Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}
residential investment rental Ontario Single Family Rental Investment


The Case For Single Family Rental Investment in Ontario, Canada

With time and investment, the single-family rental sector has the potential to evolve into a professionally managed, institutionally owned commercial real estate asset class within the larger rental housing spectrum in Canada, as it already has in the United States.

The evolution of the $4.4 trillion single-family rental (SFR) sector in the United States serves as a case study to demonstrate how conversions of individually owned single-family homes (SFH) to institutionally owned rental units can provide a dual benefit to renters and investors alike. This strategy creates quality rental housing options for tenants and can generate predictable, recurring cash flows for investor-owners. With time and investment, this sector has the potential to evolve into a professionally managed, institutionally owned commercial real estate (CRE) asset class within the larger rental housing spectrum in Canada as it has in the United States.

This report will demonstrate SFR’s market potential as an asset class within the broader housing CRE sector in the province of Ontario, Canada’s most populous region. This report focuses on 34 markets of various sizes and characteristics in Ontario; however, this SFR strategy may be applied to other regions in Canada and is certainly worth exploring given the housing shortage across Canada and the rising price of single-family homes across the nation.

Therefore, the premise is that a new SFR asset class can 1) provide a solution to the systemic shortage of housing, 2) create a desirable opportunity for an investment strategy in targeted markets.

The benefits of and rationale behind an SFR strategy in the Canadian (Ontario) market include:

  • ADDRESSING HOUSING SHORTAGE – Converting, renovating, and densifying single-family home residential properties as an expedited solution to provide quality housing in a market that has experienced a chronic shortage. Ontario’s More Homes Built Faster Act passed in October 2022, which is projected to stimulate housing production by reducing regulatory barriers, making the next two years a favorable period for entering housing development in Canada.

  • IMMIGRATION AS DEMAND ACCELERATOR – Canada is expected to experience the greatest percent increase in immigration across G7 countries, providing a multiyear driver for heightened rental demand in an already severely supply-constrained market. In 2022, Canada’s population grew by one million, largely driven by immigration. Immigration is projected to accelerate due to Canada’s Immigration Levels Plan for 2023-2025, passed in Q4 2022. This plan aims to welcome roughly 1.5M more immigrants in the next two years.

  • TAILWINDS FOR RENTAL HOUSING DEMAND – Recent increases in interest rates globally have reduced homeownership by increasing the cost of capital, thereby increasing demand for rentals. These higher borrowing costs have outweighed the impact of decreasing home prices for would-be homebuyers. This has stalled home buying in Ontario, however, home prices which had seen unprecedented growth in the last 5 years, remain out of reach for many Canadians, especially in and around major municipalities.

  • ESG APPROACH – Working with existing housing stock fits an Environmental, Social & Governance (ESG) mission by bypassing the carbon footprint of new construction while providing housing at more affordable rental rates than are financially feasible with new construction.

  • PROOF OF CONCEPT – The SFR business model has been tried, tested, and proven in the U.S. SFR market and investors in growing markets such as Ontario can reap the benefits of being early movers or fast followers, as demonstrated by the early adopters in the U.S. during the last real estate cycle.

  • INVESTOR RETURNS – Scattered SFR rentals trade at higher spreads than BTR (Build-to-Rent) or conventional, purpose-built multifamily rental developments. Layering on a densification strategy to the acquisition-and-rehabilitation of residential properties via Accessory Dwelling Units (ADU) or substantial renovations can enhance investors returns.

>> Download the report.

Insights in your inbox
Subscribe to get our latest research, thought leadership, insights, and news.

Related Insights


​​Contextualizing Development Risk​

The U.S. multifamily market is in the midst of the largest supply wave in modern history. But construction timelines are longer than ever, meaning the market has more time to absorb these deliveries. With supply risk distributed across the U.S., overbuilding is just a much a function of demand as it is supply. 
Sam Tenenbaum • 3/24/2023
Research • Economy

Canadian Census Series

Throughout 2022, Cushman & Wakefield will be releasing a multi-part series that highlights key takeaways from the 2021 census data released by Statistics Canada. 
Kristina Bowman • 12/19/2022

Single-Family Rentals and the Art of Neighboring

Single-family rentals offer more than low maintenance and short-term commitment—they also provide a single-family lifestyle and the community that comes with it.
Jeremy Edmiston • 12/8/2022

Housing Starts Down But Single Family for Rent and Built-to-Rent Remain Strong

The Census recently released second quarter starts data, and as expected, we continue to see a pullback in the single-family market. Overall housing starts continue to decline with single-family starts back to 2019 levels.
Sam Tenenbaum • 8/22/2022

Would You Like To Learn More?

Our professionals are ready to provide further details on this and many other topics.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All