That’s because the central bank’s October 23 policy announcement in which it slashed its overnight lending rate by 50 basis points to 3.75%, and in doing so, achieved neutral territory was an emphatic statement intended to stoke consumer confidence.

But while it will take some time for the conventional housing market to build momentum, the luxury market is poised to rebound, notwithstanding a glaring issue: scarcity of product.

“There has been so much uncertainty in the economy that conditions haven’t necessarily been fertile to launch luxury projects, but our team includes expert analysts and we’ve determined 2025 is going to be the right time,” said Yoav Bohbot, vice president & director of acquisitions at Brightstone, a developer based in the Greater Toronto Area.

There aren’t too many projects slated to go on sale next year in the luxury segment of the housing market, and that’s why Brightstone is taking advantage of the market by launching five projects across the GTA.

Those projects are SchoolHaus Towns and Mackenzie Park, both in Oshawa; OG Urban Towns in Mississauga; The Elms in Thornhill Woods in Richmond Hill; and Kerr Village Towns in Oakville, which was designed by world-renowned architect Richard Wengle.

Mackenzie Park is a mix of townhouses, semi- and single-detached homes, and located near schools, making it the perfect community for young families. Along with SchoolHaus Towns, which will see 159 stacked townhouses built on three acres adjacent to one of the GTA’s most sought-after schools, the developments are already making noise locally.

And Bohbot says these projects are located near schools for a reason.

“Many of the buyers grew up in the neighbourhood and now with children of their own, they want to come back, but there’s a lack of new housing in the area,” he said. “The character of the neighbourhood allowed us to build these beautiful luxury homes. The site has an elevation of nine metres on one end and it makes it feel like you’re in your own community.”

In addition to a 36-townhome project in Thornhill Woods, OG Urban Towns will be a uniquely situated luxury infill project in Mississauga. Located near Cooksville GO Station, the 101-unit stacked townhouse projects will have a large internal park and amenity space itself unusually large for a project like this.

The development is also fairly close to Mississauga’s city centre, which boasts Square One Shopping Centre and a slew of restaurants, but it’s also blocks away from the Hurontario LRT, which will stretch from Lakeshore to Bramalea in Brampton.“In this market there isn’t anything new today, even in that neighbourhood,” Bohbot said.

He added that new Canadians should find OG Towns, which will have up to three bedrooms, desirable.

“It will have an underground garage, and with a project like this, we’re targeting, primarily, the first-time homebuyer.”

In one of the most coveted neighbourhoods in Oakville, Brightstone is developing Kerr Village Towns, which will be a 48-unit townhouse project near Lake Ontario, with two commercial spaces as well. Originally purchased from SmartCentres, Brightstone has brought a whole new vision to the project, including store frontage on Lakeshore that will fit seamlessly with the character of the neighbourhood.

“The typical buyer here is someone who appreciates the neighbourhood,” Bohbot said. “They appreciate the walking distance to amenities like parks, shopping and, of course, schools. It’s location, location, location here; it’s second to none.”

Brightstone first burst onto the scene with two projects, The Briar on Avenue in Toronto and Fairfield Towns in Etobicoke. The former used the brilliant Wengle, while the latter, which with switch subway access, has a very interesting story behind it.

Brightstone decided to build all 14 units at Fairfield during the COVID-19 pandemic and then released them to the market only after they had been completed.

“It helped us achieve an even greater sale price because they were turnkey,” Bohbot said. “That’s another decision our team made, even though it was our very first project. Our team of experts understands the GTA’s markets better than anybody else in this industry and we know what the market can bear at any given time.”

The Canada Public Land Bank was launched in August 2024 as part of the federal government’s Public Lands for Homes Plan, an ambitious initiative under Budget 2024 and Canada’s Housing Plan. This plan is designed to address the housing crisis through the accelerated transformation of surplus and underutilized public lands into residential developments.

With the 12 newly added properties, the Public Land Bank now encompasses over 430 hectares of land. 

Newly Available Properties

The newly announced properties could create nearly 3,900 housing units. 

The 12 newly added properties to the Canada Public Land Bank have the potential to create nearly 3,900 housing units for middle-class Canadians. These properties are spread across six provinces and one territory, featuring a diverse mix of locations, including both large urban centers and smaller community settings.

