Ever wonder why it feels like first-time home buyers have taken a step back in today’s market while rental properties are more in-demand than ever? It’s not just you. The dynamics in Canadian real estate have shifted, and right now, landlords are navigating those changes with a strategy that’s working.
First-time buyers are definitely not gone but many are hitting pause. Meanwhile, savvy landlords are filling the gaps in a market where demand for housing hasn’t slowed down, especially on the rental side.
So what’s going on?
Let’s start with the buyers. Across Canada, affordability continues to be the biggest barrier. The average home price in April 2025 hovered around $689,200. That’s a tough entry point, especially if you’re not working with help from family or a high dual income. And it’s not just the sticker price. Rising interest rates and tighter lending conditions mean many would-be buyers are choosing to wait until conditions feel more manageable.
Now here’s where landlords come in. With that demand building on the sidelines, the need for quality rentals is huge—and that’s exactly what investors are stepping in to provide. They’re not pushing buyers out of the market; they’re simply filling a space that’s opened up.
Right now in Canada, about 1 in 5 homes is owned by an investor. In some urban condo markets, that number’s even higher. And while it might sound surprising, it makes sense, investors are offering housing to those who aren’t buying yet but still need a place to live.
A few key reasons why first-timers are holding back:
1. Affordability is still a hurdle.
Yes, prices have softened in some markets—but overall, home values remain high relative to incomes. And many buyers want to wait for the right moment instead of rushing in.
2. Supply hasn’t caught up.
We’re still facing a national housing shortage. According to CMHC, Canada needs to build double the current volume of homes annually just to meet demand.
3. Investors are playing the long game.
Landlords aren’t just flipping homes, they’re often holding onto properties and offering stable long-term rentals. In this market, that’s creating much-needed inventory for people who aren’t quite ready to buy.
Here’s the takeaway: this isn’t a story of landlords versus first-time buyers. It’s about different players responding to the same pressures in different ways.
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If you're a new buyer, you’re not alone in waiting.
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If you're a landlord, you’re offering a real service, housing in a market where it’s desperately needed.
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If you're somewhere in between, renting now but eyeing your first purchase, this could be the perfect time to make a plan.
The good news? Change is happening. Government policies are aiming to level the playing field with new incentives, investor guidelines, and affordability-focused projects. But until those shifts fully take hold, the rental market will remain strong and so will investor activity.
✨ Curious what your options look like? Whether you're renting, investing, or somewhere in between? Let’s connect. There are paths forward for everyone, even in a tricky market.
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