Canada’s Multi-Suite Residential and Industrial Real Estate Poised for Continued

• Multi-suite residential rental demand will outpace the available supply of units in new and existing properties, resulting in significant imbalance.
• The industrial leasing market outlook is stable and healthy, with supply remaining constrained, following the record-setting performance of the past several years.
• Canada’s retail property sector recovery continued, supported by stronger-than-expected spending growth and increased foot traffic.
• As the office leasing market softened, class A rents held up relatively well, due in part to an ongoing flight-to-quality in urban centres across the country.
• Investors have exercised increased caution with regard to Canada’s property market while interest rates and inflation remained elevated, resulting in a surplus of available capital

MISSISSAUGA, ON, Nov. 28, 2023 /CNW/ – Morguard Corporation (“Morguard”) (TSX: MRC) today released its 2024 Canadian Economic Outlook and Market Fundamentals Report, offering a detailed analysis of 2023 Canadian real estate market and trends to watch for in 2024. Morguard’s 26^th annual edition stated that Canada’s economic growth trend will moderate over the near term, with stronger expansion projected for 2025. The positive momentum in the multi-suite residential rental market and the industrial leasing market will continue in the near term in line with the trend of the past few years. The full report with regional insights and video is available at morguard.com/research.

“As interest rates and inflation rates gradually decline, there is an anticipation of pent-up investment demand within the property sector,” said Keith Reading, Senior Director, Research at Morguard. “Multi-suite residential rental properties are expected to be particularly attractive to investors given their healthy fundamentals and positive rent growth outlook.”

Multi-Suite Residential Real Estate

Demand for multi-suite residential rental units has consistently exceeded supply, following the trend of the past few years. This recent demand pressure was fueled by a substantial increase in immigration and stronger-than-expected job growth. Meanwhile, elevated interest rates and inflation have made it more challenging for existing renter households to purchase homes, thereby bolstering demand for rental units. Investors continued to exhibit confidence in the multi-suite residential sector, against a backdrop of heightened economic uncertainty and rental market demand/supply imbalance.  

In 2024, Canada’s multi-suite residential market will continue to experience increasingly constrained supply nationwide. Rental demand is expected to outpace the nation’s supply of existing and newly built units available for rent. The construction slowdown driven by high interest rates may further exacerbate the persistent demand-supply imbalance forecasted for the near term. Multi-suite residential rental properties will be popular targets for investors given a healthy fundamental and rent- growth…