Alberta

• Calgary – Currie Phase 14, Block 27A: Located at the corner of Calais Drive and Breskens Street Southwest.
• Calgary – Currie Phase 14, Block 31B: Situated at the intersection of Bessborough Drive and Breskens Street Southwest.
• Calgary – Currie Phase 12C: Found at the corner of Bessborough Drive and Quesnay Wood Drive.

Ontario

• Bracebridge – 98 Manitoba Street: Situated in Muskoka.
• London – 451 Talbot Street: Located in downtown London.
• Ottawa – 529 Richmond Road: Located in the west end of Ottawa.

Quebec

• Laval – Montée Saint-François (Laval Penitentiary): Located in one of Quebec’s key urban regions.
• Laval – Vacant Land next to 1575 Chomedey Boulevard: Another site in Laval.

Yukon

• Whitehorse – 419-421 Range Road: This property offers a diverse location in one of Canada’s northernmost cities.

New Brunswick

• Edmundston – 22 Emerson Street: Positioned in northern New Brunswick.
• Grand Falls – 373-377 Broadway Boulevard: Centrally located in the town of Grand Falls.

Nova Scotia

• Dartmouth – 15 Iroquois Drive: Positioned within the Halifax Regional Municipality.

A full list of all 83 properties and details are available on the online Canada Public Land Bank platform.

Canada Public Land Bank

The Canada Public Land Bank is one part of a broader effort by the federal government to unlock land for housing development. Since its launch, the Land Bank has facilitated calls for proposals for multiple properties, enabling collaboration with homebuilders, housing providers, and other stakeholders. Proposals for sites in cities like Edmonton, Toronto, and Gatineau have already been submitted, with evaluations currently underway.

A core principle of the Public Lands for Homes Plan is to preserve public ownership of lands by utilizing long-term leasing agreements. This ensures that new developments emphasize affordable housing while safeguarding public assets for future generations.

Additionally, the federal government has introduced the Public Lands Acquisition Fund, allocating $500 million to acquire surplus land from other levels of government. This fund will further expand the inventory of potential housing sites.

National Housing Goal

The federal government has set a target of building 4 million homes across Canada and aims to unlock 250,000 new homes by 2031 through the Public Lands for Homes Plan. 

Feedback and Proposals

The Canada Public Land Bank program relies on collaboration with provinces, territories, municipalities, and other stakeholders. Feedback on the initiative and its properties, as well as proposals for how to use public lands, can be submitted online.

A key component of the budget is the City’s decision to allocate $22.9 million towards the creation of affordable and supportive housing. This funding was adjusted upward from an initial $18.9 million due to additional revenue generated by the enhanced Vacant Unit Tax program.

Long-Term Investment Strategy for Housing

The $22.9-million investment is part of a broader plan to significantly expand affordable housing capacity over the next six years. The City aims to grow its annual housing investments incrementally, resulting in anticipated total contributions ranging between $138.3 million and $162.7 million during this period. By leveraging federal and provincial funds, the City plans to deliver at least 500 new affordable and supportive housing units annually to address both current needs and future growth.

Supporting Initiatives in Planning and Development

Beyond affordable housing, the budget includes allocations for key planning and development projects. The committee approved $3 million to fund an update to Ottawa’s Official Plan, a critical document that sets out the city’s growth framework until 2046. The update, set to begin in 2025, will ensure the plan aligns with the City’s evolving priorities, particularly around intensification and sustainability.

Additionally, $7.5 million has been allocated for the purchase and implementation of a new Land Management Solution software. This is aimed at streamlining land use planning and permitting processes, making development projects more efficient and transparent. Another $900,000 is earmarked for completing Ottawa’s new Zoning By-law, which, if approved, would replace the current By-law 2008-250 and modernize the city’s zoning framework.

New Zoning By-law

The upcoming Zoning By-law is a key component of the City’s planning strategy. Once finalized in 2025, it would implement the policies outlined in the Official Plan, promoting growth to align with Ottawa’s goals for intensification and housing affordability. A central feature of the new by-law is the introduction of Neighbourhood Zones, which replace the existing Residential Zones (R1-R5). These zones aim to simplify the regulatory framework while promoting housing diversity.

