‘Increasing demand’ for secondary units as homebuyers grapple with rate hikes
Global News
Canada has recently seen a ramp up in construction of secondary suites, like basement apartments and laneway homes. There is growing appeal to buy them, real estate experts say.
As Canadians grapple with interest rate hikes and high mortgage payments, there is a growing demand for houses with secondary units, like basement apartments and laneway homes, real estate experts say.
Recent changes in zoning bylaws in cities across Ontario and Alberta have offered greater flexibility for building new secondary suites that have their own private entrance in pre-existing homes.
This comes at a time when the country is in the midst of a housing crisis with not enough properties being built for a growing population.
Secondary dwellings “are a low-hanging fruit” that can not only help solve the housing supply issue Canadians are facing but can also offer much-needed rental income to homeowners facing high mortgages, says Ken Bekendam, CEO and founder of legalsecondsuites.com.
His company helps homeowners and real estate investors in Ontario create additional units in pre-existing properties.
“We’re seeing an increasing demand for (such services),” Bekendam told Global News.
“A lot of first-time homebuyers are more interested in homes that already have an income-producing suite in it or that can easily be added.”
The Bank of Canada raised its key interest rate for a second consecutive decision last week, and there are concerns about how possible future hikes could further put a wrench in home-buying plans for many Canadians.