Exchange Magazine Fall 2024

REACHING

NEW HEIGHTS

EXCHANGE

MAGAZINE

FALL 2024

WHAT’S INSIDE:

AI & Real Estate

The Ethics Index Unveiled

Professionalism in Focus

BC Strata Report Overhaul

How Toronto is Growing

2 REIC EXCHANGE, FALL 2024

This publication, Exchange Magazine Fall 2024, is protected by copyright law. No part of this magazine may be reproduced,

distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical

methods, without the prior written permission of the Real Estate Institute of Canada (REIC), except in the case of brief quotations

embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

The content in Exchange Magazine Fall 2024 includes original articles and contributions from various authors. The Real Estate

Institute of Canada (REIC) does not endorse or guarantee the accuracy or reliability of any views, opinions, or information presented

by contributors. Any reliance you place on such information is at your own risk.

A Closer Look: As you explore this edition, pause to appreciate Toronto’s evolving skyline captured on our

front cover. The CN Tower stands tall, while new landmarks like The One at Bloor St. W., Canada’s future

tallest skyscraper, rise to reshape the city—just as REIC continues to elevate the real estate industry,

reaching new heights in professionalism and excellence.

A heartfelt thank you to all contributors and supporters who continue to join us on this transformative

journey, helping us shape the future of Canada’s real estate industry.

Front Cover: Image courtesy of Anurag Jamwal – Pexels.com.

WWW.REIC.CA 3

n an industry as dynamic

and impactful as real estate,

the conversation around

ethics, professionalism, and

the future of our field is more

important than ever. This edi-

tion of Exchange Magazine is

a celebration of that dialogue,

bringing together voices from

across

the

industry—REIC

members, industry leaders,

legacy

professionals,

and

academics—all united by a

common goal: to build and

better the future of real estate

together.

We’re proud to showcase

perspectives that challenge

the status quo and inspire

action. You’ll hear from sea-

soned

professionals

who

have shaped the industry, ac-

ademics who are redefining

what’s possible, and emerg-

ing leaders who are the future

of real estate. Together, we

explore what it means to el-

evate standards, embrace in-

novation, and hold ourselves

accountable to the highest

levels of ethical practice.

As you read through this edi-

tion, I encourage you to think

about how you can contribute

to this ongoing conversation.

Whether it’s through your

own professional develop-

ment, advocating for higher

standards in your communi-

ty, or simply sharing these in-

sights with others, each of us

has a role to play in shaping

the future of real estate.

Thank you for joining us on

this exciting journey. Let’s

continue to lead with integri-

ty, elevate our standards, and

work together to ensure that

the real estate industry re-

mains a pillar of trust and pro-

fessionalism for generations

EDITOR’S

NOTE

The REIC 2024-25 Board of Directors from left to right: Pierre-André LeBlanc, Don Inouye (CEO), Neil Fawcett, Pierre Le Sieur,

Robin Hardman, Donna Harding, Yolanta Scott, Satinder Chane, Ron Fraser, Salima Jaafari, and Grant Stevenson.

Don Inouye, CEO, Real Estate Institute

of Canada.

4 REIC EXCHANGE, FALL 2024

TABLE OF CONTENTS

INTRODUCTION

EMPOWERING THE NEXT GEN

EXPANDING HORIZONS

THE CANDIDATE JOURNEY

CREDIBILITY UNLOCKED

PERSERVERANCE & PROFESSIONALISM: ANNA MICHAELIDIS’

