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.

Joanna Gerber

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. 

Joanna Gerber

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.

Joanna Gerber

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.

Joanna Gerber

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.

Joanna Gerber

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.

Joanna Gerber

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.

Joanna Gerber

Myth 1: You Need a U.S. Credit History to Buy Property

Reality: One of the most common misconceptions is that you need a U.S. credit history to secure financing for a property purchase in the United States. While it’s true that many U.S. lenders require a credit history in their country, this is not always the case.

RBC’s cross-border mortgage services8 allow Canadians to qualify for a U.S. mortgage using their Canadian credit history. RBC U.S., a subsidiary of RBC Royal Bank of Canada, understands the unique needs of cross-border buyers and offers financing solutions that eliminate the need for a U.S. credit score. This service allows Canadian investors to take advantage of competitive mortgage rates and terms, making it easier to enter the U.S. real estate market without the hassle of building a U.S. credit history. 

Myth 2: Getting a U.S. Mortgage Is Difficult

Reality: Beyond worrying about needing a U.S. credit history, many Canadians also worry that getting a mortgage will be complicated, and that they will need to travel to the U.S. just to apply. However, the mortgage process doesn’t need to be complex. RBC U.S. cross-border mortgage services provide Canadian investors with the support needed to easily navigate the mortgage and buying process. RBC even allows mail-away mortgage application options, so you don’t need to go to the U.S. to complete your mortgage. 

Myth 3: The Buying Process is Similar to Canada

Reality: While there are some similarities, the process of buying real estate in the U.S. differs significantly from Canada in several ways. Even the time to process mortgages is different. The mortgage processing time in Canada is typically five to ten days, while in the U.S. it takes 40 to 45 days. 

One of the biggest differences is the role of escrow in U.S. transactions. In Canada, the process typically involves lawyers handling the transfer of funds and property. In the U.S., an escrow agent  – a neutral third party – holds the funds during the transaction and ensures that all conditions of the sale are met before releasing the money to the seller.

In Canada, a 20% down payment is required for conventional mortgages without insurance, while a minimum of 5% is needed with mortgage insurance. In the U.S., a 20% down payment is typical for primary residences, and 25% is common for investment properties. 

Canadian closing costs are around 2.5% of the purchase price, often covering land transfer tax and legal fees. U.S. closing costs vary, and banks may charge additional fees, sometimes totalling 1% of the purchase price. Notably, RBC U.S., however, does not charge these fees on U.S. mortgages42, offering potential savings.

Understanding these differences is crucial for a smooth buying experience. RBC’s U.S. HomePlus™ Advantage program guides buyers through the U.S. home-buying process, connecting you with knowledgeable industry experts. They also offer a free U.S. home-buying e-guide that covers these unique aspects.

Myth 4: Foreign Buyers Face Higher Property Taxes

Reality: Property taxes in the U.S. are based on the property’s assessed value, and vary by state, county, and even municipality. Contrary to popular belief, foreign buyers, including Canadians, do not automatically face higher property taxes than U.S. citizens. The property tax rate is the same for all property owners, regardless of nationality. Another positive note is that the Canada-U.S. Tax Treaty lets you claim a foreign tax credit on your Canadian tax return for taxes paid to the U.S.

You do need to be aware of all tax implications as the overall tax burden can vary depending on specific factors such as location, property use, and local tax assessments.26 Property tax rates can differ widely depending on where you buy. For example, property taxes in Texas are known to be higher compared to those in Florida. Additionally, some states offer tax exemptions or reductions for primary residences, which may not apply to foreign buyers or those purchasing vacation homes. Be sure to thoroughly research the area in which you are considering buying.

However, apart from property taxes, Canadian buyers should be aware of potential lender fees that impact foreign buyers. Some U.S. lenders charge a “foreign national premium,” which typically ranges from 1.5% to 2% of the loan amount. This fee is specifically charged to foreign buyers who secure a U.S. mortgage. The good news is that not all lenders impose this fee. For instance, RBC U.S. not only avoids the foreign national premium, but they also do not charge standard lender fees such as underwriting, processing, or origination fees.42 This can lead to significant savings for Canadian buyers and further simplifies the process of acquiring U.S. real estate.

Consulting with a cross-border tax expert is recommended, for advice tailored to your specific circumstances.

Myth 5: Renting Out Your U.S. Property is Complicated and Risky

Reality: While renting out a U.S. property does involve certain responsibilities, many Canadian investors successfully rent out their U.S. properties, enjoying a steady income stream, especially in popular tourist destinations. 

The key to successful property management lies in understanding the local rental market and regulations. For example, short-term vacation rentals may be subject to specific zoning laws or restrictions, particularly in cities like Miami or Los Angeles. Working with a local property management company reduces the burden greatly, ensures all aspects are compliant with legislation, and provides peace of mind. Property managers can handle everything from tenant screening to maintenance and rent collection, reducing risks and simplifying the rental process.

