits Of Numbers’

      No Comments on ‘The Limits Of Numbers’

Beyond rental housing, one of my interests is personal investing, which, to learn more about, I read lots of articles and listen to podcasts. Recently I read an article entitled “The Limits of Numbers in Life and Investing” by Vishal Khandelwal. It makes some great points about data and numbers in investing and you can read it via the link… Read more »

Maximizing Rent Increases

      No Comments on Maximizing Rent Increases

In this post I’m going to revisit a topic I looked at in a post dated March 18, 2020: rent increases on turnover. In that post I compared several scenarios in which a hypothetical landlord raises rents by different amounts on turnover. I found that even in high vacancy markets in which large rent increases mean units might sit vacant… Read more »

Rental Housing Types: Risk vs Reward

      No Comments on Rental Housing Types: Risk vs Reward

For some reason the other day I started thinking about the risks and rewards of different types of purpose-built rental housing. Risk is a complex thing and varies from project to project and developer to developer, but, at least from a high-level perspective, it’s probably best defined as absorption risk (how fast will available rentals be leased?) and to a… Read more »

Some Further Thoughts on Target Renters…

I remember that the first serious job I had to do when I started as a consultant in the rental housing industry (in my first week!) was to review a rent roll for a high-rise rental building in central Toronto, an older concrete slab tower almost entirely composed of 1 bed and 2 bed apartments. The landlord had kept reasonably… Read more »

Rents Always Go Up!

      No Comments on Rents Always Go Up!

By now we’ve all heard the famous quip thrown around by an online celebrity talking about equity markets in the United States: “stonks always go up!” Although it’s not true when talking about individual stocks, it’s definitely true when talking about broad-based indices such as the S&P500, at least over multi-year periods. There has been much discussion in Ontario about… Read more »

Question: Who Are The Target Renters For New Rentals?

Here are two important facts it is essential to understand about new rentals and their target renters: Overlooked Fact #1: Anybody and everybody can be a renter. No really, it’s true. Readers who work for property management firms should think about the rental buildings they manage: can you provide a profile of a typical renter? You can’t because your buildings… Read more »