FRI JOURNEY

THE REIC 2024 LEADERSHIP RETREAT

EQUIPPING ONTARIO FOR SUCCESS IN REAL ESTATE

THE CRU DESIGNATION: ELEVATING PROFESSIONALS

IN THE CARIBBEAN

NAVIGATING REAL ESTATE FINANCE: MAXIUM D’SOUZA’S JOURNEY

FROM ANAYLST TO ENTREPRENEUR: NICK DOLBILOV’S CRP JOURNEY

EMPOWERING OUR TEAM: THE ARM® AT OSGOODE PROPERTIES

ADOPTING ARTIFICIAL INTELLIGENCE IN REAL ESTATE

THE CHARLESTON REAL ESTATE LANDSCAPE

USING PROCESS MAPPING TO REDUCE PLANNING

APPROVAL TIMES

ETHICS: SAY IT, DO IT

BUILDING EXCELLENCE: THE GROWING PARTNERSHIP

BETWEEN REIC & MACEWAN

THE FUTURE OF CREDIBILITY: A WORD FROM ACCREDIBLE’S CEO

WWW.REIC.CA 5

INDUSTRY VOICES

BUILDING THE FUTURE

A LEGACY OF LEADERSHIP

COMPLIANCE: A PATH TO ENHANCING SECTOR PROFESSIONALISM

HOW TORONTO IS GROWING INTO ITS GROWTH

JIM HESTER: AN FRI LEADER

THE ALBERTA REAL ESTATE FOUNDATION: ALBERTA’S

BEST KEPT SECRET

HOW PROPERTY MANAGERS CAN LEAD THE CHARGE IN

THE FIGHT FOR MORE AFFORDABLE HOUSING

UOFT SCHOOL OF CITIES & THE LEVEL UP CHALLENGE

JOAN MALAY: TRANSFORMING REAL ESATE THROUGH

DEDICATION & EDUCATION

ROY G. WILSON: A LIFETIME OF IMPACT IN REAL ESTATE

RAISING THE BAR FOR REAL ESTATE PROFESSIONALS IN CANADA

NAVIGATING THE NEW LANDSCAPE OF STRATA DEPRECIATION

REPORTS IN BRITISH COLUMBIA

LEADING THE WAY IN PROFESSIONALISM

CANADA’S NATIONAL HOUSING STRATEGY: PROGRESS,

CHALLENGES, & THE ROAD AHEAD

PROPERTY MANAGEMENT: NOW & IN THE FUTURE

DIGITAL PROOF, REAL TRUST

INTRODUCING THE ETHICS INDEX

6 REIC EXCHANGE, FALL 2024

THE REIC 2024

LEADERSHIP RETREAT:

BREATHING

NEW LIFE INTO

THE INSTITUTE

he REIC 2024 Leadership Retreat, held

at the picturesque Pillar and Post Inn &

Spa in Niagara-on-the-Lake, was a re-

sounding success. This year’s theme,

“Breathing New Life into the Institute,” perfect-

ly captured the spirit of transformation and

renewal that has characterized REIC over the

past year.

Attendees had the opportunity to engage with

thought leaders, participate in dynamic ses-

sions, and explore new ideas and technologies

relevant to the Canadian real estate industry.

The retreat balanced insightful sessions with

opportunities for relaxation and networking,

fostering a sense of community and collabora-

tion among members.

The event also marked the introduction of

our 2024-2025 Board of Directors, a group of

dedicated professionals poised to guide REIC

through the coming year. Their leadership and

vision will be instrumental in driving our or-

ganization forward and achieving our strategic

goals.

We are incredibly grateful for the participation

and support of our members, whose enthusi-

asm and commitment continue to inspire and

propel REIC to new heights. The 2024 Leader-

ship Retreat was not just a celebration of our

achievements but also a launchpad for future

innovations and successes.

As we reflect on the insights and connec-

tions made during the retreat, we are excited

to carry forward the momentum into our fall

2024 edition of Exchange Magazine. This edi-

tion delves into the innovative strategies and

forward-thinking approaches that are shaping

the future of real estate. Thank you for being an

essential part of this exciting journey. Together,

we will continue to build a brighter future and

elevate the standards of excellence in the real

estate industry.

