The average rental apartment vacancy rate in Canada’s 35 major centres increased to 2.8 per cent in October 2009 from 2.2 per cent in October 2008. The centres with the highest vacancy rates in 2009 were Windsor (13.0 per cent), Abbotsford (6.1 per cent), Peterborough (6.0 per cent), Calgary (5.3 per cent), and London (5.0 per cent). On the other hand, the major urban centres with the lowest vacancy rates were Regina (0.6 per cent), Québec (0.6 per cent), St. John’s (0.9 per cent), Winnipeg (1.1 per cent), Kingston (1.3 per cent), and Victoria (1.4 per cent).

Demand for rental housing in Canada decreased due to slower growth in youth employment and improved affordability of homeownership options. Rental construction and competition from the condominium market also added upward pressure on vacancy rates.

The highest average monthly rents for two-bedroom apartments in new and existing structures were in Vancouver ($1,169), Calgary ($1,099), Toronto ($1,096), and Ottawa ($1,028). The lowest average monthly rents for two-bedroom apartments in new and existing structures were in Saguenay ($518), Trois-Rivières ($520), and Sherbrooke ($553).

Year-over-year comparison of rents in new and existing structures can be slightly misleading because rents in newly-built structures tend to be higher than in existing buildings. However, by excluding new structures, we can get a better indication of actual rent increases paid by most tenants. The average rent for two-bedroom apartments in existing structures increased in all major centres. The largest rent increases in existing structures were recorded in Regina (10.2 per cent), Saskatoon (8.3 per cent),Victoria (5.0 per cent), and St. John’s (4.9 per cent). Overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased by 2.3 per cent between October 2008 and October 2009.

CMHC’s October 2009 Rental Market Survey also covers condominium apartments offered for rent in Calgary, Edmonton, Montréal, Ottawa, Québec, Regina, Saskatoon, Toronto,Vancouver, and Victoria. In 2009, vacancy rates for rental condominium apartments were below two per cent in seven of the 10 centres surveyed. Rental condominium vacancy rates were the lowest in Toronto, Saskatoon, and Ottawa. However, Regina and Edmonton registered the highest vacancy rates for condominium apartments at 3.0 per cent and 3.1 per cent in 2009, respectively.

The survey showed that vacancy rates for rental condominium apartments in 2009 were lower than vacancy rates in the conventional rental market in Ottawa, Saskatoon,Vancouver, Toronto, Edmonton, and Calgary. The highest average monthly rents for two- bedroom condominium apartments were in Toronto ($1,487),Vancouver ($1,448), Calgary ($1,310), and Victoria ($1,223). All surveyed centres posted average monthly rents for two- bedroom condominium apartments that were higher than average monthly rents for two-bedroom private apartments in the conventional rental market in 2009.

London, Ontario - Credit abdallahh, Flickr

The London Ontario rental vacancy rate has moved up to 3.9% in 2008 and Canada Mortgage and Housing Corporation is predicting that the vacancy rate will rise to 4.2% in 2009. For a city the size of London Ontario, this means that a tenants market for rental units has returned to the London Ontario area.

It is good times now for tenants in London Ontario to find good rental accommodations at reasonable rents, as line-ups at landlord’s offices is over.

SLIGHT COOLING OFF OF THE LONDON RENTAL MARKET

The London rental market has cooled off slightly and the vacancy rose to 3.9% in 2008 from 3.6% in 2007. The average rent on rental units increased by 1.5% in 2008 form the 2007 rental rate figures, which was slower than the 2.6% increase in 2007, from the 2006 rental period.

The rental vacancy rate increased in the surrounding communities i.e. St. Thomas and Strathroy substantially, which affected the overall vacancy rates. Canada Mortgage and Housing Corporation is predicting that the overall vacancy rate in London will increase to 4.0% for the period ending 2009.

SEVERAL REASONS FOR CONTINUED INCREASE IN VACANCY RATE

The Canada Mortgage and Housing Corporation report states that many factors have combined to increase the vacancy rate in London. Some of those factors include a surprising decrease in university students and huge unemployment increases. As well as the substantial increase in the creation of rental units, which increased to 836 units in 2008, versus 586 in 2007.

