CMHC: Canada’s Purpose-Built Rental Vacancy Rate Increases

OTTAWA — Canada’s 35 larger centers saw the average vacancy rate in privately initiated purpose-built rental apartments increase to 3.3% in October 2015, from 2.8% in October 2014, according to final data from the fall 2015 Rental Market Survey.
“The rise in the national vacancy rate was due to lower net migration in regions most affected by low oil prices as well as an increase in the supply of purpose-built rental apartment units,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre.
Overall, the average rent for two-bedroom apartments in existing structures increased 2.9% between October 2014 and October 2015. In October 2015, the average rent for a two-bedroom apartment in new and existing structures was $960.
The Rental Market Survey also covers condominium apartments offered for rent in 16 large urban centers, including Vancouver, Toronto and Montreal. In this particular segment of the secondary rental market, rental condominium vacancy rates ranged from a high of 5.3% in Edmonton, to a low of 0.4% in Hamilton. Average monthly rents for two-bedroom condominium apartments were highest in Toronto ($1,754) and lowest in Québec ($1,065).

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