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Canadian Apartment Investment Conference September 2013
Mark Rousseau
Managing Director, Metroland Media
CANADIAN TENANT DESIRES
“RENTAL APARTMENT CONSTRUCTION SET TO BOOM”
The Globe and Mail, September 8, 2013
“CANADA POSED FOR GREATER REAL ESTATE INVESTMENT”
REMI Network, September 4, 2013
CANADIAN TENANT DESIRES, CAIC 2013
“CANADIANS AND THEIR GOVERNMENTS CAN NO LONGER
RELY ON HOMEOWNERSHIP ALONE TO MEET HOUSING
NEEDS”
FCM, No Vacancy: Trends in Rental Housing in Canada
TODAY’S FOCUS
CANADIAN TENANT DESIRES, CAIC 2013
1. Supply remains limited
2. Rent control regulations easing
3. Lifestyle choices and demographics are shifting
4. Rising cost of home ownership
5. Fewer renters making the move to ownership
6. Favorable interest rates
7. Condo growth and shifting preferences of boomers
RECENT RESEARCH
CANADIAN TENANT DESIRES, CAIC 2013
• 2012 NADbank Study
• 2013 Canadian Tenant Survey
CANADIAN TENANT DESIRES
1. Consider the shifts in demographics and lifestyles
2. Appeal to Boomers
3. Young adults have unique needs
4. Take a close look at Condo tenants
5. Brand position is important
CANADIAN TENANT DESIRES, CAIC 2013
DEMOGRAPHIC SHIFTS
• 16% of Canadian adults are tenants
• Growth in population aged 25-49, and 55 +
CANADIAN TENANT DESIRES, CAIC 2013
DEMOGRAPHIC SHIFTS: TENANT AGE PROFILE
CANADIAN TENANT DESIRES, CAIC 2013
0%
10%
20%
30%
40%
18-2425-34
35-4950-54
55+
Tenants Aged 25-49 and Boomers 55+
NADbank 2012
DEMOGRAPHIC SHIFTS
• 16% of Canadian adults are tenants
• Growth in population aged 25-49, and 55
• Rapid growth of single parent and 1-2 person households
CANADIAN TENANT DESIRES, CAIC 2013
DEMOGRAPHIC SHIFTS: HOUSEHOLD PROFILE
CANADIAN TENANT DESIRES, CAIC 2013
0%
10%
20%
30%
40%
OneTwo
ThreeFour
Five+
Tenants in 1-2 Person Adult Households
NADbank 2012
DEMOGRAPHIC SHIFTS: HOUSEHOLD PROFILE
CANADIAN TENANT DESIRES, CAIC 2013
0%
20%
40%
60%
80%
Adults Only
Adults with Children
Adult Tenant Households
NADbank 2012
DEMOGRAPHIC SHIFTS
• 16% of Canadian adults are tenants
• Growth in population aged 25-49, and 55 +
• Rapid growth of single parent and 1-2 person households
• City size and most income groups represented equally
CANADIAN TENANT DESIRES, CAIC 2013
DEMOGRAPHIC SHIFTS: CITY SIZE PROFILE
CANADIAN TENANT DESIRES, CAIC 2013
0%
10%
20%
30%
40%
Under 100,000100,000 - 500,000
500,000 +
Canadian Tenants by City Size
2013 CDN Tenant Survey
DEMOGRAPHIC SHIFTS: HH INCOME PROFILE
CANADIAN TENANT DESIRES, CAIC 2013
Canadian Tenants across HH Income Groups
2013 CDN Tenant Survey
0%
10%
20%
30%
Under $30,000$30k-$50k
$50k-$100k$100,000+
ACTIVE LIFESTYLES
• Canadian tenants have active lifestyles
CANADIAN TENANT DESIRES, CAIC 2013
ACTIVE LIFESTYLES
CANADIAN TENANT DESIRES, CAIC 2013
Tenants Canadians Walking for exercise 67% 72%
Exercise at home 57 61
Biking 42 46
Swimming 42 45
Jogging 25 28
Access Internet daily 73% 79%
Have mobile device 71 80
NADbank 2012
ACTIVE LIFESTYLES
CANADIAN TENANT DESIRES, CAIC 2013
Tenants Canadians Reading books 61% 61%
Family restaurants 80 85
Fine dining 48 55
Visit pubs 43 46