Pictured here: Margaret Gourlay and Winnie Tran at the

2024 REIC Leadership Retreat.

WWW.REIC.CA 7

8 REIC EXCHANGE, FALL 2024

EMPOWERING

THE NEXT GEN

t the Real Estate Institute of Canada (REIC), we believe

in investing in the future of our industry by empow-

ering the next generation of real estate professionals.

Our Student Membership Program is designed to pro-

vide aspiring real estate leaders with the resources, connec-

tions, and knowledge they need to kick-start their careers and

make a lasting impact.

What is the Student Membership Program?

The REIC Student Membership Program offers post-second-

ary students enrolled in real estate, property management, or

a related program a unique opportunity to gain early access to

industry insights and professional networks. By joining this pro-

gram, students can bridge the gap between academic learning

and real-world application, setting the stage for a successful

career in the real estate industry.

How the

REIC Student

Membership is

empowering the

next generation

of real estate

professionals

with knowledge,

connections, and

opportunities.

WWW.REIC.CA 9

Why Join the Student Membership Program?

Access to Industry Resources

As a student member, you’ll have access to a

wealth of resources that are typically reserved

for seasoned professionals. This includes in-

dustry insights, events, and leadership oppor-

tunities that will deepen your understanding of

key concepts and current trends.

Networking Opportunities

The real estate industry is built on relation-

ships, and the Student Membership Program

connects you with a network of industry pro-

fessionals who can provide mentorship, guid-

ance, and career opportunities. Attend REIC

events, participate in webinars, and join discus-

sions that will expand your professional circle.

Career Advancement

Gain a competitive edge in the job market with

the REIC designation pathways. While you’re

still a student, you can begin working towards

obtaining a prestigious REIC designation, which

will distinguish you as a leader in the industry

upon graduation.

Eligibility and How to Join

If you’re a post-secondary student enrolled in

a real estate, property management, or related

program, you’re eligible to apply for REIC’s Stu-

dent Membership Program. The application

process is simple:

1. Apply Online: Complete the online applica-

tion form on the REIC website.

2. Submit Required Documents: Provide proof

of enrollment in a relevant post-secondary

program.

3. Start Your Journey: Once your application is

approved, you’ll receive access to all the ben-

efits of the program!

Joining REIC as a student member is not just

about gaining resources—it’s about becoming

part of a community that is dedicated to ex-

cellence, ethics, and the future of real estate.

Whether you’re just beginning your studies

or are nearing graduation, the REIC Student

Membership Program is here to support you

every step of the way.

At REIC, we proudly collaborate with institu-

tions like Humber Polytechnic, MacEwan Uni-

versity, and UBC Sauder School of Business,

offering real estate students the opportunity

to gain industry-recognized designations and

professional development after graduation.

Our partnerships with these esteemed edu-

cational providers ensure students receive a

well-rounded education, combining theoret-

ical knowledge with practical skills. Through

REIC’s

specialized

programs,

mentorship,

and networking opportunities, graduates are

equipped to excel in the real estate industry.

We’re committed to supporting students on

their journey from classroom to career, helping

them build a strong foundation for success in a

competitive and dynamic field.

10 REIC EXCHANGE, FALL 2024

magine a program that turns aspirations into

achievements, elevating careers in the Real

Estate industry. Erin Gray, associate dean of

Program Delivery and Nelia Louro, program

manager of Association and Professional Pro-

grams from Education and Training Solutions

(ETS) at Humber, highlighted such a program

during their presentation at the Real Estate In-

stitute of Canada (REIC) Leadership Retreat on

June 17. They showcased Humber’s innovative

real estate programming and curriculum de-

signed for non-traditional learners, emphasiz-

ing their collaboration with REIC to enhance

continuing education in ethics for Condomin-

ium Managers.

Humber’s Education and Training Solutions

Department is Equipping Ontario Learners for

Success Accross the Real Estate Sector.

