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THE TECH-DRIVEN SHIFT

INNOVATION, INVESTMENT, AND THE FUTURE OF APARTMENT LIVING

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TECHNOLOGY IS DRIVING THE FUTURE

2025 has been anything but quiet. As we close out a year defined by tariffs, elections, labour shortages, and broader economic upheaval, the future is beginning to take shape. Demand for rental housing continues to outpace supply, with affordability pressures weighing heavily on households. Yet, alongside these challenges, a powerful combination of government investment and technological innovation is reshaping the sector’s trajectory.

Budget 2025 committed $25 billion in new housing measures, including $13 billion for the flagship Build Canada Homes initiative, aimed at doubling the pace of construction over the next decade.

Complementary programs such as the Apartment Construction Loan Program and the Build Communities Strong Fund are expanding financing options and strengthening housing-enabling infrastructure— from transit to water systems—laying the groundwork for more resilient communities. Together, these measures signal a renewed commitment to tackling Canada’s housing supply gap.

Technology is proving just as transformative. Digital platforms are streamlining rental management, as Proptech innovations are enhancing efficiency and lowering costs. Meanwhile, advances in construction, including modular housing and office-to-residential conversions, are accelerating delivery timelines and diversifying the types of rental supply coming to market. These tools are not only modernizing operations but also helping to bridge the affordability divide.

In this issue, we explore these shifts and more, highlighting the policy frameworks, technological breakthroughs, and some new rental projects now underway. Together, they paint a picture of a sector in transition: one that is navigating turbulence but also embracing opportunity.

As the year draws to a close, we wish you a joyful holiday season and look forward to continuing the conversation in 2026.

Sincerely,

Erin Ruddy

Editor Erin Ruddy

Art Director Annette Carlucci

Graphic Designer Thuy Huynh-Guinane

Production Coordinator Ines Louis

Contributing Writers Ellen O’Connor

National Sales Andrea Almeida Ron Guerra

Digital Media Director Steven Chester

Circulation Adrian Holland For sales information call (416) 512-8186

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Q4 Rental Market Update

Investment demand continues to outpace available supply

Canada’s apartment market is showing signs of shifting under the weight of broader economic uncertainty and evolving immigration policy. With the federal government lowering targets for international students, temporary workers, and permanent residents, rental demand is beginning to soften in certain segments.

This adjustment is particularly evident in recently constructed buildings, where landlords are finding it more challenging to fill units at premium rents. At the same time, demand remains resilient in the lower rent market segment, underscoring the affordability pressures many households continue to face.

Like last quarter, some landlords are offering incentives to attract tenants in this more competitive environment. Still, tenant turnover rates remain below the long-term average.

“Many renter households are reluctant to move, as relocating often means facing markedly higher rents compared to their current lease,” noted Keith Reading, Director of Research at Morguard. “This dynamic has contributed to relatively stable occupancy levels, even as rents across the country continue to hover at or near record highs.”

Investment trends

From an investment perspective, the market remains healthy and appealing. Investors have shown strong interest in acquiring purpose-built rental properties, with transaction volumes rising for two consecutive quarters in the second and third quarters of the year.

Acquisition pricing has largely stabilized, providing greater confidence for buyers and sellers alike. However, investment demand continues to outpace available supply, creating a competitive bidding environment. This imbalance suggests that while rental demand may be moderating in some areas, the long-term fundamentals of Canada’s apartment market remain attractive to capital, particularly given the ongoing shortage of affordable housing options nationwide.

New & Notable Transactions

Source: Morguard

Rent Growth Still Facing Headwinds

The average asking rent for residential properties in Canada fell 2.2 per cent year-over-year in October to $2,105, marking the 13th consecutive month of annual declines, according to the latest data from Rentals.ca and Urbanation. While rents continued to ease, the October decline was the smallest in nearly a year, suggesting the downturn may be moderating.

Average asking rents remain 6.2 per cent higher than three years ago and 14.0 per cent above pre-pandemic levels in October 2019.

“Rent decreases in Canada are generally letting up, with rents basically unchanged in October compared to a year ago, when excluding B.C. and Alberta,” said Shaun Hildebrand, President of Urbanation. “In the near-term, the rental market will continue to face headwinds from slowing population growth, elevated unemployment, and rising apartment completions.”

Month-over-month, asking rents slipped 0.9 per cent to reach an eight-month low. Purpose-built apartments declined 0.7 per cent annually to $2,085, while condos and other secondary rentals saw

sharper drops of 4.3 per cent and 4.7 per cent, respectively. Onebedroom units recorded the largest annual decrease at 3.4 per cent, while three-bedroom units were nearly flat at -0.2 per cent. Notably, three-bedroom purpose-built apartments rose 3.5 per cent to $2,767, contrasting with studio condos, which plunged 14.2 per cent to $1,609.

Nationally, apartment rents fell 1.3 per cent, led by British Columbia (-5.8 per cent) and Alberta (-5.3 per cent). Ontario rents declined 2.2 per cent, Quebec 1.4 per cent, and Nova Scotia 0.2 per cent, while Saskatchewan and Manitoba posted gains of 1.8 per cent. Compared to two years ago, B.C. rents are down 9.6 per cent and Ontario 7.5 per cent, with Saskatchewan leading growth at 24.0 per cent.

All six of Canada’s largest cities reported annual rent declines. Vancouver led with a 7.4 per cent drop to $2,728, followed by Calgary at -7.2 per cent to $1,851. Toronto rents fell 3.3 per cent, Edmonton 3.4 per cent, Ottawa 1.9 per cent, and Montreal 1.6 per cent. Vancouver and Toronto rents hit multi-year lows, down more than 11 per cent and 13 per cent compared to three years ago.

