CMHC's latest outlook suggests rental markets are moving toward greater balance as new supply comes online. How quickly do you expect that rebalancing to play out, and which markets are furthest from equilibrium?
We feel this is less a true rebalancing and more a short-term absorption cycle. A wave of completions is arriving all at once, which can create pockets of softness over the next 12 to 24 months, but the structural fundamentals in Canada’s major rental markets have not materially changed. Population growth, household formation, and barriers to homeownership still support long-term rental demand, which is why we expect the strongest markets to move through this phase relatively quickly. In our view, the markets furthest from equilibrium remain the GTA and Metro Vancouver, while Calgary and Edmonton are in a more active absorption phase, and Montréal sits in the middle with strong long-term demand but greater renter price sensitivity.
There's been a lot of discussion about condo investors pulling back and tenants in condo sublets shifting toward purpose-built rentals. Are you seeing that migration happen?
Yes, we are seeing that migration in real time, and it reflects a broader change in renter expectations. For years, many renters chose newer condo product because it offered modern finishes and strong locations, even if the experience was not professionally managed. Now that more purpose-built rental options can offer both quality product and a consistent resident experience, that same renter is increasingly choosing the stability, service, and accountability of professionally managed communities. It is also creating a structural tailwind for Hazelview, as more projects that may once have been conceived as condo are now better suited to purpose-built rental execution. That said, there are some headwinds that government taxes and fees continue to pressure along side the real threat of construction cost increases due to geopolitical conflict causing inflation in commodity prices.
How are municipal approval timelines, development charges, and policy uncertainty factoring into your go/no-go decisions on new projects — and are any jurisdictions getting it right?
They are a direct factor in every go or no-go decision because uncertainty on timing and cost can undermine an otherwise strong project. What has changed is not just the length of approvals, but the level of documentation, rigidity, and negotiation built into the process, which makes capital more cautious and often redirects it to markets where execution is more predictable. We have seen encouraging progress in places that treat housing as essential infrastructure, including parts of Alberta and through measures like Ontario’s Bill 23 and rental-related charge relief, even if those tools remain imperfect. The jurisdictions getting it right are the ones that create a reliable path to construction and understand that housing delivery depends on both policy intent and practical execution.
With rent growth moderating nationally, how does Hazelview think about the tension between slower near-term revenue growth and the long-term thesis for rental housing in Canada?
We do not see moderated rent growth as a break in the thesis. We see it as part of a healthier, more mature cycle that rewards disciplined operators over short-term momentum players. Hazelview underwrites with a long-hold mindset, which means our focus stays on realistic rent assumptions, disciplined cost management, strong occupancy, resident retention, and operational execution across cycles. That is where an integrated platform matters most, because when growth normalizes, value increasingly goes to those who know how to run buildings well and create communities people are proud to call home.
A lot of older rental buildings had larger floor plans and more attractive amenities that you don’t see in newer builds. Why do you think this changed, and do you ever see us getting back to a world where you have a decent supply of larger, family-friendly apartments?
The biggest driver is economics. Land, construction, financing, taxes, fees, and approval timelines have all increased to the point where larger suites are harder to deliver, and in many cases policy frameworks further discourage them through higher charges tied to bedroom count. That said, size alone should not be confused with quality. A well-designed home can often outperform a larger but less functional one, which is why Hazelview puts so much emphasis on layout efficiency, liveability, and resident-centred design. Looking ahead, we do think the market needs more family-friendly rental options, but getting there will require policy that actively supports more bedrooms, not policy that penalizes them.
What are renters looking for in apartments now, aside from affordability? Any interesting demand patterns you're seeing in the market?
Renters are looking for certainty, convenience, and a better day-to-day experience. They want professionally managed buildings in connected neighbourhoods, but they also place real value on wellness, digital ease, thoughtful amenities, and a sense of community, which aligns closely with Hazelview’s focus on resident wellbeing and long-term relationships. We are also seeing more renters prioritize quality of management over novelty alone. That means responsive service, strong building operations, access to everyday essentials, and programs that help people feel seen, supported, and proud to call home.
Looking out three to five years, what do you expect the purpose-built rental market to look like? Are we going to be oversupplied, supply constrained, something else?
Our view is that Canada is far more likely to remain supply constrained than become structurally oversupplied. In the near term, some markets will continue working through a concentrated wave of deliveries, but the sharper story is what comes next: starts are slowing at a time when housing need remains deep, and that will show up in future availability. Over a three- to five-year horizon, we expect well-located, professionally managed purpose-built rental to remain one of the most compelling housing formats in the country. That is why Hazelview continues to lean in with discipline, conviction, and an owner-operator mindset focused on long-term value for investors, residents, and communities.
