Tag Archives: construction

The Effect Of Increasing Supply On Average Rents

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In my post last (last) week I talked about ‘trickle down’ supply issues and explained my reasons why I don’t think it results in increased affordability or increased access to affordable rents (some extreme situations excepted). One of the assertions I made was that rents in older buildings will keep going up, no matter how many new buildings—i.e. high-rent rentals—are… Read more »

Trickle-Down Rental Housing Development Doesn’t Work

There’s a recent article which has been making the rounds titled “How luxury apartment buildings help low-income renters.” I think it showed up first on a US website but it’s been republished in Canada. I’ve included a link to a US website below so you can read the article (I suspect that’s where the article was published first). https://fullstackeconomics.com/how-luxury-apartment-buildings-help-low-income-renters/ The… Read more »

Rental Housing Types: Risk vs Reward

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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 »

Construction Costs Are Rising

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Altus recently released their annual report on construction costs in Canada and you can read REMI Network’s article discussing Altus’s report here. The overall gist is that construction costs for multi-unit housing projects are increasing across Canada and are projected to increase, in most markets, by 1% to 4% by the end of this year, but by 5% in the… Read more »