Getting Support

The U.S. real estate market offers exciting opportunities for Canadian investors, but it’s important to separate myths from realities to make informed decisions. With the right knowledge, resources, and support, such as RBC’s cross-border mortgage services, Canadians can successfully buy U.S. property.

RBC U.S. offers flexible mortgage options and secure financing with favourable terms, with the ability to finance properties across all 50 states.25 When you choose to get your U.S. mortgage with RBC’s cross-border mortgages, you can avoid the foreign national premium that other U.S. lenders may charge. You are also able to use your Canadian credit history to qualify for a mortgage with RBC, too, so getting a U.S. mortgage is easier. Finally, RBC’s pre-approval process allows you to move quickly when the right property becomes available.

Furthermore, RBC’s HomePlus™ Advantage program assists Canadian buyers with a comprehensive suite of tools and resources, including access to U.S. real estate agents who specialize in helping Canadians find properties that meet their investment goals, as well as tax and legal advisors. You can even get a free U.S. home-buying e-guide. 

Joanna Gerber

Ben Rabidoux notes in an Edge Realty Analytics report that this marks the third consecutive month of rising sales, indicating a clear rebound in buyer activity. Additionally, there were upward revisions to the sales figures of the prior four months, further emphasizing the strength of this recovery. The rise in demand is particularly notable in the condo segment, where activity has visibly picked up.

New Listings Moderate Despite Long-Term Supply Trends

On the supply side, seasonally adjusted new listings in October saw a 6.8% decline from the previous month. However, compared to the same period last year, new listings were up by a modest 6.5%. This suggests that while there has been some pullback in new listings recently, there is still a potential for a stronger flow of inventory in the coming months. Rabidoux predicts that, given the two-decade lows in supply observed throughout 2023 and early 2024, it is likely that sellers may return to the market through next spring, contributing to a continued temporary overshoot in listings above long-term trends.

Improved Market Balance as Sales Outpace New Listings

October also saw a significant improvement in the market balance, driven by the surge in sales alongside a decline in new listings. The sales-to-new listings ratio improved significantly to above the critical 40% mark, rising from 31% in October 2023 to 43% in October 2024. Historically, a ratio below 40% has been a precursor to major price declines if sustained, so this is a positive sign for market stability, according to the Edge Realty Analytics report.

Additionally, the months of inventory—a key indicator of market tightness—saw a substantial decrease. Both the single-family and condo markets showed tighter conditions compared to the previous year, indicating a shift toward a more balanced market.

Home Prices Show Signs of Stability

Home prices in the GTA appear to be stabilizing. Following a 0.5% decline in September, the MLS Home Price Index (HPI) rose slightly by a seasonally adjusted 0.1% in October. The HPI has remained largely flat throughout 2024, hovering at levels last seen in Q3 2021. 

Condo Market

Elevated supply levels in the condo segment are expected to persist, with projections indicating an oversupply that could extend out to 2027. This trend may impact pricing dynamics and rental markets in the coming years, according to Rabidoux.

While the current condo market may appear oversupplied, there are concerns about a potential shortage in the longer term. Condo sales dropped 81% year-over-year in September to hit the lowest September levels on record. The cumulative sales so far this year are less than half of what was seen during the financial downturn in 2009.

This decline in new condo sales is expected to result in a related drop in condo starts throughout 2025. While there are currently around 70,000 units still in the construction pipeline, looking ahead, condo completions are projected to fall dramatically by 2028. At that point, completions may dip below 5,000 units annually, well below even the most conservative demand forecasts.

This could point to a potential condo shortage several years down the line, which could drive up prices and rents. However, timing an entry point into the market would be challenging, given the current uncertain conditions.

Condo Rental Market

The latest data from the Toronto Regional Real Estate Board (TRREB) highlights a disconnect between supply and demand for condo rentals. 

Leasing activity was up 29% year-over-year in Q3, reflecting strong demand. However, this was overshadowed by a surge in new rental listings, which increased by 46% over the same period.

This influx of new rental supply pushed the lease-to-list ratio to its second-lowest point in a decade, surpassed only by 2020 levels. As a result, rents have softened compared to last year. The increase in supply is partly due to a high number of new condo completions, many of which are entering the rental market, contributing to downward pressure on rents.

However, according to the Edge Realty Report, there are some positive signs of improving cash flow for prospective condo investors. Factoring in principal repayment, the cash flow index is nearing breakeven levels.

Joanna Gerber

For those looking to expand their portfolio into Calgary’s lucrative multi-unit property market, it is important to conduct thorough research. It can be challenging to sift through the opportunities to identify the best options that meet your personal investment needs and goals, but a top Calgary realtor who specializes in investment properties, such as Jesse Davies, leader of the Jesse Davies Team with Century 21, can simplify the search and ensure you are well-informed.

