Average Rental Vacancy Rates Rise to 1.7 Per Cent

OTTAWA, Ontario, November 26, 2002 — The average rental apartment vacancy rate in Canada's 28 metropolitan areas¹ rose to 1.7% in October this year from 1.1% in October 2001, according to the Rental Market Survey released by Canada Mortgage and Housing Corporation (CMHC) today. This is the first increase in the vacancy rate since 1992.

"Many factors contributed to the increased vacancy rates over the past year", said Michel Laurence, Chief Economist at CMHC's Market Analysis Centre "Foremost among them are low mortgage rates, which have reduced the carrying cost of home ownership. This encouraged many people to make the switch from renting to owning, causing vacancy rates to go up in many metropolitan areas."

Seventeen of Canada's 28 metropolitan areas have higher vacancy rates than one year ago. Highest recorded vacancy rates are in, Saint John (NB), Sudbury, Chicoutimi-Jonquière and Thunder Bay. Lowest vacancy rates recorded are in Québec City, Gatineau, Montréal and Kingston. All had rates under one per cent.

Vacancy rates were higher in eight of Ontario's 11 metropolitan areas. Of the eight metropolitan areas, with higher rates, Toronto, Kitchener, Ottawa, Oshawa and Windsor increased by one percentage point or more.

In Quebec, two of six metropolitan areas had higher vacancy rates than 2001. The greatest relative increase occurred in Chicoutimi-Jonquière (4.9 from 4.4%), while Montréal's vacancy rate rose to 0.7% from 0.6%. Vacancy rates in Gatineau, Québec City, Sherbrooke and Trois-Rivières declined.

In the Prairies and British Columbia, vacancy rates went up in five of eight metropolitan areas, Calgary, Edmonton, Saskatoon, Vancouver and Victoria. Abbotsford, Regina and Winnipeg experienced declines.

In Atlantic Canada, the vacancy rate in Saint John (NB) rose to 6.3%, the highest rate of all Canadian metropolitan areas. Rates increased slightly in St. John's (NFLD) and fell slightly in Halifax.

CMHC's annual rent survey shows that average rents for two-bedroom apartments increased in all metropolitan areas except, Thunder Bay where it remained unchanged. The greatest increase occurred in Edmonton at 8.4%. Halifax posted the second-largest increase at 4.6%. Average rents in Gatineau, Sudbury, Montréal and Windsor also rose more than 4%.

The highest average monthly rents for two-bedroom apartments remained in Toronto ($1,047), Vancouver ($954) and Ottawa ($930). The lowest average rents were in Trois-Rivières ($431) and Chicoutimi-Jonquière ($440).

CMHC's Rental Market Survey is conducted yearly in October, to provide vacancy rate and rent information on privately initiated apartment structures containing at least three rental units.

Michel Laurence
CMHC
(613) 748-2737
mlaurenc@cmhc-schl.gc.ca

¹ census metropolitan areas as defined by Statistics Canada

Note: Tables of vacancy rates and rents are attached.

For local rental market information, please contact your local CMHC branch.

CMHC's Rental Market Survey is conducted yearly in October, to provide vacancy rate and rent information on privately initiated apartment structures containing at least three rental units.

Vacancy Rates in Apartment Structures of Three Units and Over Privately Initiated, in Metropolitan Areas

(1)Weighted average of Metropolitan Areas Surveyed.

* Data prior to 2002 is based on the census agglomeration definition, 2002 data is based on the census metropolitan area definition.

* Data prior to 2002 is based on the census agglomeration definition, 2002 data is based on the census metropolitan area definition.