EQUIPPING ONTARIO FOR

SUCCESS IN

REAL ESTATE

By Sylvie Lendvay (she/her), Media Relations & External Communications Specialist, Humber Polytechnic

Erin Gray, Associate Dean - Program Delivery, Humber Polytechnic, right.

Nelia Louro, Program Manager - Association and Professional Programs, left.

WWW.REIC.CA 11

Humber’s Condominium Management certifi-

cate program is proving to be a game-changer

for aspiring property managers. Graduates are

singing their praises, with one even calling it

“the best career decision” they’ve ever made.

The program was designed in collaboration

with the Condominium Management Regula-

tory Authority of Ontario (CMRAO) and is set-

ting new standards in education, offering a dy-

namic pathway to success in an industry that’s

ripe with opportunities.

As the condominium management industry

faces a shortage of property managers, the

demand for qualified professionals is surg-

ing. Wanda Buote, Humber’s dean of educa-

tion and training solutions, highlights this as a

golden opportunity for those looking to switch

careers. “The sector is a hidden gem for indi-

viduals looking to leverage their business acu-

men and customer service skills in a variety of

roles,” she said.

Humber is well-regarded for its ability to deliv-

er relevant, high-quality, industry leading cur-

riculum to the real estate, condominium and

property management sectors. With a strong

industry reputation for credential testing and

delivery of professional designation programs,

Humber’s condominium management pro-

gram covers critical aspects of condominium

management law, relationship building, build-

ing operations and maintenance, condomin-

ium financials, and the operational quality of

both residential and commercial properties.

This preparation ensures that graduates are

ready to enter the field, excel and lead.

To get started, individuals need to complete

CMRAO’s limited license course, ‘Excellence

in Condominium Management’, and seek em-

ployment, all while working towards the edu-

cational requirements for a General License.

The condominium management program, ac-

credited by the CMRAO, was developed with

input from employers and industry experts, en-

suring that learners acquire the skills needed

to thrive. It features five stackable micro-cre-

dentials that combine online and instructor-led

learning. Graduates receive a Certificate of

Completion after successfully finishing the five

compulsory courses and regulatory exams.

12 REIC EXCHANGE, FALL 2024

Jessica Allen, a condominium management

program graduate, juggled her studies with a

full-time job as a portfolio manager. She found

the program’s flexibility crucial to her success.

“The program seamlessly bridged classroom

learning with real-world experiences,” she said.

“Enrolling in this course has proven to be a piv-

otal decision. It equipped me with the essential

tools and knowledge crucial for success in my

career. I strongly encourage others looking to

grow their careers to consider this invaluable

opportunity.”

To maintain their licenses, general license

holders are required to complete ten Contin-

uing Professional Education (CPE) units annu-

ally. Humber simplifies this process for Ontario

condominium managers, offering a stream-

lined path to renew their general licenses

and earn their CPE credits. Licensed condo-

minium managers can select from a range of

pre-approved activities to build their CMRAO

CPE credits, demonstrating their competency

across the ten professional categories set by

the CMRAO. In partnership with REIC, Humber

has introduced a CPE credit in ethics, align-

ing with Ontario’s condominium management

competency standards.

In addition to the Condominium Management

program and as an example of the strides

Humber is taking to build pathways and sup-

port learners in real estate related programs,

Humber is now offering scholarship opportu-

nities for learners in the Real Estate Salesper-

son Program. The inaugural scholarships were

awarded earlier in July, thanks to the generous

support of Royal LePage Meadowtowne Real-

ty Brokerage. Kimberley Kenney, a scholarship

recipient, is transitioning into real estate after

over 12 years in marketing and communica-

tions. “The scholarship enabled me to pursue

essential training and licensing programs that

will build a solid foundation for my new career,”

she said.

These scholarships are the first to recognize

academic achievement for learners in the

Real Estate Salesperson Program, supporting

non-traditional learners committed to lifelong

learning and professional development. “Es-

tablishing scholarships for learners in the Real

Estate Salesperson Program within the ETS

department is not just an investment in edu-

cation; it is an investment in the future of the

industry and our communities,” said Gray, As-

sociate Dean, Program Delivery, ETS.