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Scaling Supply With Smarter Tools

Build Canada Homes offers more ways to fast track housing

development

In September 2025, the federal government unveiled Build Canada Homes, a landmark initiative designed to transform the pace and scale of housing construction nationwide. The program seeks not only to expand supply but also fundamentally reshape how homes are built. By prioritizing modern methods, such as modular and prefabricated construction, the agency aims to shorten timelines, reduce costs, and foster a more efficient, resilient housing industry.

Build Canada Homes will double the pace of homebuilding in Canada,” said Sean Fraser, Minister of Housing, Infrastructure and Communities. “By working with provinces, municipalities, Indigenous partners, and developers, we will deliver affordable homes faster, using modern construction methods that reduce costs and timelines. This is about building not just houses, but communities where Canadians can thrive.”

For rental apartment developers, the implications are significant: expanded financing, reduced barriers, and new opportunities to partner directly with government in shaping affordable housing. Backed by $13 billion over five years within a broader $25 billion package, the agency will accelerate construction of transitional, supportive, community, and middle class housing.

Accessing Federal Loans

The program opens several new avenues for rental housing providers:

1. Expanded financing. The Affordable Housing Fund’s New Construction Stream receives a $1.5 billion boost, giving shovel ready rental projects rapid access to federal loans and reducing uncertainty.

2. Infrastructure support. Linked to the $51 billion Build Communities Strong

Rental Sector Reacts to Budget 2025

Canada’s 2025 federal budget signals a renewed push to accelerate housing construction, placing supply at the centre of the economic agenda. For apartment owners and developers, the picture is mixed: some measures offer meaningful support, while others raise questions about long term viability.

A major announcement is the Build Communities Strong Fund, which will support housing enabling infrastructure in provinces that cost match federal contributions and reduce development charges. David Hutniak, CEO of LandlordBC, welcomed the move, noting municipalities have long relied on new development as a revenue stream—a policy he considers flawed. He also praised continued funding for the Apartment Construction Loan Program (ACLP), though some had hoped for more. The budget’s $13 billion allocation to Build Canada Homes reinforces Ottawa’s intent to scale up housing supply.

Financing access is set to improve with the planned increase in the Canada Mortgage Bond issuance limit to $80 billion in 2026, lowering borrowing costs for rental projects. The budget also eliminates the Underused Housing Tax (UHT) and defers bare trust reporting requirements, easing administrative burdens for landlords.

Immigration measures present a more complex picture. The new 2026–2028 Immigration Levels Plan caps permanent resident admissions at 380,000 annually and reduces student visas to 155,000 in 2026. While this may ease rental demand and cool rents, Hutniak and others warn it could erode the business case for new purpose built rentals. Viler Lika, CEO of SingleKey, added that fewer international students could hurt small landlords in university towns.

Despite concerns, industry leaders remain cautiously optimistic. Tony Irwin, President of Rental Housing Canada, called the budget “encouraging steps” toward addressing housing challenges, emphasizing the need for faster approvals and lower costs. Lika agreed, noting new incentives could shift developer focus from condos to purpose built rentals, boosting supply and stabilizing prices.

The government also plans to discontinue the Canada Secondary Suite Loan Program, which never gained traction. While some argue secondary units could have helped affordability, most agree the new measures will have a more meaningful impact.

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“Build Canada Homes is a central part of our housing response. By financing, building, and accelerating affordable homes nationwide, we are tackling Canada’s housing crisis with the scale and urgency it demands.”

- Prime Minister Mark Carney

Fund, provinces must cost match and reduce development charges, lowering costs for developers while ensuring housing enabling infrastructure like roads and transit keeps pace.

3. Rental preservation. A $1.5 billion allocation to the Canada Rental Protection Fund allows community housing groups to acquire at risk rental buildings, stabilizing the market and supporting long term affordability.

Technology and Innovation

Build Canada Homes prioritizes public private collaboration, inviting developers to align projects with national affordability goals. Crucially, it emphasizes technological transformation to “catalyze a new Canadian housing industry.”

Developers are encouraged to adopt modular and prefabricated techniques, manufacturing units off site for rapid assembly. This approach reduces timelines by months, cuts labour costs, and minimizes neighbourhood disruption.

Beyond modular construction, the program also champions digital design tools, advanced project management software, and green building technologies. The integration of Building Information Modeling (BIM) streamlines planning, reduces errors, and optimizes material use, while sustainability incentives encourage energy efficient systems, smart technologies, and low carbon materials. Developers who adopt modular methods, digital workflows, and affordability mandates early will gain a competitive edge, as efficiencies—shorter timelines, lower costs, and improved quality—enhance project viability. At the same time, profitability must be balanced with community integration and affordability standards.

Applications to Build Canada Homes are managed through the federal agency’s official portal, with opportunities issued via Requests for Qualifications (RFQs) and project calls. Developers demonstrating readiness to deliver housing at scale, embrace modular and prefabricated construction, and align with affordability and sustainability goals will be best positioned to secure financing and land access.

Capitalizing on Flexibility

The business case for short-term rentals

by Ellen O’Connor, Marketing & Leasing Manager, Accora Village (Ferguslea Properties)

As housing needs evolve across Canada, short-term rentals (STRs) are gaining traction among professionals on assignment, relocating families, and travellers seeking flexible, home-like accommodations. Unlike hotels or year-long leases, STRs offer convenience, comfort, and adaptability, making them an increasingly popular choice.

Between 2017 and 2023, the number of STRs in Canada surged by nearly 60 per cent, reflecting a broader shift in how people live, travel, and work. This rapid growth is prompting property managers to reconsider their strategies and explore the potential of short-term rental models. However, transitioning from long-term to short-term rental management requires a clear understanding of regulatory frameworks, operational shifts, and financial trade-offs.

