Canadian Multifamily Report
Canada’s multifamily fundamentals continue to be solid, as vacancies are at multi-year lows and lease-over-lease rent growth hit double digits in the third quarter. However, the market is bracing for the impact of higher interest rates, especially on the overheated housing market. After raising its policy interest rate by 75 basis points in September, the Bank of Canada (BOC) has set rates at 3.25%. The BOC may be forced to continue increasing rates to keep up with the U.S. Federal Reserve to avoid devaluing the Canadian dollar. Many economists expect the BOC to increase rates to the 4.5% range, which has broad implications for the economy and the housing market.
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