Alejandra Padron, another scholarship recip-

ient, blends her background in urban plan-

ning with real estate sales to contribute to

the development of sustainable and inclusive

neighbourhoods. “My ultimate goal is to assist

clients in finding their dream homes while con-

tributing to thriving communities,” she said.

Awarded to eight deserving learners each year

for the next two academic years, Royal LeP-

age Meadowtowne’s Best and Brightest Schol-

arships recognize top-performing students in

good academic standing.

For more information about Humbr Polytech-

nic’s professional programs, visit the Continu-

ous Professional Learning webpage.

THE SCHOLARSHIP ENABLED ME

TO PURSUE ESSENTIAL TRAINING

AND LICENSING PROGRAMS THAT

WILL BULD A SOLID FOUNDATION

FOR MY NEW CAREER.

WWW.REIC.CA 13

ADOPTING

ARTIFICIAL

INTELLIGENCE

IN REAL ESTATE

By Mutaza Haider, PHD, Ted Rogers School of Management

Exploring AI’s impact in real estate: from VR tours and

NLP insights to algorithm-driven strategies.

he emergence of ChatGPT in the win-

ter of 2022 brought artificial intelli-

gence to the forefront of public and

corporate attention. From schoolchil-

dren to multinational corporations, generative

AI quickly captured the imagination of a broad

audience—especially large businesses ea-

ger to leverage innovative technology for in-

creased profitability.

Machine learning has a more established track

record than generative AI. Generative AI is, in

fact, an evolution of deep learning algorithms,

enabling systems to simulate conversations

and respond to prompts and questions. As a

result, machine learning has been adopted

across numerous industries, optimizing hu-

man-computer interactions and driving oper-

ational efficiency.

However, the real estate sector has been rel-

atively slow in adopting artificial intelligence

and machine learning technologies. This brief

review highlights several applications of ma-

chine learning within real estate. It identifies

potential opportunities for deploying these

technologies to improve efficiency, reduce or

eliminate redundancies, and optimize oper-

ations, ultimately leading to lower costs and

higher profits.

To explore this potential, I reviewed academic

research documenting using machine learning

and deep learning algorithms in the real es-

tate sector. The review showcases the range of

current applications and underscores the vast

opportunities for expanding machine learning

to benefit clients and service providers in real

estate. I also highlight the pitfalls of over-rely-

ing on algorithms.

Early adopters of real estate algorithms have

capitalized on using geographic information

systems (GIS) to extract valuable insights from

spatial data. Over time, this strategic use of

algorithms has translated into enhanced prof-

itability driven by aggressive data analytics.

Some researchers observed that “location, lo-

14 REIC EXCHANGE, FALL 2024

cation, location has now become data, data,

data—paired with the knowledge of how to

bring that data to life.”

With advancements in computing power, data

storage, and digital visualization technologies,

many real estate firms now employ virtual real-

ity (VR) and 360° property tours to market list-

ings to prospective buyers from afar. Investors

who may be based in one jurisdiction but are

interested in properties in another can use VR

as a preliminary screening tool to determine

whether a property warrants further consider-

ation. For listing brokers, virtual reality opens

up the possibility of marketing properties on a

global scale.

Natural Language Processing (NLP) is another

powerful tool widely used to extract sentiment

and insights from unstructured data, such as

emails, news articles, and social media posts.

By capturing consumer sentiment in real-time,

NLP provides valuable input for models that

predict economic outcomes using structured

data. The advent of generative AI has further

lowered the barriers to entry, making it easier

for companies to deploy algorithms that ex-

tract meaningful value from textual data on a

large scale.