The new zoning regulations will prioritize form and function rather than housing typologies, encouraging flexible development. Under a form-based approach, zoning rules focus on the size, shape, and overall design of buildings rather than strictly limiting what types of homes can be built (like single-family houses or apartments). This allows more flexibility to create a mix of housing options as long as they fit the neighbourhood’s look and function.

The Neighbourhood Zones will also allow mixed uses, such as retail and services, to be integrated into residential areas to encourage walkability and meet the daily needs of residents.

The Neighbourhood Zones will be subdivided into six primary zones (N1 to N6), based on height and density limits, and six subzones (A to F), which address lot width and setbacks. This streamlined structure is expected to be easier to interpret and enforce while maintaining neighbourhood character.

Neighborhood Uplift Zoning Strategy

The new zoning framework also includes a “Neighborhood Uplift Zoning Strategy,” designed to increase housing density in strategic areas. For instance, areas near transit corridors, hubs, and rapid transit stations will benefit from higher density allowances under the Evolving Neighborhood Overlay designation. Meanwhile, low-rise infill redevelopment will be encouraged in interior neighbourhoods, ensuring growth aligns with existing community contexts.

Next Steps 

The Planning and Housing Committee’s budget recommendations, including the $22.9-million housing investment, will be considered by City Council on December 11. 

Location and Accessibility: Urban Convenience, a Village Vibe, and a Wealth of Natural Beauty

Located on Kingston Road, Residences at Bluffers Park offers a prime position in Scarborough. The Scarborough Bluffs, one of Toronto’s most iconic natural attractions, are just a short walk or bike ride away, providing access to beaches, trails, and parks. This proximity to nature is complemented by urban conveniences, with shops, restaurants, schools, and other amenities nearby.

Connectivity is a key highlight, with Kingston Road serving as a gateway to downtown Toronto and beyond. The development is also well supported by public transit, with the 12 Kingston Road bus providing easy access to the TTC network. For those commuting to the city center, the nearby Scarborough GO station ensures swift transit options. Furthermore, future infrastructure improvements, including the Scarborough Subway Extension and the Kennedy Station LRT, promise enhanced accessibility and a boost to the local real estate market.

Design and Architecture

The architectural vision for Residences at Bluffers Park has been crafted by Turner Fleischer Architects, known for their ability to balance modern design with contextual harmony. Rising 23 and 13 stories respectively, the two towers reflect contemporary elegance while respecting the area’s historical and natural context.

The interiors, designed by TACT Design Inc., focus on curvilinear forms and a palette of soft, warm tones with natural accents. The combination creates a sense of comfort and luxury, starting from the inviting lobbies to the individual suites. 

With unit sizes ranging from 430 to 1,082 square feet and configurations from one to three bedrooms, the residences cater to diverse lifestyle needs, including families seeking larger spaces.

Resort-Style Amenities

The plans for the Residences at Bluffers Park promise an amenity-rich lifestyle. The buildings feature thoughtfully designed outdoor spaces, including private playgrounds, a dog run, green gardens, and BBQ dining areas. A key feature is the 8th-floor rooftop terrace, with sweeping views of Lake Ontario, the surrounding greenery, and Toronto’s skyline.

Indoor amenities include a full-time concierge, a gym with stretching areas, saunas, and a co-working space with private meeting rooms. Residents can also enjoy a media room, games room, and private business center. Families will appreciate the dedicated kids’ playroom, while pet owners will benefit from the pet spa.

Innovative features like a community messaging app and digital booking systems for shared spaces enhance convenience. The inclusion of smart parcel storage ensures efficient package handling, a critical consideration for modern urban living.

Sustainability

Sustainability is prioritized through innovative features designed to reduce the community’s carbon footprint. Rainwater harvesting supports irrigation for the landscaped grounds, while green roofs improve energy efficiency and contribute to a cooler urban environment. Native drought-tolerant plants, pollinator species, and large canopy trees enhance biodiversity and align with Toronto’s tree canopy coverage goals.

