The Canada Mortgage and Housing Corporation released its numbers for the 2010 Spring Rental Market Survey, and the results show a definite increase in apartment vacancies thanks to increased homeownership.
The average rental apartment vacancy rate in major urban centers increased from 2.7 per cent to 2.9 per cent from April 2009 to April 2010.
“Rental construction and competition from the condominium market added upward pressure on vacancy rates and historically low mortgage rates attracted renter households towards homeownership over the last year,” said the CHMC.
Vancouver, Toronto, Calgary and Ottawa had the highest average monthly rent, while apartments in the province of Quebec has the lowest. Windsor had the highest vacancy rate, at 12.4 per cent, and Peterborough and Abbotsford each had average vacancy rates of 6.6 per cent. The lowest vacancy rates were in Quebec City with 0.4 per cent, closely followed by Regina and Winnipeg.
In fall of 2008, the national rental vacancy rate was only 2.2, increasing sharply to 2.8 in October of 2009. Windsor also had the highest vacancy rate then, with 13 per cent.
Back then, the increase in vacancy rate was attributed to a lower level of youth employment and demand for rental housing because of improved home affordability options. Now, the increase in vacancy rates shows an easier transition from renting to homeownership, likely due to the impending HST and mortgage rules as well as the record-low mortgage rates seen during the early spring.
