University cities face rental downturn after international student cap and the Home of the Week: Canadian real estate news for September 6

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Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Canadian university cities facing surprising rental market downturn

Rental brokers and property managers are noticing a phenomenon happening in Canadian university cities — demand for student housing has drastically fallen in the past few months, a major turn from a few years ago, where there were often frantic bidding wars for student housing in the months leading up to the start of the fall term, writes Frances Bula. Many are pointing to the cap on international students as a significant factor behind the drop. In January, the federal government lowered the cap of international study permits, after a public outcry over large increases in the number of international students coming to Canada. Many brokers said they’ve had to reduce their rent prices to attract new renters.

Bank of Canada’s Tiff Macklem forecasts rent decreases, but rise in home prices is possible after interest rate cut

Alongside the decrease in student housing rental prices, average monthly rental rates have also begun to decline for condos across the city. But after the Bank of Canada announced it was lowering its key interest rate for the third straight time to 4.25 per cent, its Governor Tiff Macklem says that even though mortage costs will come down, home prices might not drop with it, writes Rachelle Younglai. He said with overall inflation in the cost of renting and home ownership slowly coming down, home prices could actually see a slight rise. Home sales fell in Toronto and Vancouver in August, which experts say suggests buyers are still feeling the pinch of higher borrowing costs.

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Study suggests Toronto has room for millions of new homes, if only single-family housing wasn’t in the way

Is Toronto completely maxed out? According to architect and urban planner Naama Blonder, there’s space for 7.6-million new homes. The catch? Hundreds of square kilometres of single-family housing and business zones are in the way, writes Kate Helmore. The study, a theoretical exercise by Ms. Blonder’s firm Smart Density, isn’t actually recommending to bulldoze hundreds of kilometres of homes to make way for denser housing, but rather to show that Toronto is far from reaching its true capacity. The firm identified areas of the city that are close to major transit hubs, but aren’t using the land efficiently, usually because they’re dominated by neighbourhoods full of single-family homes. “We have this rhetoric of ‘We’re maxed out,’” Ms. Blonder said. “But when you actually look at the data, it doesn’t support that claim.”

Opinion: A Gen Z guide to what central bank rate cuts mean for investing, homebuying and emergency savings

Your 20s and 30s are usually the age to lean into investing risk, but after the latest interest rate cut by the Bank of Canada, now’s a time to cool it, writes personal finance columnist Rob Carrick. It seems counterintuitive to talk up savings accounts now that rates are falling, but young people in particular should add money to them now to prepare for a potential economic slowdown or recession. One way to do it? Find a challenger bank with accounts offering rates of at least 2.5 per cent, zero fees and full functionality to make debit purchases, pay bills and send e-transfers. These accounts are also the right place to save for a down payment on a home you expect to buy in the next few years.

Home of the Week: Red brick farmhouse a meeting place for a blended family

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6100 Concession Rd. 7, Uxbridge, Ont. – Full gallery here

Built in 1890, this 5-bedroom red-brick farmhouse sits on a 25-acre property on the edge of Uxbridge, Ont. A foyer at the entrance leads to a large family room with a beamed ceiling and fieldstone fireplace. A recently-renovated kitchen features built-in appliances and an island with a breakfast bar. An addition to the house contains an indoor swimming pool and sauna, surrounded by windows on four sides, with doors leading to the garden. A century-old barn also sits on the property, which the previous owners converted into an outdoor living space for the summers.