For environmentally conscious residents, the availability of electric vehicle (EV) charging stations reflects the growing demand for sustainable transportation solutions. High solar reflectance paving mitigates the Urban Heat Island Effect, further showcasing the developers’ commitment to meaningful sustainability.

The Future of the Neighbourhood

Scarborough is undergoing significant transformation, with the City of Toronto envisioning a denser, transit-oriented, and pedestrian-friendly urban center. The Scarborough Subway Extension, which will extend Line 2 nearly eight kilometres into the area, is expected to catalyze substantial population growth and infrastructure development.

As the region evolves, Residences at Bluffers Park is poised to benefit from increased connectivity, expanded retail offerings, and enhanced public spaces.

Luxury Suites

Suites at Residences at Bluffers Park start at $517,000, with designs emphasizing both style and functionality. High-end finishes include laminate flooring, quartz countertops, and contemporary cabinetry. Kitchens come equipped with stainless steel appliances and soft-close cabinetry, while bathrooms feature modern glass shower panels and energy-efficient fixtures.

Each suite includes smooth ceilings, expansive windows, and private outdoor spaces such as balconies or terraces. Smart technology, including virtual keys for guest access and pre-wired connections for high-speed internet, ensures modern convenience. The inclusion of individual hydro and water meters allows for precise utility management.

About the Developers

The partnership between Skale Developments and Diamante Development combines decades of expertise and a shared commitment to enhancing the communities they build. Skale, known for its design-centric approach, brings its experience from the nearby Bluffs condominium, while Diamante contributes a track record of delivering landmark projects in Toronto.

Together, these developers aim to create a property that adds value to the Scarborough Bluffs neighbourhood, setting a new standard for luxury living in the area.

With occupancy set for February 2027, this project represents a forward-looking investment in one of the city’s most dynamic neighbourhoods. For more information, including projected returns on investment, the project can be viewed on Investor’s Playbook.

Background: The 2023 Farmland Landscape

In 2023, Canadian farmland values rose significantly, with an average increase of 11.5% across the country. Despite elevated interest rates and high farm input costs, farmland demand remained strong due to limited availability. Saskatchewan, Quebec, and Manitoba led the country in value growth, with increases of 15.7%, 13.3%, and 11.1%, respectively.

Farmland rental rates, which remained largely unchanged in 2023, offered a financial advantage over purchasing, as renting reduced cash flow pressures and minimized financial risk for farmers. Meanwhile, the growing involvement of investment funds and private equity firms in farmland acquisitions showed a diversification in market participants. 

Irrigation capabilities played a critical role in influencing land values in drought-prone regions like Manitoba, Alberta, and Saskatchewan. 

Mid-Year 2024 Highlights

While farmland values continued to rise in the first half of 2024, the pace of growth slowed compared to previous years. According to FCC’s 2024 Mid Year Farmland Report, cultivated farmland values increased by an average of 5.5% between January and June 2024, marking a deceleration from the sharp annual increases of 2022 and 2023. Over the 12 months ending in June 2024, farmland values rose by 9.6%, reflecting the combined influence of limited supply, elevated borrowing costs, and other economic factors.

Regional Variations in Farmland Value Growth in H1 2024

In the Prairies, Saskatchewan recorded the highest six-month growth rate at 7.4%, continuing its dominant position in Canada’s farmland market. Northern and central regions led the province in appreciation, with smaller gains observed in southern areas. Alberta experienced a 4.6% rise. Trends in Alberta have shifted to an increase in smaller land parcels being sold as large holdings are divided, with transactions often occurring via private sales, live auctions, or sealed tenders. Manitoba showed a slower growth rate of 3.9%, marking a decline from its strong performance in 2023.

Quebec saw a 5.4% increase in the first half of 2024, driven by growth in regions like Mauricie-Portneuf and Centre-du-Québec. However, areas with the highest per-acre land values experienced modest gains.

British Columbia rebounded from a 3.1% decline in 2023 to record a 5.0% growth rate by mid-2024, with the Peace-Northern region driving provincial averages.

Ontario, Nova Scotia, and Prince Edward Island saw more subdued growth, with increases of 2.1%, 3.8%, and 1.7%, respectively. In Ontario, high-quality farmland sold better, while average to lower-quality land struggled. The Central West region saw the largest increase in land values, while the Mid Western region showed no growth.