Live theatre 28 34
Museum 34 37
Beauty salon 32% 37%
Personal vacation travel 72% 79%
NADbank 2012
APPEAL TO BOOMERS
CANADIAN TENANT DESIRES, CAIC 2013
• Age 55+ accounts for 31% of tenants
• Cautious use of technology
APPEAL TO BOOMERS: TECHNOLOGY
CANADIAN TENANT DESIRES, CAIC 2013
0%10%
20%
30%
40%
50%
60%
70%
Social networksOnline
video/movies Smart phoneVisit apt listing
sites
Tenants aged 55+ more cautious with technology
All Tenants Tenants 55+
2013 CDN Tenant Survey
APPEAL TO BOOMERS
CANADIAN TENANT DESIRES, CAIC 2013
• Age 55+ accounts for 31% of tenants
• Cautious use of technology
• No differences: Internet access, income, condo rental, city size, gender
• Different preferences for top 10 amenities
APPEAL TO BOOMERS: TOP 10 AMENITIES
CANADIAN TENANT DESIRES, CAIC 2013
2013 CDN Tenant Survey
Tenants 55+ All Tenants Cleanliness 94% 81%
Cost of rent 93 89
Building safety 77 69
Tenant parking 68 58
Shopping nearby 61 54
Community reputation 58 55
Customer service 56 48
Storage 56 46
Visitor parking 48 39
Public transit 47 49
YOUNGER ADULTS HAVE UNIQUE NEEDS
CANADIAN TENANT DESIRES, CAIC 2013
• Age 25-44 accounts for 43% of tenants
• Depend upon new technology
YOUNGER ADULTS: TECHNOLOGY
CANADIAN TENANT DESIRES, CAIC 2013
0%
20%
40%
60%
80%
Social networksOnline
video/movies Smart phoneVisit apt listing
sites
Age 25-44 Tenants depend upon technology
All Tenants Tenants 25-44
2013 CDN Tenant Survey
YOUNGER ADULTS HAVE UNIQUE NEEDS
CANADIAN TENANT DESIRES, CAIC 2013
• Age 25-44 accounts for 43% of tenants
• Depend upon new technology
• No differences: income, condo rental, city size, gender
• Different preferences for top 10 amenities
YOUNGER ADULTS: TOP 10 AMENITIES
CANADIAN TENANT DESIRES, CAIC 2013
2013 CDN Tenant Survey
Tenants 25-44 All Tenants
Cost of rent 85% 89%
Cleanliness 76 81
Distance from work 65 50
Building safety 63 69
Community reputation 53 55
Tenant parking 52 58
Shopping nearby 49 54
Public transportation 49 49
Customer service 43 48
Pets 41 40
CLOSE LOOK AT CONDO TENANTS
CANADIAN TENANT DESIRES, CAIC 2013
• 16% of tenants living in condo rentals
• 77% live in Ontario and the West
CONDO TENANTS: REGION PROFILE
CANADIAN TENANT DESIRES, CAIC 2013
0%
20%
40%
60%
WestOntario
QuebecEast
Condo Tenants in Ontario and West Coast
2013 CDN Tenant Survey
CLOSE LOOK AT CONDO TENANTS
CANADIAN TENANT DESIRES, CAIC 2013
• 16% of tenants living in condo rentals
• 77% live in Ontario and the West
• 4 times more likely to pay +$1500
• 62% earn more than $50,000
• No differences: age, Internet usage, city size
• More investigation required
BRAND POSITION IS IMPORTANT
CANADIAN TENANT DESIRES, CAIC 2013
• 60% of Canadian Tenants believe Property Manager brand is important
• Consistent across all tenant demographics
• 2014 Canadian Tenant Survey to examine in more detail
CONSIDERATIONS
CANADIAN TENANT DESIRES, CAIC 2013
• Appeal to Boomers • Young adults have unique needs • Take a close look at Condo tenants • Create a specific brand position
THANK YOU
Mark Rousseau, Metroland Media
mrousseau@metroland.com
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