Multifamily Investing in Canada: Still Worth It?
Multifamily housing continues to be one of Canada’s most resilient real estate sectors, but the landscape has shifted compared to the last few years. Investors who understand today’s dynamics can still find strong, long-term opportunities.
Current market:
Demand remains robust. Record immigration levels, limited homeownership affordability, and a nationwide housing shortage are keeping rental demand high.
New supply is easing rent growth. Many high-end apartment projects started during the low-interest-rate era are now being delivered. This extra supply is softening rent increases in some major cities.
Higher costs are squeezing margins. Elevated interest rates, rising insurance, property taxes, and maintenance costs mean investors must underwrite more conservatively and look for operational efficiencies.
Where the opportunity is:
Mid-market and affordable apartments. Properties that appeal to a broad tenant base and are less exposed to economic swings continue to perform strongly.
Value-add strategies. Upgrading older buildings, improving energy efficiency, or professionalizing management can unlock higher rents and lower expenses.
Creative deal structures. Joint ventures or alternative financing can help offset high borrowing costs and make acquisitions possible in today’s lending environment.
Even with headwinds from rates and new supply, Canada’s multifamily sector is underpinned by powerful demand drivers. Investors who focus on fundamentals such as location, tenant demand, and disciplined cost control, are well positioned to succeed!
If you’re looking to start investing in real estate, reach out to Cornerstone Multifamily Inc. to start your journey today. We can help you identify opportunities, run the numbers, and navigate this evolving market with confidence.
Corrina Nieman, Vice President
