Despite several interest rate hikes in 2017, the multi family market continues to show signs of strength and resiliency in Waterloo Region and Guelph.
Fuelled by investor demand and a limited supply of available properties, we have seen cap rates remain at all-time lows while the price per unit has continued to climb to all time highs.
Fortunately for owners, rents have continued to rise and demand for rental housing has never been higher. To help meet this demand, we continue to see new multifamily developments throughout the region and tenants are paying a premium for quality finishes in superior locations.
“Cap rates remain at all time lows while the price per unit has continued to climb to all time highs.”
Moving forward, it is safe to say that long term tenants with rents significantly below market will be less likely to relocate now due to the drastic rise in rents that they would have to pay elsewhere. With a supply of new, modern rental stock coming available in the market, it will be important for landlords of older buildings to make capital improvements to their units on turnover not only to remain competitive in the market but to achieve the maximum rents available.
As always, if you ever have a question about a specific property, transaction or the market in general, please to not hesitate to reach out.