Meeting the demand

According to the Canada Mortgage and Housing Corporation (CMHC), STRs are most

common in neighbourhoods with strong transit access and proximity to downtown amenities. Their affordability and high turnover potential allow owners to generate consistent income without relying on premium rents. Their appeal includes:

• Flexible Terms – they are ideal for seasonal stays, work assignments, or family visits;

• Low-Commitment Trials – they provide an easy way for prospective residents to test a city before committing;

• Fully Furnished Convenience – enabling turnkey living for those avoiding furniture purchases or moves.

Local rules and zoning

In Canada, municipalities impose a range of restrictions on short-term rentals (STRs), including licensing fees, zoning limitations, and specific tax requirements, all of which can impact profitability and scalability. To remain compliant and avoid financial penalties, property managers should secure and renew all necessary permits, declare rental income and remit applicable taxes such as HST or GST, stay informed about evolving local bylaws and clearly communicate rules to guests— such as quiet hours, parking, and recycling protocols—and foster community trust by engaging with neighbours, addressing concerns, and promoting local businesses to visitors.

Operational considerations

Transitioning to STRs involves more than regulatory compliance—it demands operational agility and consistent service delivery. One of the most significant shifts is in staffing. With higher turnover rates, STRs require more frequent housekeeping and maintenance to ensure units remain clean, functional, and ready for incoming guests. This proactive approach also helps identify and address issues like water damage before they escalate.

Technology also plays a critical role in STR operations. Dynamic pricing tools are essential for optimizing rental rates during peak seasons or local events, particularly in high-demand areas such as downtown cores or beachside communities. These tools allow property managers to respond quickly to market fluctuations and maximize revenue potential.

ROI and revenue models

While STRs offer the potential for higher gross revenue, they also come with increased operational costs and management demands. Compared to long-term rentals, STRs benefit from higher nightly rates and flexible pricing strategies, but they rely heavily on tourism trends and seasonal demand. Furnishing requirements are more extensive, with fully equipped units demanding greater upfront investment. Maintenance is more frequent due to guest turnover, and specialized insurance policies are often necessary to cover short-term risks.

In contrast, long-term rentals provide steady income, lower setup costs, and reduced management intensity. Before making the shift, property managers should conduct detailed

occupancy forecasts and cost-benefit analyses to determine whether the STR model aligns with their financial goals and market conditions.

Resident and neighbour experience

In mixed-use or multi-unit communities, maintaining a positive experience for both short-

term guests and long-term residents is essential. Property managers should establish clear property rules and expectations, communicate noise and conduct policies transparently, and maintain open channels for feedback and concerns. Reinforcing a sense of community and mutual respect helps foster a welcoming environment and minimizes friction between different types of tenants. A well-managed resident experience not only enhances the property’s reputation but also reduces turnover and builds long-term tenant loyalty.

Building a sustainable STR strategy

Successfully integrating STRs into a property portfolio requires strategic planning, adaptability, and continuous performance review. Property managers who monitor guest feedback, stay informed about local regulation changes, and refine operational systems are best positioned to sustain profitability and long-term success. By balancing short-term opportunities with longterm stability, STRs can complement traditional leasing models and evolve alongside shifting market demands.

Compliance Comparison: STR vs. Long-Term Rentals

New policy paper proposes Revolving Fund Unlocking Affordable Housing Development in Ontario

by Erin Ruddy

A policy paper published in November presents a practical approach to addressing a significant obstacle to affordable rental housing in Ontario: early-stage financing. As the province approaches 2026, the progress of housing developments is increasingly hindered by insufficient funding for predevelopment and initial costs— expenditures that are essential for moving projects forward but frequently result in delays prior to construction.

Currently, affordable housing projects can access funding from four levels of government—federal, provincial, regional/county, and municipal—but most programs focus on construction and longterm debt. Only a handful of federal programs support predevelopment work, and these typically provide nominal amounts that fall short of covering full due diligence and feasibility costs.

The report, prepared by global consultancy Arcadis for WoodGreen Community Services and the Building Industry and Land Development Association (BILD), proposes a provincially backed Affordable Housing Revolving Fund (AHRF) that would provide low-interest loans to cover early-stage expenses such as design work, technical studies, application fees, and business case preparation.

“Right now, promising housing projects are stalling due to inadequate predevelopment and upfront investment capital,” said Mwarigha, Vice President of Housing Growth, Development & Asset Sustainability at WoodGreen. “The AHRF would give both non-profit and purpose-built rental developers the financial foundation they need to leverage long-term lenders and scale up mixed-income affordable housing in Ontario.”

According to a September 2024 study by Altus Group Economic Consulting, construction delays can cost between $2,673 and $5,576 per unit per month depending on the municipality. Streamlined access to predevelopment funding could shorten timelines by up to 18 months, reducing costs and accelerating delivery.

“Securing reliable predevelopment funding is challenging for many rental housing developers,” noted Tony Irwin, President & CEO of the Federation of Rental-housing Providers of Ontario (FRPO). “The AHRF model can bridge this gap so that private and non-profit developers can initiate more mixed-income rental housing that is urgently needed across Ontario.”

By offering flexible loan amounts, interest rates, and repayment schedules, the AHRF would reduce the equity shortfall that often prevents projects from advancing. Its selfsustaining design ensures repayments flow back into the fund, creating a continuous pipeline of capital for future developments.

“This model can play a pivotal role in meeting rental housing targets,” said Dave Wilkes, President & CEO of BILDGTA. “It provides certainty in the rental housing market for both private and non-profit developers to pursue viable mixed-income housing projects.”

“The Affordable Housing Revolving Fund gives non-profit housing providers the upfront support they need to secure reliable financing during the critical pre-development phase,” added Marlene Coffey, CEO of the Ontario Non-Profit Housing Association. “With predictable early-stage funding, our sector can scale up development, get projects shovel-ready faster, and help Ontario reach its goal of 1.5 million homes. It’s a practical tool that helps us do what we do best.”

