CANADIAN TENANT DESIRES - Real Estate Forums

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


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


• 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


DEMOGRAPHIC SHIFTS

• 16% of Canadian adults are tenants

• Growth in population aged 25-49, and 55 +


DEMOGRAPHIC SHIFTS: TENANT AGE PROFILE


0%

10%

20%

30%

40%

18-2425-34

35-4950-54

55+

Tenants Aged 25-49 and Boomers 55+

NADbank 2012

DEMOGRAPHIC SHIFTS


• Growth in population aged 25-49, and 55

• Rapid growth of single parent and 1-2 person households


DEMOGRAPHIC SHIFTS: HOUSEHOLD PROFILE


0%

10%

20%

30%

40%

OneTwo

ThreeFour

Five+

Tenants in 1-2 Person Adult Households

NADbank 2012

DEMOGRAPHIC SHIFTS: HOUSEHOLD PROFILE


0%

20%

40%

60%

80%

Adults Only

Adults with Children

Adult Tenant Households

NADbank 2012

DEMOGRAPHIC SHIFTS


• 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


DEMOGRAPHIC SHIFTS: CITY SIZE PROFILE


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 Tenants across HH Income Groups


0%

10%

20%

30%

Under $30,000$30k-$50k

$50k-$100k$100,000+

ACTIVE LIFESTYLES

• Canadian tenants have active lifestyles


ACTIVE LIFESTYLES


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


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


• Age 55+ accounts for 31% of tenants

• Cautious use of technology

APPEAL TO BOOMERS: TECHNOLOGY


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+


APPEAL TO BOOMERS


• 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



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


• Age 25-44 accounts for 43% of tenants

• Depend upon new technology

YOUNGER ADULTS: TECHNOLOGY


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


YOUNGER ADULTS HAVE UNIQUE NEEDS


• 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



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


• 16% of tenants living in condo rentals

• 77% live in Ontario and the West

CONDO TENANTS: REGION PROFILE


0%

20%

40%

60%

WestOntario

QuebecEast

Condo Tenants in Ontario and West Coast


CLOSE LOOK AT CONDO TENANTS


• 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


• 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


• 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

[email protected]

Documents

CANADIAN TENANT DESIRES - Real Estate Forums