It only takes one look at the crane-filled skyline anywhere in Waterloo, and the spring blossom of billboards announcing “Available for Rent this Fall!” to see that our region is setting itself up for a big problem. While student enrolment at both the University of Waterloo and Laurier University is projected to be on a moderate rise, the housing available is increasing at a far faster pace. It doesn’t take much math to realize that this will cause a very legitimate housing surplus in the near future for the Waterloo region. An estimated 7000 new beds are to become available within the next few years, the majority of which are high-density high-rises with three- to five-bedroom units typically aimed at students.
Currently, the Waterloo Town and Gown Committee estimates approximately 1200 surplus beds of student housing. So why would anybody in their right mind build even more housing? Simple—student housing is a thriving market, and one where customer loyalty is, at maximum, only a five-year investment. With many students leasing an apartment or house for twelve months at a time and new students arriving every year to replace graduates, new housing placements have just as much chance to succeed as established venues. In fact, they have the added incentives of having completely new, clean units to offer tenants, and no anecdotal tales of poor service to deter potential tenants.
Before we go decrying this surplus as a travesty, there are some notable benefits for us and the community as a whole from this situation. Most notably, a high supply-to-demand ratio typically benefits the customers more than anything—different housing companies will be forced to offer more competitive pricing and higher-quality units in order to attract and maintain business. It typically also means a more wide variety of housing options, including price ranges, locations, amenities, and unit size.
In a similar vein, the sort of high-density accommodation we see being developed is much better suited for student tenants, as both the buildings and property maintenance is covered by the property owners. This can mean that the usual unsightly ‘student neighbourhoods’ with badly maintained lawns and run-down bungalows should, in theory, become less commonplace, and allow for the development of housing intended for families and young professionals, or for non-residential developments—a sector in which Waterloo needs all the help it can.
To put things into perspective, local counsellors have recently discussed the need for a potential development grant in the Waterloo Uptown region, similar to one passed in 1999 that exempted developers from certain development charges, with an associated price tag of nearly $10 million. After the end of the grant’s lifespan, residential development dropped by 49 percent, while non-residential development dropped by a massive 96 percent. Without improvements to the Waterloo region, it will be more difficult to encourage potential residents to move and occupy the housing that has been built.
There are also some associated downsides to having a large excess of student housing in Waterloo. Most obviously, when there are fewer students than beds that need to be filled, there are undoubtedly going to be momentary losses for investors. Most at risk are small-property owners and landlords, the people who own and lease their property independently, not as a company.
Consequentially, the dominance of housing companies can lead to a far more impersonal experience—everyone has heard or even experienced the horror stories of having your unit’s broken sink ignored for weeks, because you were low down on the repairman’s list of emergencies to fix. While of course the competition can mean that only the best in housing companies will thrive, it doesn’t mean much if the ‘best’ company still has low standards of customer service.
Finally, there is also the worry that the majority of housing being built is aimed so specifically at students that it limits the options of housing for families and young professionals. As three- to five-bedroom apartments, typically with one or two bathrooms, a shared kitchen and living areas are almost exclusively for the student demographic, over-saturation of this particular style of housing can limit and define the region’s housing market, and deter potential non-student residents due to lack of housing options for their needs.
So, what can we as tenants do to make the best of this situation? Primarily, ensure that our voices as both students and residents of the Waterloo are heard by housing companies and landlords alike, ensuring that our standards are upheld by voicing complaints and changes that need to be made. In a surplus of supply, it becomes the responsibility of the customers to ensure that the best housing services survive.
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