Key Market Drivers in 2024

Farm revenues continue to be an essential factor in farmland value trends. High input costs, such as for fertilizer, fuel, and other essentials, have been squeezing farmers’ profit margins. This is limiting the ability to invest in new land, which may slow the pace of farmland value growth. However, in the short term, strong farm cash receipts in 2023 likely supported the farmland value growth seen in the start of 2024.

Economic pressures, including elevated interest rates during the first half of 2024 and the anticipation of future rate reductions, along with falling commodity prices, have affected both the agricultural industry and farmland real estate markets.

The scarcity of farmland for sale continues to exert upward pressure on values, reinforcing the appeal of agricultural real estate as a resilient asset class.

Positioned near Victoria Park and within steps of the ION Light Rail, Q Condos promises a vibrant and connected lifestyle for residents while offering potential for real estate investors seeking opportunities in the booming Kitchener-Waterloo market.

Scheduled for occupancy in June 2026, the project aims to cater to the area’s increasing desirability, fueled by its thriving tech sector, diversity, and ongoing urban revitalization.

Architectural Vision

Q Condos looks to balance the past and present cohesively. The original 1917 building at the corner of 20 Queen Street and Goudies Lane, inspired by the Beaux-Arts architectural era, serves as the foundation for Q Condos’ design. Rising above this reclaimed brick base, the new tower will feature expansive window wall glazing, coloured concrete panels, and perforated metal balcony screens, establishing Q Condos as a focal point for modern urban design in Kitchener’s evolving skyline.

Strategic Location 

Located on Queen Street, Q Condos sits at the crossroads of Kitchener-Waterloo’s cultural and economic resurgence. The area has gained prominence as a hub for innovation, driven by the expansion of its tech ecosystem, the revitalization of the downtown core, and significant investment in infrastructure. The building is within walking distance of key employment centers in the Innovation District, which houses global players such as Google, ApplyBoard, and Communitech.

Accessibility further enhances Q Condos’ appeal. The building is steps from the ION light rail transit, which connects major points across Kitchener-Waterloo, and it is close to the planned King-Victoria Transit Hub. This forthcoming multi-modal hub will integrate light rail, GO Transit, VIA Rail, and intercity bus services, establishing the area as a significant transportation nexus within Ontario.

It is also within steps of Victoria Park, the largest green space in Kitchener, and other key elements for excellent livability. The area is rich in cultural experiences, with art galleries, theatres, and live music venues contributing to a thriving creative scene. An array of dining options, from cozy cafes to upscale restaurants, ensures something for every palate, while nearby boutiques and shopping centers provide a mix of unique finds and everyday essentials.

Amenities Designed for Modern Living

Q Condos aims to deliver an elevated living experience through an array of thoughtfully curated amenities. Residents will enjoy access to a landscaped outdoor terrace on the ninth floor, complete with a gas firepit, BBQ area, and indoor lounge offering panoramic views of the city. A state-of-the-art cross-training fitness facility caters to diverse wellness needs, incorporating features such as Peloton bikes, free weights, and cutting-edge fitness technology like Lululemon Mirrors.

Recreational options include a multi-sport simulator that provides virtual experiences such as golf and soccer, while the ground floor houses a creative community space with boutique retail and art installations, fostering connections with local artists and businesses. Additional conveniences, such as a fully furnished guest suite, concierge services, and ample bike storage, ensure that residents’ needs are met with ease and sophistication.

Diverse Options for Every Lifestyle

Q Condos offers a range of suite formats designed to accommodate various lifestyles, from young professionals to growing families. The development features one-bedroom, two-bedroom, and three-bedroom suites, each thoughtfully designed to maximize space and functionality. Many units also come with flexible layouts, allowing residents to personalize their living spaces to suit their needs. Prices start at $551,000. 

High-Quality Finishes and Sustainability Features

Suites maintain a focus on comfort, sustainability, and modern aesthetics. These features align with the growing consumer demand for eco-friendly, quality living environments.

