Friday, December 10, 2010


This is an interesting side effect to they type of immigration we have in major cities. Since most of the immigration is by sponsored relatives, or skilled workers who have either temporary or no employment, this seems to be feeding the rental market instead of the ownership market which requires higher capital and investment in a more permanent home.

Renters face more competition for units than a year ago, vacancy rates fall Markets Headline News Canadian Business Online

From The Canadian Press, December 09, 2010 - 12:11 a.m.

Renters face more competition for units than a year ago, vacancy rates fall

By The Canadian Press

TORONTO - It was harder for renters to find a place to live this fall than it was a year earlier as vacancy rates fell across the country in the face of increased demand spurred by immigration and an improved economy, Canada Mortgage and Housing Corp. said Thursday.

The average rental apartment vacancy rate in 35 major Canadian centres fell slightly to 2.6 per cent from 2.8 per cent in October 2009, the federal agency found in its Fall Rental Market Survey.

“The economic recovery that has taken place over the past year has boosted demand for both rental and ownership housing,” said Bob Dugan, chief economist at CMHC.

“High levels of immigration have supported demand for rental housing, thus pushing the vacancy rate lower. In addition, improving economic conditions have likely boosted household formation which, in turn, has added to the demand for rental housing."

It was hardest to find a rental unit in Winnipeg, where the vacancy rate was 0.8 per cent, followed by Regina, Sask., Kingston, Ont., and Quebec City, at one per cent each.

Vacancy rates were highest in Windsor, Ont., Abbotsford, B.C., Saint John, N.B., and London, Ont..

Monthly rent amounts for a two-bedroom unit rose about 2.4 per cent year over year to $860 from an average $836 last October.

Vancouver, at $1,195, Toronto, at $1,123, and Calgary, at 1,069, were the most expensive cities to rent in.

Average rents were lowest in three Quebec cities,Trois-Rivi�res ($533), Saguenay ($535), and Sherbrooke ($566).

The rental apartment availability rate in Canada’s 35 major centres was 3.8 per cent in October 2010, down from 4.1 per cent in October 2009.

CMHC’s Rental Market Survey is conducted twice a year in April and October, to provide vacancy, availability and rent information on the private sector rental market in all centres with populations of 10,000 or more across Canada.

No comments: