As more university towns and cities report a shortage of housing stocks, investors are being encouraged to finally embrace the property type.
With lines of over 25 at viewings and willing to pay over the asking price to secure rooms, investors are being told to wake up to the concept and profits now being offered in student rentals.
From Vancouver to Edmonton and Scarborough, many university student bodies have said housing levels are now at crisis levels with more stock required to accommodate the country’s growing student population.
Almost one million full-time students enrolled in 82 university institutions across Canada in September 2013, with almost half of that number hailing from outside of the universities’ host communities.
Canada has also been attracting a high number of international students, with almost 300,000 people now currently studying. This number, which has increased by 94 per cent since 2001, is set to rise to 450,000 by 2022.
“Almost all universities country-wide need more accommodation,” says Derek Lobo, CEO and sales broker at Rock Advisors. “The student market is one of the most under-served yet is the one of the best opportunities.”
He points to the rental returns in St. Catherine’s as a good example for investors. A four-bed townhouse there could be rented to a family for $1,300 per month but landlords could get $2,000 by charging per door to students.
