205 - Planning for tomorrow’s rental housing needs: Are we listening and responding to signals in the market today?

September 30, 2020

10:45AM - 11:45AM

To maintain a well-balanced, strong community and ensure long-term sustainability, it is vital that municipalities offer a variety of housing options, including provision for rental housing for a broad range of income groups. Market choice in rental housing is a key factor in attracting and retaining people and businesses to a community. Market demand for rental housing in Ontario has been increasing, as indicated by relatively low vacancy rates and appreciation in rental market rates. A number of factors are driving demand for rental housing, including a growing population, erosion in housing-ownership affordability, and changing demographics.
 
However, a significant share of recent rental housing supply expansion has come from the secondary rental market; purpose-built rental housing development (primary rental market) has been more limited. Meeting the needs of rental housing requires a greater emphasis be placed on expanding the purpose-built rental inventory.
 
This session explores the various drivers of demand for rental housing, how this has changed the rental market over the past decade, and how these trends are expected to influence future demand. We will also discuss Ontario’s rental housing supply and the factors contributing to the lack of new supply with a focus on the financial feasibility challenges of purpose-built rental development as experienced through a private-sector pro-forma lens. Other topics include the role planning policies and permissions play in promoting or impeding rental housing development and the use of municipal financial incentives and their effectiveness in increasing financial feasibility of purpose-built rental development.
 

Speakers