Are multi-family properties recession-proof?

A new report showed that rental vacancy rates for the Canadian multi-family market remained stable in 2014 while the same is expected through 2015, and that sale price per door has increased five per cent nationally.

“We call multi-family, to a certain extent, recession proof,” said Oliver Tighe, Ottawa-based director at Colliers International, which published the report yesterday.

The 2014 Multi-Family Real Estate Report found that average vacancy rates have remained relatively stable year-over-year, with a difference of less than one per cent. There was an upswing in most markets in 2014, including Calgary, Edmonton, Ottawa and Halifax.

“That’s reflective of more investors and more national owners wanting to purchase multi-family buildings because of the attractiveness and stability of the asset class,” added Tighe.

Toronto and Vancouver, of course, continue to have the highest demand. “Vancouver and Toronto have the highest sale price per door, while Montreal and Winnipeg have the lowest,” said Tighe.

“Not surprisingly, Vancouver and Toronto also have the highest average rental rates for 2014 with the average one-bedroom rental in Vancouver at $1,198 and Toronto at $1,168.”

The report also found that cap rates for multi-family properties continue to hold at the lowest level of all commercial real estate asset classes due to significant demand for well-located buildings.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?