The Missing Middle with Mike Moffatt and Sabrina Maddeaux The Rental Paradox: Why Lower Prices Aren't Enough
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Oct 22, 2025 Max Steinman, CEO of RentSync and Rentals.ca, dives into the complexities of Canada’s evolving rental market. He discusses why rents are dropping while affordability remains a challenge, attributing it to stagnant mobility and the lack of purpose-built rentals. Steinman critiques the myths around financialization and elaborates on the downsides of rent control policies that backfire. He also compares living in purpose-built rentals versus condos, providing insights that every renter should know.
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Why Rents Are Falling Now
- Rents have fallen nationally because demand weakened while a wave of new units hit the market.
- Reduced mobility, fewer international students, and record condo/purpose-built completions created a perfect storm.
Falling Churn Shrinks Available Rentals
- Churn rates have fallen from ~30% historically to 10–15% today, shrinking available choices.
- Low churn concentrates scarcity in older, more affordable units and worsens the rental crunch.
Condo Stock Drives Poor Rental Experience
- Canada didn’t build purpose-built rentals for decades, so condos filled the gap but weren't designed for renters.
- That mismatch explains poor layouts, management issues, and a generally broken rental experience.