Multi-residential investments in Canada are offering institutional investors a stable alternative in the real estate market, according to Alexandra Katz, managing partner and head of institutional relationships at Hazelview Investments, during the Canadian Investment Review’s 2025 Endowment & Foundation Investment Forum.
The investments provide stability over time and downside protection due to their countercyclical characteristics and diversified tenant base, she said. While some sectors in the real estate market are impacted by behavioural trends, with multi-residential, the need for homes generates stability in portfolios, she added, noting institutional investors can also achieve predictable cashflows from the asset class.
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Multi-resident investments also carry significant exposure to environmental, social and governance metrics, said Katz. And the social component is at play, she added, because it’s an investment proposition for communities in need of more homes.
“When you’re thinking about somebody’s home, it’s not just about an investment, it’s about where people live. . . . It’s about understanding the nuances between the different sub-markets across the country and knowing what kinds of things you can add to the buildings, what kind of benefits you can add that will resonate with those residents.”
The Canadian multi-residential market is expected to benefit from attractive supply and demand dynamics, said Katz. Indeed, immigration patterns in Canada accelerated to a peak of 1.2 million people entering Canada in 2023, which significantly drove up demand for rental units.
“We think the market needs to catch up,” she said, adding population growth is now expected to decline due to changes to Canadian immigration policy. “We saw market rent growth going through the roof. Essentially, this will give the market a chance to stabilize.”
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Many drivers of demand will continue to support strong sector fundamentals, noted Katz. Home ownership declined 2.5 per cent between 2011 and 2021, she said, indicating an increase in demand for rental units in the country. Demographic changes have also created longer average rental periods, adding significant pressure to the rental pool. And some of the roadblocks on the supply side, she noted, include construction costs, which have gone up by about 45 per cent since the coronavirus pandemic.
“If we are in a softer economic environment, that means fewer people will feel like they have the flexibility to buy homes and that will also drive demand for rental units.”
Katz is expecting supply to decline onward from 2027 due to slower construction starts, creating a backdrop for strong risk-adjusted returns in the multi-residential sector.
Read more coverage of the 2025 Endowment & Foundation Investment Forum.