What’s next

The AHRF remains in its proposal phase, with several components requiring further assessment in a future business plan. Key considerations include:

• Overseeing body: likely a third-party entity backed by the Government of Ontario.

• Investment structure: how initial capital will be raised, whether outside investors are permitted, and terms of repayment and returns.

• Eligibility: whether the fund will be open to both non-profit and for-profit developers.

• Coverage: clear criteria for eligible costs and project phases.

• Financial parameters: appropriate loan amounts (proposed at 5–10% of project costs), feasible interest rates, and repayment timelines.

• Fund management: whether it could operate like an endowment to balance project financing with long-term sustainability, while safeguarding against early withdrawals and maintaining its revolving nature.

Sector leaders are urging the Province of Ontario to adopt the recommendations and work with housing partners to launch the AHRF. By addressing the financing gap at the earliest stage, the fund could accelerate development and unlock the scale of affordable rental housing Ontario urgently requires.

Read the full policy paper at woodgreen.org/AHRF.

91 Pippin Road, Concord, ON L4K 4J9

Tel: 905-660-2353 / 905-669-8888

Toll Free: 1-888-660-2353

Fax: 905-660-8390 / 1-888-660-8390 sales@multitech2000.com

WHERE INNOVATION ELEVATED LIFESTYLE

West House sets the standard for luxury living in Toronto’s King West neighbourhood

INNOVATION MEETS LIFESTYLE

Global real estate firm Hines has officially introduced West House, its latest multifamily development at 88 Bathurst Street in Toronto’s vibrant King West neighbourhood. With leasing now underway, the project marks a significant addition to the city’s luxury rental market, setting a new standard for high-end living in one of Toronto’s most dynamic urban districts.

Strategically positioned in the heart of King West, West House delivers a nextgeneration standard of rental housing. The 307-unit residence was designed by

internationally acclaimed Danish architecture firm 3XN, celebrated for its human-centric and sustainable design ethos.

According to Syl Apps, Senior Managing

Director and Head of U.S. Midwest and Canada for Hines, every aspect of West House’s architecture and programming has been carefully designed to meet the growing demand for upscale, lifestyle-oriented housing, guided by long-term foresight and a future-ready vision.

“West House reflects Hines’ commitment to delivering best-in-class rental housing where design excellence, lifestyle, and community intersect,” Apps said. “The building’s strong leasing performance since launch underscores the market’s appetite for elevated, lifestylecentered homes in Toronto’s most soughtafter neighbourhoods.”

Lifestyle-centered amenities

West House offers an extensive suite of amenities designed to enrich residents’ daily lives and foster community connection:

• Rooftop retreat with panoramic 360-degree views of Lake Ontario and the Toronto skyline

• 25,000-square-foot club floor featuring a full-service fitness centre, outdoor exercise zones, and wellness spaces

• Coworking hub with private meeting rooms and quiet focus areas for hybrid work lifestyles

• Speakeasy-style lounge for social gatherings and curated events

• 24/7 lifestyle services to support convenience, comfort, and peace of mind

In a major commercial milestone, Hines also secured a 38,000-square-foot lease with luxury fitness brand Equinox earlier this year, anchoring the property as a premier lifestyle destination and reinforcing its position as a flagship example of integrated urban living.

Spaces that flow, connect and inspire

3XN’s architectural vision for West House is rooted in movement, natural light, and connection. The firm applied its signature Scandinavian simplicity and sculptural forms to create a residence that feels intuitive, uplifting, and distinctly modern.

The building’s interiors, designed by Chicago-based Soucie Horner, are shaped around fluid circulation paths, soft natural materials, and strategic sightlines that bring daylight deeper into the space. Inside the club floor, fitness, wellness, work, and entertainment areas unfold organically across the level, allowing residents to transition seamlessly from one part of their day to the next.

“3XN and Soucie Horner’s design for West House prioritizes how people live,” Apps explained. “Our goal was to strike the right balance between sophistication and comfort — to create a home that supports and elevates our residents’ daily lives.”

The adaptable layouts and amenity zones reflect Hines’ long-term commitment to futureready, lifestyle-driven development. Whether for hybrid work, wellness-focused living, or community programming, the building is designed to evolve with its residents.

Sustainability as a standard West House integrates sustainability into both its architecture and operations, setting a forward-thinking benchmark for environmentally responsible urban living.

The building is designed to achieve LEED Silver certification, with solutions such as highperformance glazing, energy-efficient HVAC and lighting systems, EV charging stations, and secure bike storage supporting reduced environmental impact and enhanced resident comfort.

Rooftop and amenity spaces feature durable, sustainable materials chosen for longevity and aesthetic warmth. Residents also benefit from thoughtful conveniences such as in-suite recycling and composting, smart home systems, and energy-efficient appliances.

“With West House, sustainability and luxury go hand in hand,” Apps noted. “We’ve integrated performance-driven features that elevate the resident experience while reducing long-term environmental impact.”

A

new benchmark for Toronto living

As Toronto’s rental market becomes increasingly competitive, West House stands

out for its layered approach to lifestyle: design that inspires, amenities that enrich, services that simplify, and a location that places residents at the center of one of the city’s most iconic neighbourhoods.

“It is a building created for the next generation of urban living — where culture, community, and contemporary elegance converge,” Apps said.

For Hines, West House is more than a multifamily development. It is a statement: that luxury rental living in Toronto can be thoughtful, experiential, and deeply connected to its neighbourhood. A place where residents’ lives flow with ease — and where every detail is designed to feel exceptional.