CONTINUED MODERATE RENT INCREASES

The Canada Mortgage and Housing Corporation report states that last fall in London Ontario, a one-bedroom apartment that used to rent for $554.00, plus utilities is now renting for $565.00, plus utilities, compared to the same period last year. A two-bedroom unit that rented last year for $625.00, plus utilities, is now renting for $645.00, which is approximately a 1.5% increase.

Government sources say that with these moderate increases, welfare recipients are not hard pressed to rent in London Ontario. Increased vacancy rates in this area of the province have caused rents to increase moderately for the same period last year. However, rent increases in purpose-built apartment rent units that were new, were more significant in most areas of the City of London Ontario.

RENTERS PREFER LARGER AND NEWER BUILDINGS

Canada Mortgage and Housing Corporation report states that apartment buildings with excess of 100 units or more have the lowest average vacancy rate in London Ontario at 2.9%. Rental apartments constructed after 2000 are becoming popular and preferred by the London area tenants, specifically in the downtown core.

LONDON’S RENTAL AFFORDABILITY INDICATOR

Canada Mortgage and Housing Corporation affordability indicator will decline to 119 by year-end 2008, which indicates that the value of 100 suggests that 40% of the median income of rental households is necessary to rent a two bedroom apartment, well above the Canadian average.

NATIONAL VACANCY RATE DECREASED IN OCTOBER 2008

Canada Mortgage and Housing Corporation reports that the vacancy rate in Canada’s 34 major centers decreased to 2.2% from 2.6% in October of 2008, for the same period the year before. Vacancy rates were as high as 14.6% in Windsor to a low of 0.3% in Vancouver and Abbotsford BC.

Canada Mortgage and Housing Corporation reports that the highest average monthly rent for a two bedroom apartment is in Calgary, Alberta with a monthly rental cost of $1,148.00 to a low of $543.00 in Sherbrooke, Quebec.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/64403/64403_2008_A01.pdf

Vancouver, BC - Credits JMV, Flickr

The Vancouver and Abbotsford area of British Columbia starts a serious downturn in housing starts and is returning to the historical consistent levels of years gone by. The only bright spot will be the apartment condominium construction starts which will increase substantially in 2009. With declining existing home sales and rising home listings, you can expect a 20%-30% reduction in the average price of re-sale homes in 2009.

NEW HOME CONSTRUCTION HIGH BUT MODERATING

Vancouver New home starts were down 4% in 2008 for the same period in 2007 and there will be a further 18% drop in new home construction in 2009, with significant impact on this construction from the single detached home starts which will decline at a faster pace.

The majority of home builders will not be increasing their home inventories, but will be putting all projects on hold until the demand improves, especially in the higher priced ranged homes.

VANCOUVER RESALE MARKETS FAVOR BUYERS

Sales in metro Vancouver, from MLS, have been moving lower since the beginning of 2008. There are several contributing factors. The significant one is the high cost of home ownership with little demand. Not to mention, the first time buyers virtually evaporated from the Vancouver area, but used to be a good market to invest in for multi-residential investments, is now a less appealing option for investors.

Clearly the problem is supply and demand, which historically affects the growth and the value of home purchases.

HOUSING DEMAND MODERATES

Although there has been economic growth at moderate levels, over the same period last year, a surprising prediction by Canada Mortgage and Housing Corporation is that employment will be strong and there will be substantial population growth in Vancouver and surrounding areas in 2009.

Canada Mortgage and Housing Corporation predicts that there will be continued growth in 2009 in major commercial projects with over $30 billion worth of projects that are commencing in 2009 for the main land/southwest development region of Vancouver.

MORTGAGE RATES

Canada Mortgage and Housing Corporation predict that interest rates will decline by a further 25-50 basis points from their current levels in 2009. However, due to the cost of borrowing to the Canadian banks from the markets, the mortgage interest rate will marginally increase in the latter half of 2009, but not significantly enough to negatively affect the housing market in Vancouver and surrounding areas.

ABBOTSFORD: MODERATION IN THE ECONOMY WILL CONTINUE

Due to the moderating job growth in Abbotsford, the housing demand is decreasing rapidly, especially from first time buyers. Although the business climate remains strong in Abbottsford, further consumer and business bankruptcies are predicted to increase slightly. Total migration in Abbottsford is expected to be 2000 plus in 2009.

