The developer’s “very scary” plan to buy $1B in the house will cost renters: Anti-Poverty Organization
According to an anti-poverty organization, a developer in Toronto plans to purchase a single-family home worth $1 billion and convert it into rental properties. This is a “frightening” example that more and more people will be affected by the price. Excluded from the increasingly expensive housing market.
plan, The Globe and Mail reported on Monday, Will see the Core Developments Group build a single-family residential rental business by purchasing housing stock in Ontario’s medium-sized cities, including London, Kingston, Hamilton, Barrie, Cambridge, Peterborough, Guelph and St. Catharines.
The developer hopes to expand its footprint beyond the province by 2026, eventually establishing a fleet of 4,000 rental units in Ontario, British Columbia, Quebec and Atlantic Canada.
Finding decent rent is “almost impossible”
Samantha Lawrence, a member of the ACORN chapter in London, Ontario, said: “I think it’s very scary. Finding a decent place to rent a house has become more difficult, which is almost impossible at this point.” Low income And middle-income groups.
“There are no quality control or property standards.”
Lawrence said she has been a renter for life since she moved out of her parents’ house when she was 17 years old. She said that over time, it has become increasingly difficult to find a suitable place to house her two daughters at an affordable price.
Lawrence said that despite paying fair market rent, she still refuses to fix these problems because of bugs and cockroaches, improperly sealed windows, and even discoloration of tap water.
“I’ve experienced all kinds of things, from freezing pipes in winter to having to borrow buckets from neighbors to flush toilets, not to mention bathing and the like, to roof leaks.”
Tight housing inventory has become the norm
Lawrence’s experience underscores what is becoming more and more common in the highly competitive real estate market, where inventory of single-family homes and apartments are at their lowest levels in decades.
According to data from the St Thomas Association of Realtors in London, in the London area, 1,433 houses were sold last month. There are very few houses on the market. It will take more than two weeks to liquidate the existing inventory in the area.
Latest market rent survey The situation from the Canadian Mortgage Housing Corporation (CMHC) is not encouraging. The average rent in London was US$1,119, an increase of 7% from 2019, although the vacancy rate rose to 3.4% due to new units launched last year.
CBC News asked Core Development Group for an interview on Monday and received a written statement from CEO Corey Hawtin on Tuesday.
He wrote that Core Developments chose London, just like other cities in Ontario, because of its low vacancy rate.
“We chose markets with little new supply but high demand. Low vacancy rates and all markets are growing in population, they accommodate a variety of employers, and cities without roofs are being developed to accommodate this growth.”
The statement stated that the company is seeking to create a “more innovative” housing supply in response to the housing crisis, and renters that the company calls a “fast-growing group” need to be “advocated.”
The statement said: “The rent supply in the low-rise single-family housing market is seriously inadequate. Renovating existing houses to increase density is the most expedient measure to increase housing supply.”
“Core’s goal is to provide stable, safe, and long-term ground residential rental properties for those who cannot buy but do not want to rent out apartments where they or their families have limited space.
“We are creating new supply by refurbishing underutilized and underinvested houses that are designed to accommodate a second legal and permitted unit.”
“This could also be Ireland in the 18th century”
Core Developments said it is targeting its products to families who do not want to live in small apartments, and hopes that its foray into rental housing will stimulate major investment.
Lawrence worries that this might be the end of the end for couples who rent out single-family homes.
“It’s happening. Everyone will have to deal with some big companies because all these people will be swallowed.”
“It could also be Ireland in the 18th century.”