Recently, deploying specialized algorithms,

such as genetic algorithms, has enabled de-

velopers to estimate future prices for planned

real estate projects. Since construction is a

lengthy process that can take years to com-

plete, estimating the prices of new dwellings

set to hit the market years down the line in-

volves navigating multiple risks. However, new

machine learning algorithms provide builders

and developers with a range of future price

expectations, offering critical insights to either

move forward with a project or adjust its tim-

ing.

While the previous examples have demon-

strated how machine learning can enhance

profitability and operations, it is equally im-

portant to consider the limitations of current

technology. Overreliance on such algorithms

can lead to significant losses, as illustrated by

the experience of Zillow, a tech-driven real es-

tate brokerage that has grown rapidly since its

founding in 2006.

Zillow was among the first real estate firms to

leverage its extensive real estate data to de-

velop innovative products and services. Us-

ing advanced algorithms and a vast amount

of real estate transaction data, Zillow created

Zestimate—automated estimates of housing

values. The company used machine learning

algorithms along with dwellings’ structural

and locational attributes to predict their prices.

Confident in the accuracy of these estimates,

Zillow launched a subsidiary called Zillow Of-

fers in 2018, which purchased homes based on

their valuation model. The goal was ambitious:

to build a business generating $20 billion in

annual revenue within a few years. Their confi-

dence stemmed from the predictive accuracy

of their algorithms, which encouraged them to

buy properties listed or transacted at prices

lower than the predicted values.

However, by late 2021, after incurring losses

amounting to $421 million, Zillow shut down

Zillow Offers. In a paper published in the Jour-

nal XYZ, the authors cited Zillow’s CEO, Rich-

ard Barton, who stated that “the AI’s inability

to accurately predict home prices caused the

failure” of Zillow Offers. The authors further

argued that the failure was not solely due to

WWW.REIC.CA 15

limitations in the home price prediction algo-

rithms but perhaps more a result of the com-

pany’s “focus on hyper-growth over profitabil-

ity,” which led to operational changes that did

not adequately balance estimated price pre-

dictions with actual purchase price decisions.

Simply put, based on algorithmic predictions,

the price at which Zillow Offers bought proper-

ties was not aligned with what potential buyers

were willing to pay, resulting in Zillow overpay-

ing for homes.

The convergence of algorithms, technology,

and real estate has given rise to innovative

business models collectively known as prop-

tech. Beyond the examples already discussed,

proptech encompasses a wide range of tech-

nological advancements: from platforms that

match buyers and sellers more effectively,

to leveraging real-time data from Internet of

Things (IoT) sensors for property management,

blockchain technology for creating self-cor-

recting property ledgers, automated systems

for form completion and data entry, drones for

monitoring physical assets, fintech solutions

for real estate financing, and Building Informa-

tion Modelling (BIM) for more efficient planning

and construction. This intersection of technol-

ogy and real estate is driving greater transpar-

ency, operational efficiency, and profitability

across the sector.

The real estate sector’s future success will

depend on its ability to adopt technology and

algorithms judiciously, avoiding reckless or

superficial implementations. The key will be

creatively transforming traditional brick-and-

mortar business processes into digital-first,

data-driven strategies that add value. As artifi-

cial intelligence continues to evolve beyond its

nascent stage and communication networks

advance beyond today’s 5G capabilities, a for-

ward-looking, tech-centric approach could

revolutionize real estate. Such a strategy has

the potential to enhance value and build great-

er trust and credibility within the industry, pav-

ing the way for a more transparent, efficient,

and profitable future.

Murtaza Haider is a Professor of Real Estate

Management and Data Science, and the As-

sociate Dean of Graduate Programs at the Ted

Rogers School of Management, Toronto Metro-

politan University. He is also a syndicated col-

umnist with Postmedia, where he writes weekly

columns on urban economics for the National

Post and other publications.