BUYERS CONDITIONS TO REMAIN IN THE ABOTTSFORD

According to Canada Mortgage and Housing Corporation, resales in the Abbottsford area have declined in comparison to the high levels of last year. Quarter after quarter, sales figures are shrinking and the average MLS sale price will be at least 30% less than the year before.

Currently the average sale price of a single detached house in Abbottsford City proper is $450,000.00.

You can find the entire report in PDF format through the following link:

http://www.cmhc-schl.gc.ca/odpub/esub/64363/64363_2008_B02.pdf

Sudbury, Ontario - Credit Habi, Flickr

The Sudbury Ontario rental market has one of the lowest apartment vacancy rate at 0.7% in the country. In fact, the rental town house vacancy rate dropped substantially to 0.2% for 2008. These two figures together leave a net vacancy rate of 0.6%.

It is desperate times for tenants in Sudbury Ontario to find any proper rental accommodations, as there are line-ups at landlord’s offices.

VACANCIES EDGE UP , BUT SUDBURY MARKET STILL TIGHT

The Canada Mortgage and Housing Corporation reported that Sudbury Ontario is experiencing an increase need for rental housing in all sectors. Much of this is contributing to the demand by the significant post secondary population in the area along with a strong local labor market, especially in mining. These statements and figures come from the rental market report issued in 2008 by Canada Mortgage and Housing Corporation. More than 50,000 people (net migration) moved to Sudbury Ontario last year from other provinces and countries putting additional stress on an already stressed out rental housing market.

VERY LITTLE NEW SUPPLY OF PURPOSE-BUILT RENTAL UNITS OR ANY HIGH RISE RENTAL UNITS

According to Canada Mortgage and Housing Corporation, despite the extreme demand for rental housing in Sudbury Ontario, only 16 purpose-built rental starts occurred in Sudbury and surrounding areas for the first 10 months of 2008. This is caused a panic for tenants and an extreme appreciation in value for single detached homes in Sudbury Ontario.

SEVERAL REASONS FOR CONTINUED LOW VACANCY RATE

The Canada Mortgage and Housing Corporation report states that many factors have combined to keep greater Sudbury vacancies low. Even though there has been falling commodity prices for iron or the mining sector, it has kept demand solid for rental accommodations. Migration continues into the region, attracted by the jobs, post secondary school opportunities, and retirement living. Sudbury boasts the science north attraction and all main hospitals for Northern Ontario that are fully operational are situated in Sudbury.

CONTINUES STRONG RENT INCREASES

The Canada Mortgage and Housing Corporation report states that last fall in Sudbury Ontario, a one-bedroom apartment that used to rent for $782.00, plus utilities is now renting for $850.00, plus utilities, compared to the same period last year. A two-bedroom unit that rented last year for $950.00, plus utilities, is now renting for $1,050.00, which is approximately a 20% increase.

Government sources say that with this increase cost, welfare recipients are hard pressed to rent anything in Sudbury Ontario. Tight vacancy rates in this area of the province have caused rents to increase substantially for the same period last year. However, rent increases in purpose-built apartment rent units were moderate in most areas of the city including Chelmsford and Minnow Lake.

SUDBURY VACANCIES RESUME DOWNWARD DECENT

Canada Mortgage and Housing Corporation is projecting that vacancy rates in Sudbury Ontario and surrounding areas, will remain the lowest in the country in 2009. Mainly due to non-construction of rental units and a significant increase in migration. In fact, Canada Mortgage and Housing Corporation is predicting that the vacancy rate in Sudbury Ontario and surrounding areas for the period ending 2009, will be 0.07%, which is a phenomenal vacancy rate.

SUDBURY’S RENTAL AFFORDABILITY INDICATOR

Canada Mortgage and Housing Corporation affordability indicator will decline to 74 by year-end 2008, which indicates that the value of 100 suggests that 30% of the median income of rental households is necessary to rent a two bedroom apartment, well above the Canadian average.

NATIONAL VACANCY RATE DECREASED IN OCTOBER 2008

Canada Mortgage and Housing Corporation reports that the vacancy rate in Canada’s 34 major centers decreased to 2.2% from 2.6% in October of 2008, for the same period the year before. Vacancy rates were as high as 14.6% in Windsor to a low of 0.3% in Vancouver and Abbotsford BC.

