Financing hurdles and excessive building prices make it tough for a lot of builders to interrupt floor on new tasks. For corporations with a longer-term outlook, nevertheless, the chance to provide purpose-built housing stays viable, significantly in markets the place tenant demand is powerful and regulatory frameworks are beneficial.
“Growing rental housing is a marathon, not a dash,” Lang explains. “It’s about being selective —selecting areas with sturdy fundamentals and navigating regulatory challenges like hire management with a clear-eyed technique.”
Equiton at the moment has a three-tower rental challenge underway in Ottawa, the place the rental market has lengthy been supported by excessive occupancy charges, low provide, and a desire for city residing. The challenge’s first tower is predicted to launch in mid-2025.
Equiton can be capitalizing on alternatives to strengthen its present portfolio. Properties with important hire gaps to market — the distinction between present rents and prevailing market charges — signify alternatives to unlock worth by way of natural tenant turnover and focused renovations.
“Our common hire is about 30% under market,” Lang notes. “As we flip over models, we shut that hole. It’s a key driver of our internet working revenue and a differentiator in how we strategy progress. Simply as vital, each enchancment enhances high quality and livability for our residents. It’s a win-win.”