Top construction trends of 2025

Downtown Toronto is currently a showcase for cutting-edge construction technology, with smart building methods, sustainable materials, and massive infrastructure reshaping the skyline. From net-zero waterfront communities to AI-driven project management, the city is becoming a living laboratory for modern urban development.

Construction tech trends include:

• Smart infrastructure mapping: The City of Toronto uses T.O.INview, an interactive map that tracks ongoing and planned construction projects, integrating GIS data for real-time updates on road closures, utilities, and development.

• High-tech mega-projects: Developments like Quayside on the waterfront are pioneering net-zero, all-electric communities with mass timber construction, rooftop urban farms, and integrated community hubs.

• Iconic architecture & digital tools: Projects such as Frank Gehry’s Forma towers and BIG’s King Toronto rely on advanced 3D modelling, prefabrication, and digital twin technology to manage complex geometries and construction sequencing.

• Automation & robotics: Toronto’s construction industry is increasingly adopting offsite prefabrication, robotic surveying, and drone monitoring to reduce costs and improve safety.

• Sustainable materials: Mass timber, low-carbon concrete, and smart glass are being deployed across downtown projects, aligning with Toronto’s climate goals.

AI-driven methods are amplifying development in Toronto

Fire Safety Meets Smart Security

Navigating new standards and solutions on the road to compliance

by Erin Ruddy

Fire safety in Canadian apartment buildings is increasingly shaped by smart technology, enhanced regulatory standards, and targeted financial incentives. From advanced fire alarm systems to expanded carbon monoxide requirements and government programs that make upgrades more affordable, today’s measures go far beyond the traditional smoke detector.

Modern multi-sensor devices can accurately detect smoke, heat, and carbon monoxide, reducing false alarms while improving reliability. IoT integration connects these systems to building management platforms, security cameras, and smart thermostats, creating a unified safety network. Mobile apps add another layer of responsiveness, enabling instant alerts and rapid landlord action from anywhere.

This evolution reflects a broader transformation in building security. Johnson Controls, a global leader in smart building innovation, notes that the industry is shifting from reactive approaches to preventative strategies. Drawing on listening sessions with industry leaders and customers, the company recently outlined the forces shaping the future in its report Seven Forces Driving the Next Era of Security. Key trends include video analytics powering business intelligence, lifecycle-

based budgeting, AI guided by human oversight, consumer-grade user experiences, mobile-first identity and access, multisensory detection technologies, and ESG-aligned efficiency.

“Modern security demands more than just reactive measures—it requires intelligent, scalable solutions that integrate seamlessly across operations,” said Greg Parker, vice president of regional lifecycle solutions, Americas at Johnson Controls. “By combining

AI-driven incident management with human expertise, we’re empowering organizations to transform their security response systems into strategic operations that inform broader business decisions. Today more than ever, security solutions are essential to resilience, smarter operations, and growth.”

Financial incentives

Although upgrading systems can be expensive, Canadian apartment owners have access to financial support that can help make fire safety improvements more affordable. Through the federal government’s Home Accessibility Tax Credit, eligible safety renovations like visual smoke and carbon monoxide alerts qualify for a 15 per cent refundable credit. Additionally, the Multigenerational Home Renovation Tax Credit offers up to $50,000 for upgrades to secondary suites, which includes both fire safety and accessibility improvements.

Beyond tax relief, many insurers now lower premiums for properties equipped with advanced fire protection systems, rewarding proactive investment in tenant safety. Government-backed loans through programs like the Small Business Financing Program also help apartment owners fund large-scale upgrades, making it easier to modernize alarms, sprinklers, and monitoring systems. Together, these incentives can significantly reduce the financial burden of adopting cuttingedge fire safety technology, while encouraging landlords to prioritize both tenant protection and long-term building resilience.

Ensuring compliance in 2026

Across Canada, all provinces are moving toward alignment with the National Fire Code, prioritizing standardized inspections, clearer documentation, and the integration of new technologies. Ontario, however, will be introducing significant Fire Code updates this January.

“To ensure continued compliance with the updated Fire Code requirements, building operators are strongly encouraged to consult with their fire and life safety consultant,” said Kristin Ley, Partner, Cohen Highley LLP Lawyers. “A thorough review of the forthcoming changes will help identify any necessary adjustments to procedures and reporting and ensure that all life safety equipment is up to date. Early engagement will also help avoid potential compliance issues as the new regulations come into force.”

Key updates include:

• Exit Doors: All exit doors—whether designated as required exits or not— must comply with standards for locking, latching, and fastening. Mechanisms must either be approved by the Chief Fire Official or incorporate a simple release for safe egress.

• Inspection Standards: Ontario will adopt national standards ULC-S536 and ULC-S537 for fire alarm inspection and verification. Reports must follow a standardized format, with detailed documentation and functional battery testing.

• Technology Integration: Voice evacuation systems and wireless carbon monoxide detectors must be included in testing protocols. Deficiencies must be documented separately, and attendance logs standardized.

• Access Tools: Keys or specialized tools needed to operate fire alarm systems must be readily available to supervisory staff at all times.

• Carbon Monoxide Alarm Placement: Buildings with forced-air fuel-burning appliances must install CO alarms outside

each sleeping area, on every storey without a sleeping area, in appliance service rooms, and in public corridors heated by the appliance.

• Monitoring Compliance: Owners of monitored fire alarm systems must obtain documentation confirming compliance with NFPA 71 or CAN/ULC-S561 standards. Integrated systems must be tested under CAN/ULC-S1001.

Beginning January 1, 2026, Ontario municipalities will also gain authority to issue fines for Fire Code violations using Administrative Monetary Penalties (AMPs). Penalties can apply to tenants, property owners, corporations, and other responsible parties. To avoid fines and stay ahead of changes, Ley advises apartment owners to audit all building systems and procedures now, ensuring documentation and equipment meet the new standards before the deadline.

