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Canadians increasingly view single-family rentals as a practical alternative, as the dream of homeownership slips further out of reach. The average home price in many markets more than doubled between 2006 and 2021, forcing first-time buyers out of the market. With rent levels and mortgage-carrying costs now closely aligned, many looking to buy a home find renting a more viable option—despite lingering hopes of owning one.
Affordability is hampered not only by pricing but also by regulatory hurdles. High municipal development charges—reaching nearly $190,000 per low-rise unit in Toronto—alongside the OSFI stress test, are cited as major obstacles for those trying to enter the housing market. There’s a noted scarcity of “missing-middle” housing—units between small condos and detached homes—which exacerbates the shortage of suitable options for middle-income families.
In response to these pressures, developers are pivoting toward rental rather than condo projects, especially in single-family formats. Although rental rates remain high, the cost of carrying a mortgage on an average-priced home can now match or exceed rent, tipping the scales toward renting. Combined with tight mortgage rules that require qualifying at rates higher than current market rates, the financial calculus continues to favor renting, positioning single-family rental homes as an increasingly prominent segment in Canada’s evolving housing landscape.
Read the full article on: REAL ESTATE MAGAZINE
