Canada's rental housing sector is demonstrating significant staying power, with large-scale organizations increasingly investing in purpose-built rental properties. This strategic focus on steady growth, rather than rapid expansion, is shaping the real estate landscape, particularly looking towards 2026. The trend involves acquisitions, repurposing of existing structures, and robust activity within Real Estate Investment Trusts (REITs).
Key Takeaways
- Purpose-built rental housing is attracting substantial capital investment from major organizations.
- Companies like TELUS are repurposing existing assets into modern, amenity-rich rental units.
- REITs, such as CAPREIT, are actively acquiring and consolidating high-quality rental properties in demand-heavy areas.
- Market outlooks suggest continued resilience and potential for renewed activity in the residential REIT sector.
TELUS Living's Strategic Repurposing
TELUS Living exemplifies this trend with its ongoing developments. In Vancouver's Point Grey neighborhood, the company is transforming a former telephone exchange into a six-storey, 55-unit rental building. This mixed-use development will feature retail spaces, co-working areas, social lounges, and pet-friendly amenities, all enhanced by smart home technology for improved connectivity, energy efficiency, and security. Manasweeta Bhatia, Vice President of Real Estate and Business Continuity at TELUS, highlighted the collaborative effort between government and the private sector in addressing housing needs. "By repurposing our real estate assets right here in Vancouver, we're making a meaningful difference in the community by turning technological progress into homes where families and individuals can thrive," Bhatia stated.
Beyond the Vancouver project, TELUS Living has two other developments underway in Nanaimo and Sechelt, set to deliver 254 units by early 2026. The company also has plans for 18 more properties across British Columbia, aiming to add over 3,000 rental homes in the next six years, with future expansion into Alberta and Quebec on the horizon.
CAPREIT's Investment Strategy
Major players in the investment sphere are also recognizing the long-term value of rental properties. CAPREIT, Canada's largest publicly traded residential REIT, has been actively pursuing strategic acquisitions. Throughout the past year, CAPREIT acquired high-quality rental properties in key locations such as Laval, Québec; West Vancouver; Vancouver's West End; and Victoria, BC. These acquisitions include newly constructed, amenity-rich buildings in high-demand neighborhoods, as well as vintage properties that allow for portfolio consolidation and upgrades.
CEO Mark Kenney emphasized the strategy's benefits: "Through this repositioning strategy, we’re enhancing the quality of our portfolio, cash flow profile and long-run earnings for unitholders, while also infusing capital and supporting affordable housing in the market, which importantly benefits the broader residential real estate landscape in Canada." CIO Julian Schonfeldt added, "Our strategy is focused on recycling capital into high-quality, high-performing properties situated in high-demand areas that have strong long-term growth prospects."
Market Outlook and Enduring Appeal
Broader market indicators also point to the sustained appeal of rental housing. Hazelview Investments' 2026 Global Public Real Estate Outlook anticipates supply constraints, resilient demand, and valuations that could stimulate renewed activity among residential REITs this year. The ongoing developments and investment strategies underscore that the rental housing market is not only maintaining its momentum but is poised to remain a stable and significant component of Canada's real estate sector.
