Rental Vacancy Rates Increase in Canada
By Lucas on Dec 13, 2013
Canada Mortgage and Housing Corporation (CMHC) released its fall Rental Market Survey recently, which reports increases in Canada’s rental vacancy. Out of 35 major urban centres in Canada, the vacancy rate increased to 2.7% in October 2013, a tiny increase from October 2012 (2.6%).
“An increase in the supply of purpose-built rental apartments was partially offset by increasing rental housing demand across the country. Demand for rental housing was supported by both higher levels of full-time employment in the 15 to 24 age group, and a rise in net migration. Meanwhile, demand for rental condominium apartments remained strong,” said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre.
The lowest vacancy rates in the primary apartment rental market were found in Calgary (1%), Edmonton (1.4%), and Toronto (1.6%). The highest vacancy rates were found in Saint John (11.4%), Moncton (9.1%), and Charlottetown (7.9%).
The average monthly rent for a two-bedroom apartment in existing structures increased 2.5% compared to October 2012. In new and existing structures, the average monthly rent for a two-bedroom apartment was $920.
The highest average monthly rents were found in Vancouver ($1,281), Calgary ($1,224), and Toronto ($1,213). The lowest average rents were found in Trois-Rivieres ($555), Saguenay ($571), and Sherbrooke ($591).
CMHC’s Rental Market Survey also collected data about condominium apartments. Out of 11 large urban centres in Canada, Toronto had the highest average monthly rent for a two-bedroom at $1,752. The lowest rent was found in Quebec City ($980).
The highest average monthly rent for a condominium apartment was higher than any average for an apartment in the primary rental market. Just goes to show that even renters are deciding that a central location is more important than the amount of living space. It’s not really surprising because the majority of condo renters are probably young singles and couples. Families of three or more are either at a stage in their lives where they are ready to buy, or they are renting larger apartments or houses outside of downtown cores.
