Craig Alexander, Ted Tsiakopoulos, Benjamin Tal

Economic forecast 2012

How the housing market affects the apartment segment
Saturday, October 8, 2011

Craig Alexander, senior vice-president and chief economist, TD Bank Financial Group says moderate economic growth implies inflation will remain contained. Low interest rates favour the real estate sector, however, the economic climate isn’t likely to support strong increases in rents.

Ted Tsiakopoulos, Ontario regional economist, Canada Mortgage and Housing Corp. (CMHC) offers good news for landlords and property managers: It will be easier to fill units over the next year as vacancies move lower and there are definite factors to support rental demand.

Benjamin Tal, managing director and deputy chief economist, CIBC World Markets Inc. foresees a stagnating housing market in which supply and demand will meet “maybe five or seven years from now.” The fundamentals – interest rates, business confidence and inflation – inspire bullishness about the rental sector.

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