Many homeowners and renters alike watched the housing market in 2020 with dread. Last year was full of upheaval, which made large decisions like moving or putting your home on the market extremely difficult. Landlords, renters, and property managers in Windsor are all best served when they’re operating in a market that’s both regulated and predictable. Unfortunately, 2020 was not conducive to predictability.
In the last weeks and months, we’ve been able to take some time to examine the trends of the last year, and learn how they might influence the year to come. By learning from the past, we can prepare ourselves to make smart financial and housing choices in the future.
Today, we’ve taken a look at some of the latest research on Ontario housing, and what the industry’s thinkers have predicted will influence the local and provincial rental market in 2021. Here are some of the forecasts that we think will have the biggest influence on landlords and tenants in Windsor and the surrounding area.
Returning to Our Regular Activities Will Bring Back Demand
Although 2020 was full of interruptions to our regular routine, most people expect that at some point in 2021, our lives will slowly begin to look a bit more normal. One of the first things to return will be essential activities like in-person schooling.
Many experts believe that post-secondary students returning to in-person classes will have a huge impact on rental demand in cities and university towns. Their studies have already been so interrupted, and the majority of students are eager to get back to their life at school with their peers.
Another regular activity that’s been hugely interrupted by the COVID-19 pandemic is immigration. On average, immigration decreased by more than 67% across Canada in 2020 compared to 2019. Fortunately, if the government takes rapid action to bring countrywide immigration numbers up once there are proper safety measures in place, this can be reversed. This increase of foreign students, temporary visitors, and new Canadians can only have a net positive effect on our rental market moving forward.
Seasonal Cycles Will Return
In 2020, nothing felt normal. People broke their leases and moved out early because they simply couldn’t afford to stay in their current residence, or took holidays in the middle of fall because they could.
Once we’re able to get back to more aspects of our normal lives, we can expect that seasonal cycles in the rental market will return as well. Seasonality in the rental market is affected by everything from the school year to vacations, and as more people return to normal, we can expect to see these visible periods of greater turnover appear once again.
Detached Homes Will Continue to Grow in Popularity
In 2020, we saw condos, which had been steadily growing in popularity, slow to a growth rate much lower than that of detached houses. In the new year, expect this trend to continue, with the median price of a 2-storey detached house increasing an average of 6% this year alone.
Houses all over the country will continue to be more appealing to those who can afford them. During the pandemic, we’ve all seen the value of having your own outdoor space to relax, barbecue, and entertain friends and family from a safe distance. While in-person activities will slowly make their return, many people will still feel more comfortable being outdoors together instead of inside.
18-Hour Cities Will See More Demand
In the housing market, a 24-hour city is one with amenities and entertainment options open 24/7. While those cities, like Toronto, will always be bustling, real estate agents have begun to tout the growing popularity of 18-hour cities.
These up-and-coming mid-sized cities, like Windsor and Kitchener-Waterloo, have been very attractive to both buyers and renters since the beginning of the COVID-19 pandemic. Many workers from larger cities moved to these mid-sized cities in droves after offices went remote.
With the option to work remotely on an indefinite basis suddenly a reality, many people took the opportunity to move out of cities, closer to family, or into towns near their favorite attractions. Look for these areas to become even more popular in 2021, which may drive up the price of local rentals.
Need Help Planning for the Future? Find a Windsor Property Manager You Can Trust
If you’re nervous about the challenges of the upcoming year, you don’t need to face it alone. Our trusted team of Windsor property managers are always there to offer a helping hand, or expert advice. We’ve been working in the area for years, and have close connections with many local professionals to ensure that your investments are protected.
Don’t wait until you’re in over your head. Get in touch with the Goldmar Property Management team and learn how we can help.