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National vacancy rate falls

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guest | 13 Dec 2011, 05:43 PM Agree 0

The average rental apartment vacancy rate in Canada's 35 major centres decreased slightly to 2.2 per cent in October 2011, from 2.6 per cent in October 2010, according to CMHC’s fall Rental Market Survey.
 
“Modestly higher levels of employment among persons aged 15 to 24 likely increased household formation among young adults, thereby increasing rental housing demand. This, combined with the supply of newly constructed rental apartments moving slightly lower, pushed Canada’s vacancy rate downward, said Mathieu Laberge, deputy chief economist at CMHC’s Market Analysis Centre. “Demand for rental condominium apartments remained strong, with the vacancy rate for such units falling in most of Canada’s largest urban centres, including Toronto, Montreal and Vancouver.”
The lowest vacancy rates were found in Regina (0.6 per cent), Winnipeg, Kingston and Guelph (1.1 per cent), and St. John’s (1.3 per cent). At the provincial level, Manitoba had the lowest vacancy rate at 1.0 per cent. Newfoundland and Labrador (1.3 per cent) and Saskatchewan (1.9 per cent) were the other provinces with vacancy rates below two per cent.
The highest vacancy rates were found in Windsor (8.1 per cent), Abbotsford (6.7 per cent) and Saint John (5.9 per cent). On a provincial basis, the highest vacancy rate was in New Brunswick (4.8 per cent).
The average rent for a two-bedroom new or existing apartment in Canada increased by $23 year-over-year in October to $883. The highest average monthly rents were in Vancouver ($1,237), Toronto ($1,149), Ottawa ($1,086), Calgary ($1,084), Victoria ($1,045), Edmonton ($1,034) and Barrie ($1,001). Provincially, the highest average monthly rents were in British Columbia ($1,050), Alberta ($1,044) and Ontario ($1,002).
The lowest average monthly rents for two-bedroom apartments were in Trois-Rivières ($547), Saguenay ($557) and Sherbrooke ($577). On a provincial basis, the lowest monthly rents were: Québec ($684), New Brunswick ($687) and Newfoundland and Labrador ($701).
  • Canadian Mortgages Inc | 13 Dec 2011, 09:45 PM Agree 0
    Tying the lower vacancy level to the employment rate in general makes sense. Especially true when comparing the level of employment of 15-24 year olds and rental vacancies. Usually, a young worker's first goal is to move into their own place ~renting is the quickest way to achieve this freedom.

    The plus side to this? It shows the Canadian economy is more stabile than most, and with the youth finding employment at an early age, the time it will take for them to be in a financial position to purchase their first home is shorter.

    Great news for the real estate market on all levels.
  • Canadian Mortgages Inc | 13 Dec 2011, 10:45 PM Agree 0
    Tying the lower vacancy level to the employment rate in general makes sense. Especially true when comparing the level of employment of 15-24 year olds and rental vacancies. Usually, a young worker's first goal is to move into their own place ~renting is the quickest way to achieve this freedom.

    The plus side to this? It shows the Canadian economy is more stabile than most, and with the youth finding employment at an early age, the time it will take for them to be in a financial position to purchase their first home is shorter.

    Great news for the real estate market on all levels.
  • Prosperity Real Estate Investments | 14 Dec 2011, 07:32 PM Agree 0
    Very informative article and agree with Canadian Mortgages Inc.'s comments above about tying it to employment rates. We're noticing the trend in Edmonton with vacancies and unemployment dropping together.

    The really interesting numbers we are seeing is with lower unemployment rate there's a shift of in - migration. We've been filling several of our properties from people living in Eastern Canada.

    Thanks for sharing and keep up the good work.
  • Prosperity Real Estate Investments | 14 Dec 2011, 08:32 PM Agree 0
    Very informative article and agree with Canadian Mortgages Inc.'s comments above about tying it to employment rates. We're noticing the trend in Edmonton with vacancies and unemployment dropping together.

    The really interesting numbers we are seeing is with lower unemployment rate there's a shift of in - migration. We've been filling several of our properties from people living in Eastern Canada.

    Thanks for sharing and keep up the good work.
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