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Decided to close up, as per my note above they weren’t making enough return contrary to what everyone thinks about greenfield development, it is not easy to make money. They did not go bankrupt or anything but decided not to continue and finished out their inventory.
 
IanO said:
edmontonjournal.com

How does Edmonton have a rental glut in the midst of a housing crisis?

Stats shows Edmonton rentals are available, and landlords are offering huge incentives. Why when all we hear about is a shortage of housing?
edmontonjournal.com edmontonjournal.com
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I'm shocked that they interviewed so many nonprofits and still didn't get anyone pointing out that the rental "glut" in Edmonton is not city-wide. It's in specific neighbourhoods and especially Downtown. Were I smarter with GIS, I would make a heat map.

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IanO said:
edmontonjournal.com

How does Edmonton have a rental glut in the midst of a housing crisis?

Stats shows Edmonton rentals are available, and landlords are offering huge incentives. Why when all we hear about is a shortage of housing?
edmontonjournal.com edmontonjournal.com
Click to expand...
Paywalled, but I can guess. Likely there are lots of market rate rentals, there is very little at the bottom of the market. The increase in housing costs has not been felt equally at all levels, the cheaper units have all but disappeared. Housing for folks/families making minimum wage, on income support, or disability supports is almost impossible to find. Especially large units for large low income families. But I can find a 2 bedroom for 2k really easily.
 
SarcasticMarmot said:
Paywalled, but I can guess. Likely there are lots of market rate rentals, there is very little at the bottom of the market. The increase in housing costs has not been felt equally at all levels, the cheaper units have all but disappeared. Housing for folks/families making minimum wage, on income support, or disability supports is almost impossible to find. Especially large units for large low income families. But I can find a 2 bedroom for 2k really easily.
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Maybe I missed it, but I didn't see any reference to the actual vacancy rate in this article, just mostly anecdotal comments about increasing incentives to rent which given some larger projects recently completed may not be a surprise as they want to fill their new buildings as soon as possible.

Yes, I suppose if the building trend keeps up and if fewer people move here, there could be a glut, but that is a couple of ifs and a could. Maybe the Journal headline writers missed the word "possible future" glut in their headline, their headlines have really become very lazy, sloppy and misleading.
 
David A said:
Maybe I missed it, but I didn't see any reference to the actual vacancy rate in this article, just mostly anecdotal comments about increasing incentives to rent which given some larger projects recently completed may not be a surprise as they want to fill their new buildings as soon as possible.

Yes, I suppose if the building trend keeps up and if fewer people move here, there could be a glut, but that is a couple of ifs and a could. Maybe the Journal headline writers missed the word "possible future" glut in their headline, their headlines have really become very lazy, sloppy and misleading.
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CMHC vacancy rates had downtown at around 3-5%, so it's not really a glut? Sure we got an influx of new projects with hundreds of units, but to call that a glut sounds weird. Falcon, Peak and Switch are quite full and it's just the Parks with its higher price points and being the last major one so far to open that has a large number of vacant units.
 

Peterson's Ashleigh defies Vancouver condo slowdown with ample amenities​


Sales for a three-building Peterson Group condo development in Vancouver remain steady in a slow market because of the project's boutique features, its vice-president of residential projects Barrett Sprowson suggests.

Unlike most low-rise condo projects, it will pack in amenities more often seen in highrises, including an entertaining room with a kitchen, a co-working space and community garden plots, Sprowson told RENX Homes.

At a time when sales statistics remain very low - October condo sales in Vancouver plunged by 23.1 per cent compared to last year - the expanded package of amenities has made Ashleigh Oakridge a standout to end-user buyers, Sprowson said. It has been enough of a pre-sale success for Peterson to forge ahead with the project.
 
MacLac said:
Ian, sounds like YYC is a major Grift Game going on now…….doesn’t sound so rosy according to this guy….

View attachment 701763
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I am skeptical of what he's saying. Selling MLI Select properties requires either paying off the full mortgage balance outright (which would be idiotic because MLI S has among the most competitive financing available in any market), or having a new owner purchase the place and take over the payments. The existing requirements and term (affordability, accessibility and energy efficiency) also have to be maintained by the new owner, and 10:1 odds it stays as a rental, not affecting the volume of rental DUs on market.

The point he's making is that the rental market weakening means these MLI-funded products will "flood the market". I really, really doubt any owners of these properties want to sell the properties, lose the full growth potential, and then pay capital gains (obviously no principal residence exemption) on any potential real revenue from the sale.

If people are panic selling, but it doesn't affect the availability of rentals, doesn't affect the affordability of rentals, and is a near-guaranteed payoff for longer-term holders, who besides small-scale builders with no risk tolerance are going to be impacted? I swear, it's like no one believes in economics anymore.
 
I think he’s talking about developers with new product flooding the market. It’s happening here too. Anything that is attractively priced is still selling but if you’re asking for a premium, with rents falling from even early 2025 rental rate predictions, the building will sit on the market for awhile.

I have been financing real estate for the last 23 years, IMO the MLI Select program is the the single biggest game changer I have ever seen in real estate financing. It has basically replaced any sort of “conventional” financing, at least in Alberta. There are really no other competitive financing options for multi-family developers. When you hear developers talking about a project “that pencils”, there is nothing that is penciling better than the MLI select projects. That’s why we’re only seeing 6-storey boring wood frame buildings. That’s also why developers are racing to build these things and same for the 6 and 8 unit buildings that are popping up in every central neighborhood in the city.

Again only my opinion, but I think we’re really getting close to an overbuilt situation. It’s based on what I’m seeing for getting these smaller projects leased up. It’s taking longer and rents are coming down. I hope I’m wrong.

My advice to anyone developing or building small scale or even 6-storey’s is stick to the best neighborhoods and hire a good builder who’s built/building cool shit. There are lots of them but there’s probably more building garbage so do your homework.
 
FrankRizza said:
I think he’s talking about developers with new product flooding the market. It’s happening here too. Anything that is attractively priced is still selling but if you’re asking for a premium, with rents falling from even early 2025 rental rate predictions, the building will sit on the market for awhile.

I have been financing real estate for the last 23 years, IMO the MLI Select program is the the single biggest game changer I have ever seen in real estate financing. It has basically replaced any sort of “conventional” financing, at least in Alberta. There are really no other competitive financing options for multi-family developers. When you hear developers talking about a project “that pencils”, there is nothing that is penciling better than the MLI select projects. That’s why we’re only seeing 6-storey boring wood frame buildings. That’s also why developers are racing to build these things and same for the 6 and 8 unit buildings that are popping up in every central neighborhood in the city.

Again only my opinion, but I think we’re really getting close to an overbuilt situation. It’s based on what I’m seeing for getting these smaller projects leased up. It’s taking longer and rents are coming down. I hope I’m wrong.

My advice to anyone developing or building small scale or even 6-storey’s is stick to the best neighborhoods and hire a good builder who’s built/building cool shit. There are lots of them but there’s probably more building garbage so do your homework.
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Conventional financing options are becoming more attractive from various lenders for well-heeled borrowers v. CMHC MLI. There are term sheets now coming out with 85% leverage on a conventional loan without the associated CMHC insurance premiums and affordability requirements. This will start to become an attractive option over the next couple years.
 
Oilers99 said:
Conventional financing options are becoming more attractive from various lenders for well-heeled borrowers v. CMHC MLI. There are term sheets now coming out with 85% leverage on a conventional loan without the associated CMHC insurance premiums and affordability requirements. This will start to become an attractive option over the next couple years.
Click to expand...
Should we expect commensurate adjustments in CHMC program? I assume this government remains interested in creating long-term affordable units.
 
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