It’s no secret that Canadians are increasingly choosing to live in multi-family rental homes. With changing market attitudes and stricter mortgage rules, there is growing market demand for new, quality multi-family rental homes in Canada. Recent economic trends show that Alberta’s economy is growing, and our population has continued to grow even during the economic downturn.
Due to a history of condominium conversion and obsolescence, there are fewer purpose-built rental apartments in Calgary today than in 2003. During this period, Calgary’s population increased by 45 per cent. These trends leave Calgary at less than half the national average in rental apartments per capita. Similar conditions exist in the Edmonton market. Therefore, we see room for substantial growth in the purpose-built residential rental market in Alberta.
Market analysis shows that millennials are most likely to choose to rent their homes, and Alberta has the highest population of millennials in Canada. Not only do these individuals want to rent – they want to rent new. With 65 per cent of the current Calgary and Edmonton apartment stock built prior to 1979, there is increasing demand for new rental apartment buildings.
We are well-positioned to meet the demand with our current portfolio of over 3,000 residences across Canada, and construction is underway for an additional 1,000 residences in Edmonton and Calgary. Combined with our plans in development, we have more than 2,500 new multi-family residences in our pipeline. With commercial office space likely to achieve positive market balance in more than a decade from now, the residential rental market is where we see the most growth and opportunity. There is room for another 62,164 rental apartments in Calgary and another 24,208 rental apartments in Edmonton before reaching the national average.
We take pride in delivering efficient services to ensure a complete and supportive experience for our residents. By renting a multi-family residence in a building owned, operated, and managed by Strategic Group, people benefit from the company’s ability to maintain and improve the quality of the building as a long-term investment. Strategic Group knows that every multi-family building they own, operate, and manage is a community of citizens who make the buildings their homes.
For more information, please refer to the 2018 Annual Review.
Above photo: rooftop patio view from Centro, Calgary, AB.