Kitchens feature custom cabinetry, granite countertops, and Energy Star stainless steel appliances, while bathrooms are equipped with spa-like finishes, including porcelain tiles and high-efficiency fixtures. The incorporation of programmable thermostats, double-glazed windows, and low-VOC materials underscores the development’s commitment to environmental responsibility and energy efficiency.

A Region in Demand

Kitchener-Waterloo has emerged as one of Canada’s most dynamic real estate markets, with strong demand driven by its expanding tech sector, population growth, and the presence of world-class educational institutions such as the University of Waterloo and Wilfrid Laurier University. Data highlights the region’s potential for investors. Kitchener has experienced rental growth of 31.4% year-over-year, the highest in the country, while maintaining a low rental vacancy rate of 1.2%.

With over 1,400 tech companies employing more than 23,000 people, Kitchener-Waterloo is known as Canada’s Silicon Valley. This concentration of innovation and high-income employment drives sustained demand for quality housing, positioning Q Condos as a prime opportunity for investors seeking rental income and long-term appreciation.

About the Developer

Momentum Developments has earned a reputation as a key player in Kitchener-Waterloo’s urban transformation. Over the past two decades, the company has delivered numerous successful projects that prioritize architectural excellence, sustainability, and community impact. 

Momentum Developments’ Q Condos is an innovative project that offers a unique opportunity for residents and investors alike, as the region continues to attract global talent, foster innovation, and enhance its infrastructure.

For more information, including forecasts for returns on investments, see Investor’s Playbook.

The property, located at the intersection of Bramalea Road and Steeles Avenue in Brampton, spans 90 acres and includes 1.5 million square feet of industrial facilities. These facilities, previously central to Canadian Tire Corporation’s distribution operations, are no longer needed due to recent upgrades and consolidations in the company’s supply chain infrastructure.

Greg Hicks, President and CEO of Canadian Tire Corporation, highlighted the historical significance of the site, stating, “Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain. In that same spirit, we have been investing and evolving, introducing modern and sophisticated facilities in the region, which are key to our supply chain of the future.”

Canadian Tire Corporation views the sale as an opportunity to unlock value from surplus real estate assets. This follows similar transactions involving retail properties in Chilliwack, British Columbia, and the Greater Toronto Area earlier in 2024. The Brampton transaction is expected to generate a pre-tax gain of approximately $240 million, which will be accounted for as a normalizing item upon closing in the fourth quarter of 2024, subject to standard closing conditions.

The proceeds from the sale will be used to reduce debt incurred during the October 2023 buyout and consolidation of Canadian Tire Financial Services, underscoring Canadian Tire Corporation’s focus on financial optimization.

The buyer’s identity was not disclosed in the announcement. Canadian Tire Corporation noted that some statements in its press release, such as anticipated outcomes and plans, are forward-looking and may change due to unforeseen risks or circumstances.

The press release also indicated that the transaction reaffirms Canadian Tire Corporation’s commitment to leveraging its real estate portfolio to support the company’s evolving business needs while maximizing shareholder value.

The ROI of Insulation Upgrades

Insulation is one of the most effective ways to improve a property’s energy efficiency, translating into significant cost savings over time. According to Natural Resources Canada (NRCan), space heating accounts for approximately 61% of residential energy use. Ontario studies indicate that well-insulated homes can see a reduction in energy bills by about 15% to 30%, which can quickly offset the initial installation costs. 

The ROI for insulation improvements varies based on the specific property and existing insulation, local energy costs, and the specific upgrades chosen. For example, upgrading certified windows, doors, and skylights can significantly reduce energy loss in Canadian homes, where inefficient openings can account for up to 25% of heat loss. 

For landlords, the benefits extend beyond energy savings. Properties with better insulation are more comfortable and attract tenants willing to pay higher rents for energy-efficient features. In competitive rental markets like Toronto and Vancouver, where tenants are increasingly eco-conscious, having a well-insulated property can be a strong selling point. Additionally, investing in energy-efficient upgrades may qualify for government incentives and rebates, further boosting the financial return.

Recommended Insulation Upgrades for Canadian Climates

Canada’s climate varies widely, from the cold winters of the Prairies to the milder, damp conditions on the West Coast. As a result, the type of insulation and areas to prioritize can differ depending on your region. 