Calgary’s Real Estate and Rental Market

Calgary’s real estate market in 2024 continues to be shaped by several intersecting trends. The city has experienced sustained population growth, rising a notable 6.2% year-over-year in 2023.

The housing inventory in Calgary has been significantly strained, with available listings in August 2024 sitting at 25% lower than historical averages for the month​.

Jesse Davies notes, “The rental market mirrors the tight supply seen in the housing market. The current competitive environment is driven by limited options for both buyers and renters, pushing demand and prices higher across the board. This is leading to low vacancy rates for rental apartments and strong rents, which translate to more secure and consistent income for landlords.”

Source: CMHC

Now is potentially an excellent time to investigate multi-unit investments in Calgary, as the City is in a phase of encouraging higher-density housing. Initiatives like the Office Conversion program, with incentives like the Plus 15 Fund Offset Program aimed at encouraging residential development, may lead to exciting new options, in addition to existing, lucrative ones. 

The Multi-Unit Investment Advantage in Calgary

Investing in multi-unit properties in Calgary offers several key advantages over single-family homes or smaller rental properties. 

Economic Resilience and Return Potential

Multi-unit residential investments can generate higher total returns through a combination of rental income, property appreciation, and operational efficiencies. 

Davies remarks that “Calgary multi-unit properties tend to have good cap rates, indicating a stable income stream. This, combined with the fact that Alberta doesn’t limit rent increases, means the potential rental income is strong. This makes for excellent wealth-building opportunities”

Owning multi-unit properties, including multiplexes and apartment buildings, helps spread out maintenance and management costs across multiple units, increasing operational efficiency and profit margins​. The negative impact of a vacancy is also balanced out by the other units that are filled.

Favourable Demographics and Tenant Demand

Calgary’s growth trajectory, driven by job creation in sectors such as technology, energy, and professional services, attracts a diverse tenant pool. Young professionals and families who are priced out of home ownership but prefer city living make up a significant portion of the renter demographic. Overall, a sustained demand contributes to reliable cash flow from rentals​.

Identifying Ideal Multi-Unit Investment Properties: Strategic Approaches to Searching for Properties to Build Wealth

When searching for multi-unit properties, the goal is not simply to buy a building but to make a strategic acquisition that will yield long-term returns, build wealth, and align with the investor’s broader financial objectives. Understanding the nuances of Calgary’s real estate market, and targeting specific property features can significantly improve the chances of securing a profitable investment, so leveraging the expertise of a seasoned realtor can provide a significant advantage.

Diversify Across Neighbourhoods for Growth and Stability

To build a resilient multi-unit property portfolio, diversify investments across different Calgary neighbourhoods. This strategy helps mitigate risks that come with overexposure to a single market segment and positions an investor to capitalize on different types of rental demand. 

Local real estate expert Davies suggests taking this strategy a step further, and recommends that “Investors should diversify not only by neighbourhood but also across tenant demographics to achieve maximum stability.” 

Davies also gives some examples. The multi-unit properties in Beltline or Mission can cater well to young professionals due to their proximity to Calgary’s downtown business district, restaurants, and nightlife. On the other hand, suburban areas like Panorama Hills or Tuscany, known for their family-friendly environments and excellent schools, can be ideal for larger units appealing to families seeking a quieter, more residential atmosphere. Neighbourhoods like Bridgeland, undergoing revitalization and known for a mix of cultural amenities and green spaces, often appeal to young families and mid-career professionals, so a blend of units that cater to these groups can be successful. 

Look for Growth Corridors

Consider emerging neighbourhoods that have future growth potential. Suburbs or areas undergoing revitalization projects may offer more affordable properties with higher upside potential. Davies suggests the East Village and Ogden neighbourhoods, as they have seen significant development activity and could offer higher returns for long-term investors.

Assess Local Amenities and Infrastructure Projects

Proximity to amenities such as schools, parks, transit lines, and major employers can make a property more attractive to tenants. Calgary’s planned Green Line or other developments can directly impact the value of multi-unit buildings located near these developments. A realtor who is knowledgeable about upcoming city plans and zoning changes can help you identify affordable neighbourhoods with favourable long-term prospects, while avoiding areas that are over-saturated or where growth is unlikely.

Follow Economic Indicators to Identify High-Demand Areas

Economic indicators like job growth, population increases, and business investments are often linked with higher rental demand. Multi-unit properties in economically expanding areas or near major employment hubs typically see better tenant occupancy and steadier rent increases. Areas with active real estate development and new construction often present strong growth opportunities, too. A knowledgeable realtor can provide access to city-approved development plans and other resources to reveal neighbourhoods with the greatest investment potential.

