CityFlats Taps KEILTY to Manage New 410-Unit Kingston Rental Community

KINGSTON, ON – January 19, 2026 – As Kingston continues to grapple with intense housing demand, developer CityFlats Asset Management has announced a strategic partnership with KEILTY Realty Management Inc. to operate The Grove, a significant new 410-unit rental community currently under development in the city's burgeoning west end.

The appointment designates KEILTY as the exclusive property manager for the purpose-built rental project, a move intended to establish a high standard for professional housing operations in a market characterized by low vacancy and rising costs. The first phase of the ambitious five-building development is slated to welcome residents in early 2027.

Kingston's Housing Crunch: A Market Under Pressure

The announcement arrives at a critical juncture for Kingston's rental market. The city is navigating a period of sustained population growth and demographic shifts that have placed immense pressure on its housing supply. According to recent data, Kingston’s rental market vacancy rate stood at 2.4% in 2025. While this is an improvement from the record low of 0.8% seen in October 2023—the lowest among all Ontario Census Metropolitan Areas at the time—it remains below the 3% threshold generally considered indicative of a healthy, balanced market.

This tight supply has inevitably driven up costs for renters. As of early 2026, the median rent for all property types in Kingston has climbed to $2,200, a figure 16% higher than the national average. The cost of a two-bedroom apartment saw a particularly sharp year-over-year increase of 28.9%, pushing average rents for such units to around $2,500. This trend reflects the intense competition for available units.

Driving this demand is a confluence of factors. The city's population expanded by 7% between 2016 and 2021, and its workforce continues to grow. Furthermore, a notable trend towards smaller, one- and two-person households, which accounted for 79% of household growth in the same period, has increased the total number of housing units required. In response, the City of Kingston has made housing a central pillar of its strategic plan, setting an ambitious target of facilitating 8,000 new homes by 2031. Developments like The Grove are a direct response to this call, representing a significant injection of new, purpose-built supply into a strained market.

A Blueprint for a Modern Rental Community

The partnership between CityFlats and KEILTY represents a strategic alignment of development expertise and operational prowess. CityFlats, an Ontario-based firm, is known for its vertically integrated platform that covers the entire lifecycle of a development project, from land acquisition and construction through to long-term asset management. The company has a substantial footprint in the Kingston market, with its portfolio including a 340,000 square foot geothermal multi-residential building and other purpose-built rental projects totaling a combined 370,000 square feet. This deep local experience underscores their long-term commitment to the region.

KEILTY Realty Management was selected following a competitive review, a decision based on its 23-year track record in delivering institutional-quality property management across Ontario. The firm is tasked with overseeing all day-to-day operations at The Grove. This comprehensive mandate includes managing leasing and resident relations, coordinating maintenance and building systems, providing transparent financial reporting, and contributing to ongoing asset planning in close collaboration with CityFlats.

The goal is to ensure predictable performance and a professionally managed resident experience from the initial lease-up phase through to long-term stabilization. This approach is designed to protect the asset's value for CityFlats while delivering a consistent and reliable living environment for tenants.

"We are proud to be entrusted with the management of The Grove," said Brandon Ackerman, Vice President of Rental Management at KEILTY. "CityFlats has developed a strong blueprint for this community. Our role is to execute reliably, protect asset value, and deliver a consistent living experience that supports long-term success."

Transforming the West End: The Grove's Local Impact

Located within the Centennial lands, The Grove is poised to become a cornerstone of Kingston's rapidly expanding west end. The project is planned as a five-phase development that will ultimately deliver 410 high-quality rental apartments. The first building, named The Cedar, is scheduled for initial occupancy in February 2027, marking the first tangible step in bringing this large-scale community to life.

The development site itself holds even greater potential. It has recently been rezoned to support up to five residential apartment buildings, which could accommodate a total of 597 units upon full build-out. This long-range vision signals a substantial and sustained investment in the area's growth.

The Grove is not being built in a vacuum. It joins a wave of new construction across Kingston as developers race to meet housing demand. Other notable projects include a 92-unit building on Princess Street and several modern complexes in Midtown, which is experiencing its own residential boom. This city-wide construction activity highlights a broader economic and demographic shift, with The Grove positioned as a key contributor to the west end's transformation. By adding hundreds of new households, the development is expected to stimulate local businesses and increase the need for community services and infrastructure, catalyzing further economic activity in the surrounding neighborhood.

Setting a New Standard for Rental Living

More than just adding units to the market, the collaboration behind The Grove aims to establish a new benchmark for purpose-built rental housing in Kingston. The term "purpose-built" signifies that the buildings are designed and constructed specifically for long-term rental, often incorporating modern amenities, efficient layouts, and professional on-site services that are less common in the fragmented market of converted houses or individually owned condo rentals.

The partnership model—pairing a specialized developer with an experienced property management firm—is central to this vision. While CityFlats focuses on the physical creation and long-term financial strategy of the asset, KEILTY is dedicated to the operational execution and resident experience. This division of expertise is intended to create a seamless living environment, where tenant needs are addressed professionally and building operations are maintained to a high standard.

This model contrasts with other segments of the rental market, where tenants may deal with individual landlords or large, sometimes impersonal, real estate investment trusts. By focusing on creating a "professionally managed resident experience," the developers of The Grove are betting that quality of life and reliable service are powerful draws for renters in a competitive landscape. As the first residents prepare to move into The Cedar in just over a year, the project will serve as a prominent case study in how strategic partnerships and a focus on operational excellence can address housing shortages while elevating the standard of rental living for an entire community.