By: Todd McLaughlin, Source: Ottawa Matters
What will Ottawa's Rental Market Look Like this Year?
Tags: #ottawarentalmarket #ottawarealestate #ottawarealtor #ottawacondos #ottawahomes
The president of the Ottawa Real Estate Investors Organization sees continuing opportunities for investors in 2019, but is also cautioning that affordability and low vacancy rates will have to be dealt with in the country's capital.
"There are higher rents than ever before," said Rich Danby. "For a two-bedroom, the average rent rose by its highest level in 15 years, as higher interest rates and higher mortgages discourage tenants from buying a home."
Danby thinks this problem will continue.
"They are topics no one wants to discuss," he said. When it comes to affordable housing, "it's hard to get politicians on the record."
He said incentives for investors such as deferred taxes would help, but added, there are no easy solutions to this problem.
Danby believes nearby transportation in Ottawa neighbourhoods will have a big influence on where investors choose to put their money.
He's bullish on the Stittsville and Little Italy communities because of the proximity of light rail transit, and he likes the LeBreton Flats neighbourhood because of its "high walk" score, nearby transit and good restaurants.
Danby said he believes Millennials (ages 25 to 34) will continue to outpace Baby Boomers and Gen Xers as the majority of renters.
"Millennials are not as keen to settle down," Danby said. "They care more about convenience and amenities, and are looking more at quality of life."
Matt Danison, CEO of Rentals.ca, said to attract and keep Millennials, landlords will have to think tech, along with more amenities and convenience.
For example, he said a breakfast bar vendor offering coffee, juice oatmeal and pastries could be available in a common area of a rental building in the mornings. Or, he suggested that a cook could be available a few hours in the evening to grill chicken and make a salad.
He said free wifi, smart appliances and co-working spaces and nearby transit are attractions Millennials want.