16 REIC EXCHANGE, FALL 2024

BUILDING EXCELLENCE:

THE GROWING

PARTNERSHIP

BETWEEN REIC

& MACEWAN

By Dr. Richard Perlow, Dean, School of Busines, MacEwan University

A Word from the Dean of the School of Business

at MacEwan University.

am delighted to have a partnership between

REIC and the MacEwan School of Business.

My business school offers students a varie-

ty of programs at the four-year degree and

two-year diploma levels. One program that is

up and coming is our Property Management

minor.

MacEwan’s Property Management minor con-

sists of completing five courses. The introduc-

tory course introduces students to the field

of property management, where they learn

about the scope and responsibilities of com-

mercial and residential property managers.

Our client relations course offers students an

understanding of client relations in property

management through exploration of the com-

plex social, technological, and legal issues

businesses and society deal with. In revenue

management, students learn the application of

the accounting function in managing proper-

ties, the various types of reporting utilized in

the industry, and how to interpret those reports

that lead to accurate conclusions and sound

business decisions. Students learn about rel-

evant legislation and issues in the day-to-day

management of properties and business units

in our legal issues course. Finally, in the com-

mercial property management course, stu-

dents learn the knowledge required to man-

age commercial properties such as industrial

holdings, office buildings and retail outlets.

The Property Management minor has distinc-

tive features. One of the features that I like

about this program is that, as part of classroom

activities, students tour different facilities to

learn about the operations and management of

that facility. We also offer co-op and work-in-

tegrated learning opportunities. Students gain

valuable experience performing activities that

property management managers execute.

We are in the process of building a new School

of Business facility. The building can accom-

modate 7,500 students. The building contains

WWW.REIC.CA 17

40 classrooms, 20 collaboration spaces, and

15 study spaces. This facility will provide the

space property management students need

to enhance their learning.

Our Property Management program has grown

both in content and popularity. From offering

one introductory course in 2016, we now have

a government-approved minor consisting of

the five courses mentioned above. Students

taking property management courses have in-

creased over time. In the last academic year,

we had 31 students enrolled in our introducto-

ry course and 26 declared a Property Manage-

ment minor. In June 2024, six students gradu-

ated with the minor on the transcript.

We offer a high-quality program that our ex-

ternal partners recognize. The Weidner Foun-

dation’s generous donation will support prop-

erty management students. This attests to our

external community partners recognizing the

quality of our program. We are also delighted

with the partnership between MacEwan and

REIC. As REIC offers the designation in prop-

erty management, it was important to develop

a rigorous student experience to prepare our

students better to succeed in their pursuit of

the property management designation. In our

collaborative partnership, we are fortunate to

have REIC recognize the quality of what Mac-

Ewan offers by granting our students course

waivers as they pursue the property manage-

ment designation.

I look forward to further development and

growth of the Property Management program

to meet the needs of the property manage-

ment industry.

Dr. Richard Perlow

Dean, School of Business

MacEwan University

Edmonton, Alberta

For more information on MacEwan’s Property Managment Program, visit their website.

Dr. Richard Perlow, Dean, School of Business, MacEwan University.

18 REIC EXCHANGE, FALL 2024

USING PROCESS MAPPING

TO REDUCE PLANNING

APPROVAL

TIMES

By Meet Shah, Doctoral Candidate, Ted Rogers School of Management

Meet Shah analyzes why streamlining the permit

approval process is key to solving Canada’s housing

affordability crisis.

ousing affordability in Canada has re-

mained a persistent concern for de-

velopers, policymakers, and home-

buyers, and its relevance has only

grown. The increase in interest rates since

March 2022, coupled with an inefficient hous-

ing supply, has exacerbated the affordability

crisis for many Canadians. The Bank of Can-

ada’s recent rate cuts have failed to alleviate

affordability concerns of struggling buyers as

sales remain lower than the long-term trends

while listings are unusually high.

