Many recent real estate market commentaries have been critical of privately owned housing, especially condominiums, being a major source of new rental supply. Implicit in this criticism is the call for more purpose-built rentals.

A whole host of factors determine the channels through which new rental housing is supplied. Some of the reasons why the supply is likely to come in the form of small-sized condominiums, instead of purpose-built, multi-family rental buildings, include lenders requiring developers to presell a significant portion of the planned dwellings, the youthification of urban demographics, capital gains taxes, rent control regulations and high land prices.

The growing housing affordability challenges in urban Canada have led many to search for the causes behind rapidly escalating house prices. Some said foreign homebuyers were primarily responsible for the sudden spike.

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