New Climate Study by Concordia University and Equiton Highlights the Resilience of Canadian Real Estate
BURLINGTON, ON, Feb. 27, 2025 /CNW/ - A new study from the John Molson School of Business at Concordia University, conducted in partnership with Equiton, sheds light on how climate change is shaping migration trends and, in turn, influencing Canada's real estate market.
Building on previous research into population growth and rental demand, The North Effect: Climate Resilience of the Canadian Real Estate Market leverages decades of climate data to explore how environmental factors — such as rising temperatures and extreme weather events — are influencing the migration patterns that help contribute to Canada's housing demand. The findings provide critical insights for institutional investors and industry leaders navigating the evolving landscape of Canadian real estate. The report was written by Dr. Erkan Yönder, Associate Professor of Real Estate and Finance, and his team at Concordia.
Key takeaways:
- Higher temperatures have had a moderating effect on cooler Canadian regions, potentially making them more attractive for climate migrants and investors alike.
- A 1% increase in the climate exposure of an immigrant's home country increases immigration from that country by around 0.5% across all immigration categories, playing a role in sustaining housing demand and supporting property values in Canada.
- As many Canadians have experienced, Canada is not immune to the effects of climate change. However, the number of Canadian postal codes affected by wildfires since 2019 is growing at a significantly slower pace compared to rising threats in U.S. locales.
- Data maps of temperature trends and abnormal heat days provide actionable insights into geographic diversification and mitigating climate risks for long-term investors.
- To preserve its climate advantage globally, Canada can direct policy and investment toward disaster-resistant infrastructure and long-term climate resilience initiatives.
"Climate change, demographic shifts and property values are interconnected, and this has become increasingly evident in Canada," says Aaron Pittman, Senior Vice-President and Head of Canadian Institutional Investments at Equiton, which partnered with Concordia. "Dr. Yönder's research uncovers a largely unexplored Canadian advantage in climate resilience, and one that investors and policymakers should not ignore."
Canadians are already feeling the effects of climate change as wildfires, flooding, and other extreme events cause billions in damage. Yet on a global scale, Canada remains less exposed to climate risks than many other countries.
"I call it the North Effect," says Dr. Erkan Yönder. "As rising temperatures make some regions unlivable, Canada's cooler climate is becoming more attractive by comparison. That means fewer severe climate impacts — and growing appeal as a migration destination."
This research was made possible through the Equiton Research Fund in Real Estate at the John Molson School of Business.
Find the full report at Equiton.com.
Dr. Erkan Yönder is an Associate Professor of Real Estate Finance and serves as the Chair of the Finance Department at John Molson School of Business, Concordia University. With a primary focus on real estate finance, Erkan's expertise lies in commercial real estate and sustainable real estate. Erkan's research has found its way into esteemed academic journals and have secured multiple grants from renowned institutions such as the National Pension Hub (NPH) and the European Public Real Estate Association (EPRA). Notably, his research earned him the Nick Tyrrell Real Estate Research Prize in the UK and the distinguished Best Published Article Award from Principles for Responsible Investment (PRI), a United Nations-supported initiative. Erkan has had the privilege of presenting his scholarly work at some of the world's leading universities, including MIT, Yale University, the University of California, Los Angeles (UCLA), and Cornell University. Erkan received his PhD degree in Finance and Real Estate at Maastricht University.
Aaron Pittman, SVP, Head of Canadian Institutional Investments at Equiton, is an Institutional Asset Management Executive with a history of applying a multidisciplinary approach to help global asset management firms realize optimal partnership potential with Institutional clients. Aaron brings extensive leadership experience with a focus on Institutional knowledge, acumen, and strategic and tactical initiatives which are applied to solidify an investment management company's reputation as a high quality, globally competitive entity. At Equiton, Aaron is responsible for capital raise activities and business development as it relates to the distribution of the firm's investment strategies to Institutions.
ABOUT EQUITON
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SOURCE Equiton Inc.
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