The Bank of Canada’s Housing Affordability

Index has surged by 16 percent between the

first quarter of 2022 and the second quarter of

2024, indicating that households now spend

half of their income on their shelter costs—a

stark increase from an index of 32 percent in

2020. Building more homes is imperative to

revert to the pre-pandemic long-term aver-

age spending of 35 percent of household in-

come on housing. While recent interest rate

cuts may improve housing affordability, they

must be complemented with a large increase

in housing construction. However, planning

delays are in the way of producing millions of

houses fast.

The Role of Housing Supply

A significant factor in the worsening of hous-

ing affordability is the supply of housing, which

has not kept pace with population growth.

Since the seventies, the population-adjusted

rate of housing construction has declined and

never reached the levels observed earlier. Al-

though lowering interest rates or limiting pop-

ulation growth by restricting immigrant flows

might offer temporary relief, these measures

are less effective in the long run than the

potential benefits of increasing the housing

supply, which can stabilize prices, reduce the

cost of living, and enhance mobility opportu-

nities for young workers.

Challenges in Increasing Housing Supply

Increasing the housing supply to improve af-

fordability is fraught with challenges, primarily

due to the inherent delays in producing new

homes. In collaboration with the City of To-

ronto’s Planning Department, the Urban An-

alytics Institute (UAI) at Toronto Metropolitan

University is investigating building permits to

identify determinants of approval delays. This

research aims to provide insights to stream-

line the developmental process and address

WWW.REIC.CA 19

housing supply issues.

The Permit Approval Process

The study of developmental approv-

als offers a proxy for future residential

growth, as it marks the initial phase of

new home development and the first

potential delay point. Our research

employs process mapping to identify

procedural and other factors contrib-

uting to excessive processing times for

a subset of applications. The process

begins with developers preparing the

documentation outlined in the applica-

tion package manual. The application

is then circulated for technical review

to internal divisions and external stake-

holders. Feedback is provided to the

applicant, who must address all com-

ments before resubmitting the appli-

cation. A public meeting with the Com-

munity Council and other stakeholders

follows, leading to a recommendation

to the City Council for a final decision.

Findings from the Study

Our study reviews development appli-

cations with a cumulative processing

duration exceeding 1,000 days from

submission to City Council approval.

Among the 71 applications analyzed, it

takes an average of 244 days for an ap-

plication to reach the community con-

sultation phase. From this phase to the

development, revision, and resubmis-

THE SUPPLY OF HOUSING HAS NOT KEPT

PACE WITH POPULATION GROWTH.

sion phase, the average duration is 930 days. This in-

cludes time for developers to revise applications and

for city officials to provide feedback. Post-resubmis-

sion, the average time for City Council approval is 210

days. Thus, it took over two years for a development

to be approved for the 71 studied applications, which

took over 1,000 days in the approval cycle.

Furthermore, the study employs survival (Cox Propor-

tional Hazard) models to quantify approval type dif-

ferences by application attributes. Preliminary results

indicate that approximately 25 percent of rezoning ap-

plications are completed within one year, compared

to 10 percent of site plan applications. These findings

align with the Municipal Benchmarking Report by Al-

tus Group Economic Consulting , which reports av-

20 REIC EXCHANGE, FALL 2024

erage approval timelines of 20–24 months for

GTA-wide rezoning and site plan applications.

Conclusion

Excessive time spent in the permit approval

process significantly hinders the start of new

housing developments. Addressing these inef-

ficiencies through streamlined municipal gov-

ernance, improved business operations, and

better documentation preparation is crucial for

increasing housing supply. Such measures are

essential for stabilizing housing prices and en-

hancing affordability, benefiting the Canadian

housing market and its participants.

Altus Group Economic Consulting. (2022). Mu-

nicipal Benchmarking Study. In Greater To-

ronto Area (2nd ed.). https://www.bildgta.

ca/wp-content/uploads/2022/09/Munici-

pal-Benchmarking-Study-2022.pdf.

Meet Shah, Doctoral Candidate, Ted Rogers

School of Management.