A Market Shift—Rental versus Condo

By Ibrahim El-Hajj, M.Sc, Arch., BQC, EQI, CCCA, OAA, MCGIC
Upward view of a modern skyscraper with reflective glass facade, capturing the blue sky and other buildings. Sleek, futuristic design exudes elegance.
A 60-storey condominium and hotel development at 88 Queen East in Toronto. Photos by Ibrahim El-Hajj

Ontario’s residential construction market is evolving. While condominium activity has moderated in response to affordability pressures, elevated interest rates, investor recalibration, and ongoing challenges to homeownership accessibility, purpose-built rental housing has emerged as a strong and necessary complement to multi-residential supply.

Against a backdrop of national housing shortages, the Canadian Mortgage and Housing Corporation (CMHC) estimates Canada will require approximately 3.5 million additional housing units by 2030, with Ontario expected to absorb a significant share of this growth. Many projects are now being strategically repositioned from condominium to rental to respond to housing demand, financing realities, and the need for long-term housing stability.

This transition has also been supported by recent provincial initiatives aimed at accelerating housing delivery, including measures to streamline approvals, encourage higher-density development, reduce development-related barriers, and support purpose-built rental construction through planning and financial incentives. These efforts reflect a broader recognition that rental housing will play a critical role in addressing Ontario’s long-term housing needs.

As rental housing assumes a larger role, the focus is shifting from comparison to alignment, ensuring that delivery frameworks reflect the permanence, scale, technical complexity, and long-term performance expectations of these assets.

Same building, evolving rules

Technically, condominiums and purpose-built rental buildings are fundamentally similar. They rely on comparable structural systems, building envelope assemblies, and mechanical complexity, and are expected to perform over similarly long service lives.

Condominium projects benefit from a well-established oversight model. Through Tarion’s B19 process, third-party consultants undertake structured reviews, inspections, and testing from design through to occupancy. Post-construction, independent audits typically verify as-built conditions against drawings, shop drawings, specifications, and performance criteria, ensuring that specifications are not only written, but actively validated.

In the rental sector, buildings are delivered to the same building code standards, and many owners, particularly those with long-term hold strategies, are increasingly implementing internal quality assurance (QA)/quality control (QC) programs and, in some cases, targeted third-party reviews. This flexibility allows for tailored approaches, but also introduces variability in how consistently specifications, envelope performance, and critical details are verified across projects.

Specifications exist on all projects; however, they are not self-enforcing. Their effectiveness ultimately depends on co-ordinated inspection, testing, and independent review. As delivery models evolve, this becomes an important area for alignment.

Tall, modern skyscraper under a blue sky, with reflective glass facade and grid-like design. Nearby buildings and bare tree branches surround it. Urban, imposing feel.
A 60-storey condominium and hotel development at 88 Queen East in Toronto by St. Thomas Developments was completed recently, with DS Consultants contributing to the project.

Innovation, speed, and verification

Accelerated delivery methods, including modular and off-site construction, as well as standardized design initiatives like Canada’s Housing Design Catalogue, are playing an important role in improving efficiency and scalability.

At the same time, Ontario’s construction industry remains exceptionally well-positioned to expand and innovate, particularly within the building science and advanced construction technology sectors. The increasing demand for housing presents an opportunity not only to build more but also to advance construction methodologies that can improve durability, sustainability, productivity, and long-term performance while supporting economic growth and technical specialization across the province.

Emerging technologies and methods such as self-healing concrete, 3D home printing, inflatable concrete systems, slipform construction, aerogel insulation, amphibious foundation systems, modular manufacturing, and accelerated bridge-launching technologies, and many others demonstrate the significant potential for Ontario’s construction sector to flourish through innovation and applied building science.

These approaches are not inherently deficient; in fact, they offer significant advantages in repeatability and QC. However, they introduce distinct technical considerations, particularly at interfaces, tolerances, and site integration points.

In modular construction, Canadian Standards Association (CSA) A277, Procedure for certification of prefabricated buildings, modules, and panels, provides a recognized certification framework for factory-built components, supporting compliance at the manufacturing stage. However, it does not replace project-specific verification of transportation impacts, handling, or on-site assembly, where building envelope continuity and system integration are most vulnerable.

Effective QA in these contexts typically includes mock-ups, plant audits, factory inspections, and staged on-site reviews. When these elements are well co-ordinated, speed and performance can be achieved concurrently. Where they are not, there is a risk that minor deficiencies may be replicated at scale before they are detected.

A construction site with a high-rise building under development, surrounded by cranes and modern skyscrapers against a clear blue sky, suggesting urban growth.
The Exchange at Square One by Camrost is a mixed-use development in Mississauga’s downtown core, with DS Consultants providing building science services.

Regulatory context and ownership responsibility

The regulatory landscape also reflects this evolution. The Home Construction Regulatory Authority (HCRA) governs homes built for sale, while rental buildings fall primarily under the building code and municipal oversight. The CMHC, although not a building performance regulator, introduces enhanced requirements through programs such as MLI Select and Apartment Construction Loan Program (ACLP), particularly around energy efficiency, accessibility, and documentation.

As noted by Paul De Berardis, vice president, building standards and engineering at the Residential Construction Council of Ontario (RESCON), purpose-built rental housing is typically developed under long-term financial models, often with 40- to 50-year horizons. This inherently aligns construction quality with long-term asset performance, as owners directly carry lifecycle costs and operational risk.

Similarly, Kerry Steer, senior vice president of construction at Tricon Residential, emphasizes that in the absence of prescriptive third-party frameworks, leading rental owners are proactively investing in internal QA and risk management processes to safeguard durability and long-term value.

Public and municipally supported projects further demonstrate how enhanced standards and oversight can be successfully integrated, particularly in areas such as sustainability and resilience.

A cloudy skyline view of Toronto featuring modern skyscrapers, the CN Tower, and a network of rail tracks and highways in the foreground.
Once completed, One Yonge will stand 106 storeys, making it the tallest residential building in Canada. DS Consultants is involved in the landmark project.

A constructive path forward

As rental housing continues to scale across a wide range of building types from high-rise towers to low-rise and modular developments, there is a clear opportunity for the industry to advance more consistent, risk-based QA/QC practices.

This is not about identifying deficiencies, but about recognizing that current frameworks are evolving alongside the market. Greater alignment in verification, whether through independent review, enhanced documentation, or standardized QA approaches, can help ensure that specifications are consistently executed and that long-term performance objectives are achieved.

The objective is not simply to deliver housing faster, but to deliver it with the durability, accountability, and resilience expected of buildings intended to serve for decades.

Author

Ibrahim El-Hajj, M.Sc, Arch., BQC, EQI, CCCA, OAA, MCGIC, is an architect with a Master of Science in Architecture and more than 25 years of experience as a building envelope consultant and building scientist. He is building code-qualified (BQC), a licensed EIFS auditor (EQI), an accredited director, a certified construction contract administrator (CCCA), a member of the Chartered Governance Institute of Canada (CGIC), and a Tarion field review consultant (FRC). El-Hajj is the founder and vice president of building science at DS Consultants, a BluMetric Company. Renowned in the building industry for delivering cost-effective solutions, he helps architects, developers, and builders reduce defective work, enhance quality, improve building performance, and uphold warranty. El-Hajj also sits on many technical committees at the CSA-NAFS and ULC Standards.