For a complete list of changes, refer to Regulation 87/25 under the Ontario Fire Code.

Industry Hot Topics

Insights from Yardi’s Q4 Multifamily Report

With vacancy rates climbing, rent growth slowing, and the smallest second-quarter population increase in nearly eighty years, Canadian apartment owners are facing a cooling rental market. Still, according to Yardi’s latest Multifamily Report, it’s not all bad news. Demand remains solid in many urban centres, offering cautious optimism for operators and investors despite six consecutive quarters of rent growth deceleration.

“After several years of above-trend rent increases, growth is diminishing,” Yardi analysts wrote—noting that the average national in-place rent rose by $14 in Q3 2025 to $1,734, while the annual growth rate declined 90 basis points from the previous quarter to 3.9 per cent. In-place rents reflect the aggregate of all rents within a given Census Metropolitan Area (CMA), including new leases, renewals, and existing agreements.

Regionally, Halifax led the country with 5.9 per cent year-over-year rent growth, buoyed by its expanding technology sector. Edmonton (4.9%), Saskatoon (4.7%), and Montreal (4.6%) also posted strong gains. At the other end of the spectrum, Calgary (1.1%), Kitchener–Cambridge–Waterloo (3.1%), and Toronto (3.2%) recorded the slowest increases.

This isn’t a surprise given the backdrop of economic turbulence. Since Q2, tariffs imposed by Canada’s largest trading partner have

weighed heavily on exports—especially steel and aluminum. Moody’s Analytics estimates the effective tariff rate at 12 per cent, prompting the Bank of Canada to cut its benchmark interest rate to 2.50 per cent in an effort to stimulate consumer activity.

While GDP posted a modest 0.2 per cent gain in July—driven by mining, manufacturing, and wholesale trade—this followed a sharp 1.6 per cent annualized contraction in Q2, largely due to a 7.5 per cent drop in exports. Employment figures have also faltered, with job creation averaging just 8,000 per month year-to-date, well below the long-term norm. However, a strong September showing offers a glimmer of hope for recovery.

Lease-over-lease rent growth continued to decline in Q3 2025. The rate fell to 2.4 per cent, down 40 basis points from the previous quarter and sharply lower than the 9.1 per cent recorded in Q3 2024. Yardi notes that this deceleration reflects a combination of slowing population growth and reduced affordability following several years of elevated rent increases.

Of the major markets, Calgary maintains the highest vacancy rate at 5.8 per cent, though it declined 90 basis points quarter-over-quarter. Winnipeg (2.4%) and Halifax (2.8%) posted the lowest rates, while Toronto’s bachelor unit vacancy rate climbed to 8.9 per cent.

Montreal saw the largest quarterly increase, with its vacancy rate rising 100 basis points to 5.6 per cent. The city added 3.3 per cent to its purpose-built rental stock in 2024 and another 2,136 units in Q1 2025, according to CMHC. Despite this influx, rent growth remains strong, with in-place rents up 4.6 per cent year-over-year.

Shifts in immigration policy have further influenced housing demand, contributing to softer rent growth and increased turnover. The national annual turnover rate rose to 25.0 per cent in Q3 2025— up 220 basis points year-over-year and the highest level in three years. Turnover increased quarter-over-quarter in every major market except Calgary, reflecting loosening conditions driven by reduced immigration and a weaker job market.

At the same time, tenant tenure is lengthening: the average length of stay rose to 36 months nationally, up from 34 months a year earlier. Tenants stay longest in Toronto (47 months), Hamilton (41), and Halifax (40), and shortest in Calgary and Saskatoon (26).

Despite legislative efforts to accelerate housing development, CMHC forecasts a decline in purpose-built rental starts in 2025 compared to 2023 in Vancouver, Toronto, and Ottawa. In contrast, Calgary, Edmonton, and Montreal are expected to see increases, highlighting regional differences in construction activity and market fundamentals.

Renewal lease rates—typically more stable due to provincial rent control—also showed signs of cooling, falling 40 basis points to 3.0 per cent nationally in Q3. Calgary, which does not impose rent control, saw renewal rates turn negative year-over-year at -2.2 per cent. The city’s elevated level of new deliveries and slowing immigration are contributing to this downward pressure.

Vancouver joins global accelerators to boost climate resilience

The City of Vancouver officially joined the C40 Cool Cities Accelerator and UN-Habitat’s Urban Planning Accelerator as it focuses on building climate-resilient communities. The announcement was made at the C40 World Mayors Summit, held earlier this month in Rio de Janeiro.

“C40 has been an incredible partner for cities around the world,” said Vancouver Mayor Ken Sim. “Through many of our City’s major initiatives, we’re taking meaningful steps to make Vancouver a greener, safer and more resilient city. We’re proud to work alongside other leading C40 cities to keep pushing this important work forward.”

The C40 Cool Cities Accelerator is a new global coalition of cities taking urgent action to tackle one of the most dangerous impacts of the climate crisis: extreme heat.

Extreme heat is already the deadliest weather-related hazard worldwide, responsible for an estimated 489,000 deaths annually. Without decisive action, the number of people exposed to life-threatening urban heat is projected to increase fivefold by 2050.

“Extreme heat is a silent killer and an increasingly urgent global threat,” said Mark Watts, executive director of C40 Cities. “The number of days that major capitals experience temperatures above 35°C has increased 54% over the past twenty years. Cities like Vancouver are showing real leadership by taking practical steps to protect communities, safeguard economies and create more livable urban environments. By aligning with the UN Secretary-General’s call to action on extreme heat, these cities are helping to set a global standard for what bold, collective climate leadership looks like.”

