October 2014 Rental Market in Kitchener-Cambridge-Waterloo and Guelph

TORONTO, ONTARIO--(Marketwired - Dec. 16, 2014) - The rental apartment vacancy rate^[1] in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) was 2.3 per cent in October 2014, down from 2.9 per cent in October 2013 according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation. The rental apartment vacancy rate¹ in the Guelph CMA was 1.2 per cent in October 2014, down from 1.9 per cent in October 2013.

"Although supply increased, demand increased more and the vacancy rate declined in the Kitchener-Cambridge-Waterloo CMA. Movement out of the purpose-built rental market into homeownership and new student housing was more than offset by new renter households generated by echo boomers moving out of their parents' homes, students and immigrants moving into the area and seniors downsizing. In Guelph, the decline in the vacancy rate was due to demand increasing since supply was unchanged. The number of new renter households exceeded the number of people leaving the rental market for a variety of reasons, including to purchase a home," said Erica McLerie, CMHC's Senior Market Analyst for the Kitchener-Cambridge-Waterloo and Guelph CMAs.

On the basis of a sample of structures common to both the 2013 and 2014 surveys^[2], the average two-bedroom apartment rent increased by 1.6 per cent in the Kitchener-Cambridge-Waterloo CMA and by three per cent in the Guelph CMA.

The apartment vacancy rate declined for all zones in the Kitchener-Cambridge-Waterloo CMA, except for Zone 3 - Kitchener (West). In Guelph, the apartment vacancy rate declined in Zone 1 - Guelph West and Zone 2 - Guelph South, but increased in Zone 3 - Guelph East.

Rental Market data is also available in English and French at the following link: CMA Rental Market Report

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and advice to Canadian governments, consumers and the housing industry.

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^[1] The survey is based on privately-initiated rental apartment structures of three or more units.

^[2] Year-over-year comparisons of average rents can be slightly misleading because rents in newly built structures tend to be higher than in existing buildings. Excluding new structures and focusing on structures existing in both the October 2013 and October 2014 surveys provides a better indication of actual rent increases paid by tenants.

Additional data is available upon request.

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