2020 Multi-Family Forecast for Winnipeg
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Winnipeg, Manitoba and Surrounding Areas 2020 Multi-Family Forecast: Drivers & Indicators Manitoba has always been economically Winnipeg has the largest aerospace destination of Canada and a model for strong and diverse. We have nurtured a centre in Western Canada. It’s home immigrant integration in Canada. robust workforce that is skilled, talented to advanced manufacturing market and productive. If you’re looking to leaders and boasts one of the biggest Winnipeg has the lowest published relocate or expand to a place where hubs for bus manufacturing in North electricity costs in Canada for small opportunities for growth are limited only America. Agribusiness has long nourished medium and large businesses, and by imagination, considering Manitoba Manitoba’s growth, due to its world- KPMG ranks the city No. 1 in cost- should be at the top of your list. Our class agricultural infrastructure; and competitiveness in Western Canada Province is a place where business can initiatives in life sciences make Winnipeg and in all U.S. cities surveyed. Also, grow faster, stronger and better; a place a remarkable centre of discovery, housing BellMTS is launching a $400MM, 5-year that is intelligent, creative and culturally the only Level 4 bio-containment lab in committment construction project diverse; a place where the infrastructure, the country and about 40 additional R&D that will be installing fibre optic cables supplier base and (most importantly) the institutions. throughout the City. Over 250,000 people are ready to help your business Winnipeg residents and businesses will get growing. CNR intersects with Brandon and Portage be connected to the state-of-the-art La Prairie with 72 trains that pass through fibre optics that will boost capactiy and Manitoba’s flourishing industry sectors, on a daily basis. Brandon is also known internet speeds to the fastest in North geographic and time zone advantages, for having a very large Health Care labour America. and transportation assets – coupled force. Portage La Prairie is known to have with Winnipeg's CentrePort Canada, some of the best soil for agricultural Named a Top Canadian Metro by Site the nation’s only trimodal inland port growing in Canada. Selkirk is known for Selection magazine thanks to exceptional to offer foreign trade zone advantages being the Catfish Capital of the World and public- and private-sector investments –make's Manitoba an exceptional draw home base for the Canadian Coast Guard. citywide, there’s never been a better time for business. Consider this: the City of Steinbach is the major immigration to invest in Manitoba. Partnership. Performance. avisonyoung.com x 100000 0. 1. 2. 3. 0 5 1 5 2 5 3 5 Col um n1 Partnership. Performance. Performance. Partnership. Information asperMacroTrends Char $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $50,000 Ser $0 t t Demographics for Winnipeg and Surrounding Areas andSurrounding Winnipeg for Demographics Ti i es Median Monthly Rent Median Monthly Rent tle '10 in Manitoba (2018) 2 15,808 $752 2010'10 '11 15,963 InfluxManitoba Immigration Winniepg Average HousePrice Average Winniepg Ser 2011'11 i '12 es 13,308 2012'12 3 '13 13,106 2013'13 '14 16,231 Ser 2014'14 Ser i '15 es i es 14,900 2015'15 1 1 1,369M '16 16,821 in Population Current 2016'16 Manitoba (2019) '17 10,427 2017'17 '18 14,158 2018'18 '19 18,908 2019'19 '20 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% (%) 10 20 30 40 50 60 70 80 0 '15'15 Rate Change Growth Population Portage LaPrairie Portage Brandon Winnipeg '16'16 Single-Detached Total Private Households Private Total '17'17 Semi-Detached '18 '18 Row House of Manitoba(%) '19'19 Apt/Flat in a Duplex '20'20 Steinbach Selkirk '21 Apt in a 5+ Storey Bldg. '21 PROJECTIONS '22 '22 Apt in a -5 Storey Bldg. '23'23 a Other visonyoung.com '24 '24 '25 '25 Drivers of Multifamily Canada's multi-family market is the most robust it's ever been – with growing populations, rising home ownership costs and lack of rental supply, it is driving the sector up with record setting returns and invstment volumes Population Growth The projection for the next five years is problem by themselves, the chief issue Population growth is one of the main a 18% population increase at consistent is that income growth has not kept pace drivers of the multifamily sector, annual rates, with Winnipeg CMA hitting with the growth witnessed in housing increasing the demand for housing up the mark of 892,900 inhabitants by 2023. prices. - particularly purpose- built rental units. Home Ownership Unaffordability Lack of Supply According to current research, housing On the other side of the coin sits a One of the key 12,325 IMMIGRANTS PER prices have been a growing concern in supply of rental units. Outside a few factors behind YEAR WILL REMAIN Canada over the past few years. exceptions, rental inventories in major Winnipeg’s IN WINNIPEG Canadian markets are limited compared sustained growth is Recent reports to their global peers. The largest rental immigration. 