Attic Insulation

ROI: High

Annual Savings: Up to 20% on heating bills

Cost Estimate: $1,500 to $3,500, depending on attic size and insulation material (blown-in cellulose or fibreglass is common)

Adding or upgrading attic insulation is one of the most cost-effective ways to improve a property’s energy efficiency. Heat rises, and an under-insulated attic can be a significant source of heat loss. The recommended R-value (thermal resistance) for attic insulation in Canada varies by region, with R-50 to R-60 being ideal for colder climates like Alberta and Manitoba. Blown-in cellulose or fiberglass insulation offers an affordable and efficient solution, with minimal disruption to tenants.

Exterior Wall Insulation

ROI: Moderate to High

Annual Savings: 15% to 25% on heating and cooling

Cost Estimate: $3,000 to $10,000, depending on wall area and insulation type (e.g., spray foam or rigid foam board).

Insulating exterior walls can drastically reduce heat loss, especially in older homes with little to no existing insulation. For properties in cold climates like Quebec and Ontario, upgrading to spray foam or rigid foam board insulation can significantly enhance thermal performance. These options also add a moisture barrier, which is beneficial in areas with high humidity or rainfall.

Basement and Crawl Space Insulation

ROI: High

Annual Savings: 10% to 20% on heating

Cost Estimate: $2,000 to $6,000 for basement walls and crawl spaces, using rigid foam board or spray foam.

Uninsulated basements can account for up to 30% of a property’s heat loss. Installing rigid foam board or spray foam insulation along basement walls and crawl spaces can improve energy efficiency and protect against moisture damage. This upgrade is particularly advantageous for properties in coastal regions like British Columbia, where dampness can be an issue.

Spray Foam Insulation for Air Sealing

ROI: Moderate to High

Annual Savings: Varies based on property airtightness

Cost Estimate: $3,500 to $8,000 for comprehensive air sealing in attics, basements, and around openings.

Spray foam insulation provides both insulation and air sealing, making it ideal for hard-to-reach areas like attics, basements, and around windows and doors. It offers excellent thermal resistance (R-value of 6 per inch) and can significantly reduce drafts, leading to lower heating and cooling costs. This is especially beneficial in windy regions like the Maritimes.

Windows and Doors

ROI: Moderate to High

Annual Savings: Up to 25% reduction in heat loss

Cost Estimate: $7,000 to $15,000 for upgrading multiple windows and doors with energy-efficient models.

Energy Star-rated windows are approximately 20% more efficient than standard models, while Energy Star doors offer around 15% higher efficiency. Upgrading to triple-pane or low-E coated glass can further improve thermal performance, particularly in cold climates.

Additional Benefits of Insulation Upgrades

While the primary advantage of insulation is energy savings, several additional benefits can make it a worthwhile investment by improving tenant satisfaction and helping to justify rent pricing.

Enhanced Property Value

Energy-efficient properties are increasingly attractive in the Canadian real estate market, potentially boosting resale value. A well-insulated home can sell for 2-6% more than a comparable property without such upgrades.

Improved Indoor Air Quality

Proper insulation helps prevent moisture buildup, reducing the risk of mould and mildew, which can be appealing to health-conscious tenants.

Soundproofing

Insulation, particularly in walls and floors, can reduce noise transfer between units, enhancing privacy for tenants and making multi-family properties more attractive.

Reduced Maintenance Costs

By stabilizing indoor temperatures, insulation can reduce wear and tear on HVAC systems, extending their lifespan and lowering maintenance costs.

Disruption to Tenants: What Investors Should Consider

While insulation upgrades can offer significant benefits, they can also be disruptive to existing tenants, depending on the scope of work. Transparent communication with tenants about the benefits of the upgrades, and giving ample notice, can help mitigate concerns and foster goodwill.

Minimal Disruption Options

Upgrading attic insulation, adding blown-in insulation, or applying spray foam in specific areas can often be completed within a day or two, causing minimal inconvenience. Scheduling work during daylight hours and providing advance notice can help minimize tenant disruption.

More Invasive Projects

Exterior wall insulation, particularly if it involves removing drywall or siding, can be more disruptive and may require tenants to temporarily vacate the property. Investors should weigh the potential increase in property value against the inconvenience to tenants, which could lead to vacancies or requests for rent reductions.

