Vacancy rates and new condominium development
Tuesday Jan 29th, 2019Share
"Canada has been undergoing a construction boom," Capital Economics senior economist Stephen Brown wrote in a report last week. "As has been typical of historic real estate cycles around the world, new supply will reach the market just as demand is falling."
Brown also predicted that developers will react by cutting back on new housing starts. And even if Vancouver stops building new houses entirely, the oversupply in the next two years would be nearly as large as if construction continued.
However, Canada has largest shares of international students in comparison to their total higher education populations. It is just behind Australia (23.8%) and the U.K. (21.1%).
If anyone will look at the chart below,Toronto see almost 30% annual increase in international students, reaching almost 200,000 in 2018, and they all need to live somewhere. They all come from higher-middle class families, able to afford high cost of education and yes, cost of accomodation, creating demand for rentals and condos, and pushing rental prices higher, much higher.