2018 saw have shown that $ market in Canada is Montreal with the highest number of immigrants that when comparing 531K AVG. PRICE OF A just under 600,000 units. Winnipeg's landed in Manitoba – over 19,000. At an affordability HOUSE IN inventory sits at 61,553 average of 14,500 immigrants per year, (the relationship CANADA units. of whom 85% will stay in Winnipeg, between average Manitoba offers five (5) different home prices and Factoring in the 61,553 immigration programs and has the most RENTAL UNITS median incomes) across global cities, population base AVAILABLE IN affordable tuition fees for international Canadian markets consistently rank of each city sheds WINNIPEG students in Canada. With such steady as some of the least affordable in the further light on the growth, Manitoba's Economic Growth world. No major Canadian city was lack of rental housing. Action Plan has set out to create 40,000 classified as affordable in this report, For example, there are approximately 15 jobs over the next four years. including Winnipeg, which people living in Winnipeg CMA for every ranked as slightly more unit of rental housing. For reference, According to the Conference Board of unaffordable than the number of persons per rental unit Canada, Winnipeg has been growing $ 270K Edmonton and Halifax. is 7 in New York, 9 in Los Angeles and more than Edmonton, Ottawa, and AVG. PRICE OF A HOUSE IN 13 in Chicago. While this metric reflects Halifax, and is tied with Calgary. WINNIPEG While rising home prices poorly on many of the larger Canadian are not necessarily a markets except for Montreal. Key Indicators Historical Vacancy Rates (%) In Winnipeg Average Rent ($) In Winnipeg's Neighbourhoods YEAR Bach. 1 BRM 2 BRM 3+ BRM TOAL AREA Bach. 1 BRM 2 BRM 3+ BRM AVG 1999 4.6 3.2 2.4 2.4 3 Charleswood 791 945 1,147 1,481 1,024 2000 4.7 2.2 1.2 1.2 2 Downtown 717 917 1,133 1,211 938 2001 3.4 1.5 1.1 1 1.4 East St. Boniface ** 909 1,210 1,384 1,133 2002 2.2 1.3 0.7 0.8 1.2 Fort Garry North 797 975 1,132 1,411 1,064 2003 2.7 1.5 0.8 0.7 1.3 Fort Richmond ** 1,118 1,366 1,525 1,307 2004 1.4 1.2 0.9 2.1 1.1 Fort Rouge West 727 934 1,167 1,477 1,028 2005 3 1.8 1.4 1 1.7 Garden City ** 1,020 1,228 1,315 1,164 2006 2.2 1.4 1.1 1.2 1.4 Norwood 761 841 1,114 ** 927 2007 1.8 1.4 1.5 2.2 1.5 Old St. Vital 766 919 1,113 1,168 1,001 2008 1.9 0.8 0.9 1.3 1 River-Osborne 661 953 1,294 1,514 1,093 2009 2 1.2 1 0.9 1.1 Rossmere - 766 981 1,271 1,453 1,116 2010 1.2 0.8 0.8 1.2 0.8 Concordia 2011 1.6 0.9 1.2 0.9 1.1 South St. Vital ** 1,057 1,348 1,366 1,221 2012 1.7 1.4 2 1.1 1.7 St. Bonfiace 678 889 1,081 1,272 943 2013 2.7 2.4 2.5 2.9 2.5 St. James East 791 956 1,154 1,413 1,048 2014 3.6 2.5 2.4 2 2.5 St. James West 752 945 1,133 1,527 1,058 2015 2.9 2.7 3.2 3 2.9 Tuxedo ** 1,164 1,396 1,940 1,363 2016 2.1 3 2.8 2.8 2.8 Wolseley 640 785 984 1,171 844 2017 2.7 3.1 2.6 2.4 2.8 Winnipeg 697 920 1,180 1,420 1,039 Source: Canadian Mortgage and Housing Corporation Sampling of Multi-Family Opportunities Available For Sale Address Size Description Price 1501 Braecrest Drive, Brandon 12.23 Acres Zoned to allow 12 floor buildings - density of 59 units per acre $2,500,000 330 Creek Bend Road, Winnipeg 5 Acres Close to UofM, high income area, other MF developments in area $1,750,000 677 Maryland Street, Winnipeg 3-Storey 32 fully renovated suites, on-site parking, many amenities $2,795,000 SW Winnipeg @ Bishop Grandin 2-15 Acres Multiple options are available – $1,200,000 per acre Call Agents Comparable Multi-Family Sales Address Size Description Sold Price Sold Date Mcdonald Road, Oakbluff 14.55 Acres SW of Winnipeg; designated as an Urban Centre $1,100,000 May 2019 Bridgewater Lands, Winnipeg 1.42 Acres Fastest growing subdivision in SW Winnipeg $2,412,000 Sept 2019 3270 Pembina Highway, Winnipeg 1.69 Acres For commercial or multifamily development $1,750,000 Oct 2019 Trends to Watch Here are a few trends Millennials Are Baby Boomers Are Millennials Are Multi-Family Is that will impact multi- On The Move Downsizing Having Children Flourishing family real estate and Millennials are moving out Boomers are selling their As Millennials start having Marked by low vacancies sustainability strategies in of their parent's houses homes and relocating to families, their demand for nation-wide and rental often to multi-family, urban developments and mixed-use suburban ares rates at 10-year highs, the 2020 and beyond amenity-rich apartments embracing city life with schools and transit will multifamily segment shows increase no sign of slowing down Partnership.