January 15, 2009 — Moishe Alexander’s review on how the current world economy and Canadian economic down turn is affecting the Winnipeg Manitoba rental market
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
Tags: abbotsford, Alberta, Alexander, apartment, area, calgary, Canada, canadian funding corp, canadian funding corporation, CMHC, Corporation, demand, Fort Garry, housing, increase, Lord Selkirk, manitoba, Market, migration, Moishe, moishe alexander, Mortgage, period, Quebec, rate, rental, Report, S RENTAL, vacancy, vancouver, Windsor, winnipeg, year
Posted in Alberta, British Columbia, CMHC, Housing Market, Manitoba, Newfoundland, Ontario, Quebec, Rental Market, Uncategorized