Evaluate Property Condition and Potential for Improvement

When searching for multi-unit properties, it’s critical to assess not just the current condition of the building but also its potential for improvements that could increase rental income or property value. 

While cosmetic upgrades like painting and flooring can add value, larger structural issues such as the foundation, roof, or plumbing can be costly. Ensuring a thorough inspection is essential to assess any hidden problems that might become financial burdens.

A skilled realtor can help identify properties with hidden potential where targeted, cost-effective upgrades can yield strong returns, and warn you if significant, foundational work is required. Such a property could still be profitable, but the investment needs to be approached carefully.

Understand the Legal and Regulatory Environment

Navigating the legal aspects of multi-unit property ownership is crucial to avoiding costly mistakes. Zoning regulations, building codes, and rent control laws all play significant roles in determining what you can and cannot do with your multi-unit property. An investment realtor can guide you on current restrictions, future potential, and other aspects that impact a potential property’s profitability; professional legal advice is also recommended to ensure compliance. 

Determine the Right Tenant Demographics for a Property

The ability to attract and retain quality tenants is a key factor in maximizing returns from multi-unit investments. Determining the target tenants for a potential multi-unit property to invest in ensures you are prepared for what will be involved in attracting and retaining tenants, and that the property will fit your investment goals.

Tenant profile diversification, or catering to a wide range of potential tenants, can help ensure consistent income. Factors such as proximity to public transport, schools, or major employers all influence who is interested in your property; a wide variety of amenities will draw multiple demographic types. Similarly, a property with a mix of unit sizes can attract varied singles, couples, and families.

Again, an experienced realtor can offer insights into which tenant profiles are most common in specific neighbourhoods, as well as how to tailor a property to meet these demands. 

Financing

Favourable financing reduces expenses, allowing for more money to go towards wealth building. Multi-unit requires strategies beyond a simple conventional residential mortgage, however. 

Commercial loans tailored for income-generating properties provide flexibility with loan-to-value ratios and interest rate structures, making them a valuable tool for wealth building. Traditional commercial loans are commonly used to fund multi-unit investments, but alternative financing options like private loans can offer faster access to capital and additional flexibility. To further expand their portfolios, investors can also leverage partnerships and joint ventures, pooling resources to increase purchasing power, to enable the acquisition of larger, higher-yield properties. Thorough research and consulting with a mortgage broker experienced in multi-unit properties is recommended to get the most favourable financing.

Strategies for Multi-Unit Investments

Value-Added Investment Strategies

A value-added approach, which focuses on acquiring properties that require renovation or operational improvements, can significantly enhance both rental income and property value. Properties can be obtained at a competitive price, while strategic improvements can be done cost-effectively, for an excellent overall return on investment (ROI).

Value-added strategies go beyond basic renovations and aim to improve both property appeal and income potential. Targeted upgrades like modernizing unit interiors, installing energy-efficient appliances, or adding sought-after amenities such as on-site gyms or laundry facilities are best for increasing ROI. The addition of eco-friendly features, like solar panels or water-saving systems, not only attracts environmentally conscious tenants but can also qualify for local energy incentives, improving the investment’s bottom line. 

Operational improvements, such as incorporating smart property management technologies and re-evaluating leasing practices to include rent escalations tied to market trends, also help increase income and asset value.

Market Diversification

Expanding investment into different neighbourhoods or cities can significantly mitigate localized market risk and offer better stability. This ensures downturns or unexpected events in one market do not critically impact an investor’s entire portfolio. By selecting regions with varying economic drivers such as university towns, suburban growth areas, or urban centers with revitalization plans investors can capture the benefits of diverse rental demand and property appreciation rates. Market diversification enables a broader reach into emerging or resilient areas that might have better potential during different economic cycles.

Tenant Profile Diversification

Tailoring multi-unit properties to attract a diverse tenant base is another powerful strategy for income stability. Rather than focusing solely on one tenant type, such as students or young professionals, investors can create varied units or amenities that appeal to different demographics. This can include designing family-friendly units with additional space and playground areas or catering to retirees with accessibility features. Diversifying the tenant profile helps reduce vacancy risks by ensuring a broader appeal and smoother transitions during tenant turnover, as the property remains attractive to different life stages and needs.

Future Outlook

As Calgary’s population continues to grow, driven by economic expansion and quality of life, demand for rental housing is likely to remain robust. Multi-unit properties present a resilient investment model, balancing cash flow stability and capital appreciation. The city’s development plans promise to elevate property values in well-connected neighbourhoods​. Overall, investing in Calgary’s multi-unit real estate market offers both immediate and long-term financial benefits. 

For optimal results, the right properties need to be selected, however. Working with an experienced Calgary investment realtor like Jesse Davies can be a critical advantage for investors navigating the complexities of multi-unit property acquisitions. This expertise helps identify high-potential properties that provide a solid foundation for wealth building. 

Joanna Gerber