As part of this commitment, Vancouver will advance actions to:

• Strengthen early warning systems and expand access to cooling solutions during heat emergencies;

• Update building codes, increase shade and tree canopy and futureproof critical infrastructure; and

• Identify near-term ways to provide indoor cooling for existing buildings that are most at-risk to overheating.

Meanwhile, the Urban Planning Accelerator is a joint initiative by C40 and UN-Habitat aimed at helping cities around the world transition to a climate-responsive urban planning model by 2035.

C40 and UN-Habitat will work closely with signatory cities, fostering city-to-city knowledge exchange, documenting best practices, and monitoring progress toward the Accelerator’s targets through consistent follow-up and reporting.

Through the Vancouver Plan and the Vancouver Official Development Plan (ODP), the City is integrating sustainability and climate-responsive design into how Vancouver grows.

The Urban Planning Accelerator strengthens these efforts and complements the Vancouver Plan and the

Three Big Ideas by delivering:

1. Equitable housing and complete neighbourhoods.

2. An economy that works for all.

3. Climate protection and restored ecosystems.

Vancouver is implementing the Three Big Ideas through initiatives such as multiplex zoning, the Villages Planning Program and citywide emissions-reduction efforts.

ODP’s

The Indigenous Hub Rises in Toronto’s Canary District

Positioned to become both a cultural and architectural landmark, The Indigenous Hub is a 40,000-square-foot mixed-use development in Toronto’ Canary District. When complete, the project will occupy an entire downtown block, featuring a community health centre as its centrepiece, and two mid-rise residential towers.

Designed as a template for inclusive, land-conscious urban architecture, the project is led by Anishnawbe Health Toronto (AHT)—the city’s only fully accredited community health centre governed by Indigenous leadership and dedicated to meeting the unique needs of Indigenous communities. The initiative also brings together Miziwe Biik, a leader in Indigenous

employment and training, alongside a development consortium that includes Dream Unlimited, Kilmer Group, and Tricon Residential.

The Hub is the culmination of more than two decades of work by the late Joe Hester, who served as AHT’s executive director for many years. His vision was to create a space that could serve Toronto’s approximately 70,000 Indigenous residents. The result is a development that integrates culturally grounded health care, education, childcare, training opportunities, commercial spaces, and housing—all within a single community.

Situated on ancestral lands once used as hunting grounds by Indigenous peoples since the recession of the glaciers, the site carries deep historical resonance. Ontario’s transfer of the 2.4-acre property to AHT—an act Hester described as a “return”—offered a rare opportunity to establish a centre for urban Indigeneity and inclusivity in the heart of the city.

“We wanted to bring an architecture to the Toronto landscape that represents us culturally, which then, of course, our community would see as something they could be proud of,” Hester explained. “The interior spaces had to be able to facilitate our cultural approaches to health and healing because our ceremonies are very important to the healing process.”

Architecturally, the Hub will feature an eight-storey podium linking Canary House and Birch House, with mid-rise towers rising 13 and 11 storeys. Together, they will provide about 400 residential units, alongside the Miziwe Biik Training Institute, a civic plaza, and the central Indigenous Peoples Landscape.

Landmark co-op project underway in Scarborough

Anew co-op rental housing project recently broke ground in Scarborough, Ontario—the first major non-profit co-op initiative in Toronto in over 20 years. Funded by the $1.5 billion Co-operative Housing Development Program, this is the largest federal investment in new co-op housing in more than three decades.

“Too many working households in Scarborough earn a good living yet are priced out and pushed out of the very communities they belong to,” said Daniel Ger, CEO, Options for Homes. “This milestone funding demonstrates what is possible when non-profits and government align to deliver housing that meets the diverse needs of working households.”

Located near Markham Road and Eglinton Avenue East, the Cedars South Tower will rise 21 storeys and provide 245 below-market and rentcontrolled co-op rental homes. It is the first phase of The Cedars, a masterplanned community that will eventually include 783 homes across three additional towers and townhouses. Future phases will expand the mix of housing options, including attainable homeownership opportunities, ensuring that the community serves a diverse range of households.

Construction on the tower is expected to be completed by 2028.

The Cedars South Tower is being designed with sustainability and accessibility at its core. A geothermal heating and cooling system will reduce energy consumption by 50 per cent and greenhouse gas emissions by 80 per cent compared to Tier 1 of the 2020 National Energy Code for Buildings. Twenty per cent of units will meet CMHC accessibility standards, while all common areas will be barrier-free, exceeding Ontario Building Code requirements. Options for Homes is also partnering with YWCA and Community Living Toronto to dedicate 20 per cent of units to

residents supported by these social service agencies.

Affordability has been secured for the long term through a partnership with the City of Toronto. The land was purchased from the City through CreateTO with obligations to provide below-market housing. The City also waived development charges, property taxes, and permit fees, while fast-tracking approvals. As a result, affordability is guaranteed for 50 years, with 20 per cent of units meeting the City’s definition of Affordable Rental and 80 per cent classified as Rent-Controlled Units. Housing costs will remain at 80 to 90 per cent of Toronto’s average market rent for post-2020 builds.

GBO expands rental portfolio

Global real estate investment manager BGO has acquired The Camby, a newly built multi-family complex in Cambridge, Ontario, marking a significant expansion of its Canadian residential portfolio.

Completed in 2023 and 2024, The Camby comprises 284 units averaging 762 square feet, alongside 338 parking stalls. The property is nearing stabilized occupancy and benefits from direct access to Highway 401 and nearby public transit, connecting residents to employment hubs across the Kitchener-Waterloo-Cambridge (KWC) region and Greater Toronto Area West cities such as Milton and Mississauga.