Additional Considerations for Investors

Before committing to insulation upgrades, consider conducting an energy audit to identify the most cost-effective improvements. An audit can reveal hidden inefficiencies and provide a tailored upgrade plan, ensuring a higher ROI.

Choosing the right insulation material can impact both the effectiveness and cost of the upgrade. Fiberglass and cellulose are cost-effective options, while spray foam provides superior thermal performance and air sealing but at a higher price point.

Insulation upgrades offer Canadian real estate investors a practical way to enhance property value, reduce operating costs, and improve tenant satisfaction. By selecting the right type of insulation based on regional climate and property characteristics, landlords can achieve a strong ROI while future-proofing their investments against rising energy costs. 

By carefully planning these upgrades and communicating the benefits to tenants, landlords can turn energy efficiency into a competitive advantage in the rental market.

The pre-construction market in the Greater Toronto Area (GTA) is showing signs of growth, with trends that could shape the future of real estate investments in the region. In a conversation between Ryan Coyle, founder of Connect Group of Companies, and Ryan Rabinovich, pre-construction developments, particularly in areas like Scarborough and North York, were identified as key opportunities for both agents and investors.

Master-planned communities are an emerging focal point in the GTA. These developments offer more than just residential units they are designed with commercial spaces, parks, and essential infrastructure to create a complete living experience. This approach appeals to a broad range of residents and investors, offering long-term value as communities grow around these developments. According to the podcast, developers are increasingly focused on delivering projects that cater to future needs, which provides investors with the chance to enter value-driven markets.

Scarborough and North York have traditionally been seen as secondary markets compared to downtown Toronto, but as the city expands, these areas are becoming more attractive. Ryan noted that infrastructure improvements and overall urban development in these regions are positioning them as the next hot spots for growth. As these areas remain more affordable compared to downtown, investors may find opportunities for appreciation by entering these markets early.

Though the podcast emphasized the broader infrastructure improvements in these emerging areas, an additional consideration is the specific impact of projects like the Scarborough Subway Extension, which will likely drive further demand in Scarborough. These types of developments make pre-construction properties in these areas even more appealing for long-term investors.

Competition for pre-construction properties is also increasing, especially as more people become aware of the potential gains in emerging areas. Investors looking to capitalize on future appreciation will need to secure units early to take advantage of the lower entry prices, before the demand catches up.

The full podcast can be found here.

On November 12th, the federal government’s and the City of Toronto’s backing for the project was announced.

The project will include a variety of support services tailored to residents, particularly Indigenous people, new Canadians, those experiencing homelessness, women, and people with unique physical and mental health needs. Operated by Dixon Hall, a local community service organization, the building will reserve 15% of its units for accessibility, with features like roll-in showers, barrier-free pathways, and support bars. This redevelopment aims to address Toronto’s housing shortage and accessibility for those who need it most.

Funding and Development Phases

Financial backing for this substantial project has come from the federal and municipal governments. Through the Rapid Housing Initiative (RHI), the federal government has committed over $123 million to support the renovation, with an additional $9.5 million from the City of Toronto. This investment reflects a major push to create affordable housing quickly and effectively in urban centres across Canada. The first phase of the Dundas Street project was completed in the spring of 2024, and 92 residents have already moved in. The second phase is currently underway, with completion expected by 2025.

Other Affordable Housing Efforts in the Area

Toronto’s affordable housing initiatives include additional projects that aim to serve diverse populations in high-demand areas, with a couple underway in the nearby area. 

One notable project is located at 11 Brock Avenue, about 6 km west of 65 Dundas Street East in the West Queen West area, which is similarly designed to provide affordable, rent-geared-to-income units for residents in an increasingly gentrified neighbourhood. Another project, situated at 35 Bellevue Avenue in the Kensington-Chinatown area, approximately 3 km west of Dundas, is also underway, aiming to serve similar needs in a dense, central part of the city.

For ongoing updates on affordable housing projects in Toronto, visit the National Housing Strategy website and CreateTO, which provide details on city-led developments and funding initiatives in Toronto.