Canada Mortgage and Housing Corporation reports that the highest average monthly rent for a two bedroom apartment is in Calgary, Alberta with a monthly rental cost of $1,148.00 to a low of $543.00 in Sherbrooke, Quebec.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/65780/65780_2008_A01.pdf

Winnipeg, Manitoba - Credit Daryl Mitchell, Flickr

The Winnipeg Manitoba rental market has one of the lowest apartment vacancy rates at 1.0% in the country. In fact, the rental town house vacancy rate dropped substantially from 2.6% to 2.2% for 2008. These two figures together leave a net vacancy rate of 1.0%.

Moishe Alexander states that it is tough times for tenants in Winnipeg Manitoba to find any proper rental accommodations, as there are line-ups at the Property Managements offices.

AVAILABILITY RATE DECLINES ALONGSIDE VACANCY RATE

The Canada Mortgage and Housing Corporation reported that Winnipeg Manitoba is experiencing an availability increase for rental housing in all sectors. Much of this is contributing to the demand by the significant post secondary population in the area along with a strong local labor market, especially high-tech jobs. These statements and figures come from the rental market report issued in 2008 by Canada Mortgage and Housing Corporation. More than 12,000 people (net migration) moved to Winnipeg Manitoba last year from other provinces and countries putting additional stress on an already stressed out rental housing market.

VERY LITTLE NEW SUPPLY OF PURPOSE-BUILT RENTAL UNITS OR ANY HIGH RISE RENTAL UNITS IS AFFECTING THE VACANCY RATE

According to Canada Mortgage and Housing Corporation, despite the extreme demand for rental housing in Winnipeg Manitoba, only 68 purpose-built rental starts occurred in Winnipeg Manitoba and surrounding areas for the first 10 months of 2008. This has caused a panic for tenants and an extreme appreciation in value for single detached homes in Winnipeg Manitoba.

SEVERAL REASONS FOR CONTINUED LOW VACANCY RATE

The Canada Mortgage and Housing Corporation report states that many factors have combined to keep Winnipeg Manitoba vacancies low. Even though there has been falling commodity prices for iron or the mining sector, it has kept demand solid for rental accommodations. Migration continues into the region, attracted by the jobs, post secondary school opportunities, and retirement living. Winnipeg Manitoba boasts substantial investments in the high-tech consumer industry and all main hospitals for Manitoba that are fully operational, are situated in Winnipeg.

RENTS CONTINUE TO INCREASE

The Canada Mortgage and Housing Corporation report states that last fall in Winnipeg Manitoba, a one-bedroom apartment that used to rent for $740.00, plus utilities, is now renting for $769.00, plus utilities, compared to the same period last year. A two-bedroom unit that rented last year for $475.00, plus utilities, is now renting for $745.00, which is approximately a 45% increase.

Government sources say that with this increase cost, welfare recipients are starting to be hard pressed to rent anything in Winnipeg or surrounding areas, except in the Lord Selkirk area. Tight vacancy rates in this area of the province have caused rents to increase substantially for the same period last year. However, rent increases in purpose-built apartment rent units were moderate in most areas of the city including Lord Selkirk and Fort Garry.

VACANCY RATE DECREASES IN ROW RENTALS

Canada Mortgage and Housing Corporation is projecting that vacancy rates in Winnipeg Manitoba and surrounding areas in row rentals will remain the lowest in the country in 2009. Mainly due to non-construction of rental units and a significant increase in migration. In fact, Canada Mortgage and Housing Corporation is predicting that the vacancy rate in Winnipeg Manitoba and surrounding areas will decrease from 2.6% to 1.5% for the period ending 2009.

WINNIPEG’S RENTAL AFFORDABILITY INDICATOR

Canada Mortgage and Housing Corporation affordability indicator will decline to 105 by year-end 2008, which indicates that the value of 100 suggests that 40% of the median income of rental households is necessary to rent a two bedroom apartment, well above the Canadian average.

NATIONAL VACANCY RATE DECREASED IN OCTOBER 2008

Canada Mortgage and Housing Corporation reports that the vacancy rate in Canada’s 34 major centers decreased to 2.2% from 2.6% in October of 2008, for the same period the year before. Vacancy rates were as high as 14.6% in Windsor to a low of 0.3% in Vancouver and Abbotsford BC.

