Insights

There is a growing tendency to reduce the Canadian rental market to a single variable. Some point to immigration as the dominant force behind rent growth. Others focus on rent control as the defining constraint. Still others emphasize the slowdown in new construction. Each of these factors matters, but none of them operates in isolation. The more useful lens—particularly for investors underwriting multifamily assets—is to understand how these forces interact, and more importa

For much of the past decade, a “good deal” in Canadian multifamily was relatively easy to define. It was an asset in a strong market, acquired at a competitive cap rate, with clear upside through rent growth and a reasonable expectation of exit compression. As long as population growth remained strong and capital continued to flow into the sector, most well-located assets could be made to work. Underwriting focused on capturing that momentum. Precision mattered less because t

Here's what caught our attention this week: short-to-medium Government of Canada yields have come off meaningfully, mortgage bond spreads remain near the tight end of their annual range, and equity volatility has nearly doubled over the past year. None of these in isolation is alarming. Together, they paint a picture worth sitting with. The 1-year GoC is at 2.59%, down 10 basis points on the week. The 5-year is at 3.07%, off 6 basis points. The Bank of Canada overnight rate h