Despite the COVID-19 pandemic still being a serious issue throughout Canada, the real estate market is performing extremely well. The market is hot, with property appreciation growing at historic levels and prices rising steadily.
This has impacted the Oshawa rental market in that more people may need to rent if they can’t compete in a fast-moving, highly-priced sales market.
Here’s what you can expect if you’re an investor in Oshawa with rental properties.
Shifting Rental Market
Things looked fairly bleak for the rental market at first, but it quickly adapted to the new normal, especially in the multi-family rental sector. Studies indicate that the COVID-19 pandemic caused a temporary slowdown in rental activity, which delayed and shortened the typical high season for tenants moving and renting new homes.
However, as self-guided tours and contact-free leasing became the norm thanks to technology, traffic picked up. Leasing and moving also tended to shift according to economic and generational demographics. Middle-income renters were willing to move during the pandemic while older residents were more likely to stay in place. There’s also a new pool of tenants on the market – Generation Z.
Location is More Important During COVID
The rental market in Oshawa has also been impacted by a migration of residents out of larger cities such as Toronto. With lockdowns and quarantines in place, more people began working from home, and that’s a trend that seems to be sticking around for many residents. It’s given renters the opportunity to be selective about where they live. Instead of more expensive housing in Toronto, they can move to a community like Oshawa or Durham and get more for less. This is a trend that’s been tracked in both the rental and sales market over the last year.
Decreased Supply and Higher Demand
With the housing market as hot as it is, a lot of tenants are feeling displaced. Their landlords may be selling their property in order to cash out of the market, leaving them without an affordable alternative.
This creates an excellent opportunity, especially for multi-family properties that are not likely to sell and will instead offer displaced tenants a viable option when they’re looking for a new home. With an increase in demand and a decrease in supply of good rental housing, you’ll see less vacancy and turnover in your own rental properties. If you do have a tenant who is moving out, you’ll likely be able to replace that resident quickly.
Well-maintained homes in good locations that are competitively priced are going to rent right away. You’ll have the opportunity to be selective with tenants, and you can count on stable, long-term tenancies going forward.
The COVID pandemic has brought a lot of challenges to both investors and tenants over the last year. However, with challenges come opportunities. If you’d like to talk about your specific property and what the new market dynamics mean for you, please contact us at Investor’s Choice Property Management. We’d be happy to tell you more about our property management and real estate services in Durham and Clarington.