“The Camby is thoughtfully designed to meet the needs of the growing population of the KWC corridor, offering a compelling blend of quality, connectivity, and lifestyle amenities that will support longterm tenant demand,” said Adam Hagedorn, Principal, Portfolio Management at BGO. “With The Camby being managed by BGO Living, residents will benefit from a professionally managed, peoplefirst rental experience that reflects our commitment to delivering exceptional service.”

Residents of The Camby enjoy a suite of upscale amenities, including a fitness centre, smart parcel lockers, pet spa, rooftop terrace with fire pits, entertainment lounge, games room, and multiple co-working spaces. Suites feature open-concept layouts with large kitchen islands, quartz countertops, stainless steel appliances, in-suite laundry, and smart technology such as Nest thermostats and keyless entry.

The property also incorporates sustainability measures, including hybrid heat pumps in all units, motion-sensor lighting in common areas, and enhanced monitoring of water, hydro, and thermal energy use.

Exploring the benefits of window-mounted heat pumps Electrification Without Renovation

by David Rames

Older multifamily buildings that weren’t designed for electric HVAC systems present a challenge for decarbonization and achieving Canada’s target of net-zero emissions by 2050. Conversion of gas-fired heating will be key to reducing operation emissions, driving demand for scalable technologies that can be deployed across a diverse range of multifamily buildings.

Plug-in, all-electric heating and cooling units are one market response. Windowmounted heat pumps can be practical where aging building infrastructure and limited mechanical space make retrofits difficult with traditional gas-based heating or even split heat pumps. They are well-suited to multifamily buildings that lack ductwork or electrical headroom.

The compact heat pumps require no refrigerant lines, drainage or electrical panel upgrades. They are low-impact pieces of equipment that a single technician should be able to install in fewer than 60 minutes, per unit, avoiding the costly, multi-day disruptions associated with split or ducted systems.

Window-mounted heat pumps come in a single, self-contained unit that typically runs on

a standard 120V/15A circuit, avoiding the need for expensive electrical panel modifications. They also have sealed refrigerant systems and internal condensate management.

While heat pumps have been around for decades, they’ve long had the reputation of poor performance in cold climates. However, today’s leading window heat pump models deliver 100% of rated heating capacity down

to about –15°C (5°F) and are specified for reliable operation down to –25°C (–13 °F). This may allow building owners to replace gas, oil or steam systems with a fully electric plug-in option, depending on the climatic region where they are situated.

Evidence from New York City’s ongoing retrofits to electrify aging subsidized housing reveals that traditional heat pump retrofits in multifamily buildings cost about USD $38,000 (CAD $52,000 per unit) when structural changes and electrical upgrades are factored in. Retrofits with window-mounted heat pump technology — conducted as part of an associated Clean Heat for All pilot project challenge — were completed at about one-third that amount. (Equating to roughly CAD $17,000 per unit.)

During the challenge, contractors installed 72 window heat pump units across 24 apartments in just eight days. That pace is nearly impossible with ductless or variable refrigerant flow (VRF) systems, especially in occupied units. Tenants experienced minimal disruption, while early data showed an 87% drop in energy use and a 50% reduction in heating costs compared to the previous heating system.

Other housing authorities and public agencies in the United States are now expressing interest in pursuing the option. This approach also aligns with Canada’s climate policy objectives, and several jurisdictions offer targeted support for heat pump retrofits.

In British Columbia, programs like CleanBC offer rebates for multi-unit residential buildings, while Ontario’s Save on Energy Retrofit program supports upgrades in mid- and high-rise properties. Affordable housing providers may also qualify for national programs such as Canada Mortgage and Housing Corporation’s Greener Affordable Housing initiative. These incentives help reduce upfront costs, accelerate adoption and make plug-in electrification more accessible across a range of housing types.

Electrifying existing multifamily buildings doesn’t have to mean tearing out walls or upgrading panels. In many cases, it can be achieved through compact, cost-effective equipment designed for the buildings we already have and the climate we live in.

David Rames is Senior Product Manager with Midea, an appliance manufacturer, including HVAC systems and heat pumps. For more information, see the website at https://nahvac. com/product/packaged-window-heat-pump.

FROM REACTIVE TO PREDICTIVE

How domestic innovation is reshaping Canada’s rental housing sector

As Canada’s rental housing providers navigate affordability pressures, sustainability mandates, and evolving tenant expectations, technology is emerging as a strategic lever. From AI-powered leasing to smart energy retrofits, Canadian tech suppliers are delivering solutions to help building owners future-proof their portfolios.

Tenant AI Assistants

Canadian platforms like Yuhu offer AIdriven communication tools that streamline maintenance requests, automate follow-ups, and centralize tenant interactions.

https://app.yuhu.io/

Automated Leasing Workflows

Labour shortages and rising service expectations have made automation essential. Tools like RentSync, based in Ontario, help property managers automate listings, syndicate across platforms, and manage leads with minimal manual input.

https://rentsync.com

Smart Parcel lockers

These systems offer more than convenience; they also enhance resident safety and while reducing front desk and concierge costs.

Snaile, a Canadian smart parcel locker provider, ensures secure, contactless delivery in multi-residential buildings—especially valuable in urban cores.

https://snailelockers.com

Digital Leasing & Payments:

Fintech tools appeal to younger renters and newcomers, helping housing providers differentiate in competitive urban markets.

SingleKey, based in Toronto, offers rent guarantee services and automated payment tracking, reducing risk for landlords and friction for tenants.

Smart Entry Systems

1VALET, headquartered in Ottawa, integrates mobile access, facial recognition, and package delivery into a single resident app—already deployed in buildings across Ontario and Quebec.

https://1valet.com

Rise of AI

According to the Real Estate Institute of Canada, AI is ranked among the top three technologies reshaping real estate, with over 500 companies globally providing AI-powered services to the sector. Canadian firms are part of this wave, especially in urban markets like Toronto, Vancouver, and Calgary.

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