Canada Mortgage and Housing Corporation reports that the highest average monthly rent for a two bedroom apartment is in Calgary, Alberta with a monthly rental cost of $1,148.00 to a low of $543.00 in Sherbrooke, Quebec.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/64479/64479_2008_A01.pdf

Vancouver BC - Credits D'Arcy Norman, Flickr

The Vancouver and Abbotsford BC rental market has one of the lowest apartment vacancy rate at 0.5% in the country. In fact, the rental town house vacancy rate dropped substantially to 0.3% for 2008. These two figures together leave a net vacancy rate of 0.5%.

It is desperate times for tenants in the cities of Vancouver and Abbotsford, British Columbia.

RENTAL DEMAND HOLDS STRONG FOR VANCOUVER AND ABBOTSFORD

The Canada Mortgage and Housing Corporation reported that the Vancouver and Abbotsford area of BC is experiencing an increase need for rental housing in all sectors. Much of this is contributing to the demand by the significant post secondary population in the area along with a strong local labor market. These statements and figures come from the rental market report issued in 2008 by Canada Mortgage and Housing Corporation. More than 30,000 people (net migration) moved to Vancouver last year from other provinces and countries putting additional stress on an already stressed out rental housing market.

VERY LITTLE NEW SUPPLY OF PURPOSE-BUILT RENTAL UNITS

According to Canada Mortgage and Housing Corporation, despite the extreme demand for rental housing in Vancouver and Abbotsford BC, only 162 purpose-built rental starts occurred in Vancouver and 32 in Abbotsford for the first 10 months of 2008. This is caused a panic for tenants and an extreme appreciation of condominium prices in Vancouver and Abbotsford BC.

SECONDARY RENTAL MARKET BECOMING INCREASINGLY IMPORTANT

The Canada Mortgage and Housing Corporation report states that since there is limited stock of purposed-built rental units in Vancouver and Abbotsford BC, a strong demand has occurred for rental units to be created by homeowners, which is called the “secondary rental market”. Pressure is being excreted on the local municipality cities to relax their zoning and building codes to permit additional secondary rental units in private homes.

RENTS RISE AT STEADY PACE

The Canada Mortgage and Housing Corporation report states that last fall in Vancouver and Abbotsford BC a one bedroom apartment that used to rent for $782.00 is now renting for $986.00 compared to the same period last year. A two bedroom units that rented last year for $761.00 are now renting for $964.00, which is approximately 25% increases.

Government sources say that with this increase cost, welfare recipients are hard pressed to rent anything in Vancouver and Abbotsford BC. Tight vacancy rates in this area of the province have caused rents to increase substantially for the same period last year. However, rent increases in purpose-built apartment rent units were moderate in most areas of the city including the City of Vancouver, New Westminister, Langley, and Maple Ridge.

RENTAL MARKET FORECAST

Canada Mortgage and Housing Corporation is projecting that vacancy rates in Vancouver and Abbotsford BC will remain the lowest in the country in 2009. Mainly due to non-construction of rental units and a significant increase in migration. In fact, Canada Mortgage and Housing Corporation is predicting that the vacancy rate in Vancouver and Abbotsford BC for the period ending 2009 will be 0.5%, which is an astonishing low vacancy rate.

RENTAL AFFORDABILITY INDICATOR

Canada Mortgage and Housing Corporation affordability indicator indicates that the value of 100 suggests that 30% of the median income of rental households is necessary to rent a two bedroom apartment, well above the Canadian average.

NATIONAL VACANCY RATE DECREASED IN OCTOBER 2008

Canada Mortgage and Housing Corporation reports that the vacancy rate in Canada’s 34 major centers decreased to 2.2% from 2.6% in October of 2008, for the same period the year before. Vacancy rates were as high as 14.6% in Windsor to a low of 0.3% in Vancouver and Abbotsford BC.

Canada Mortgage and Housing Corporation reports that the highest average monthly rent for a two bedroom apartment is in Calgary, Alberta with a monthly rental cost of $1,148.00 to a low of $543.00 in Sherbrooke, Quebec.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2008_A01.pdf