Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

December 16, 2014 08:15 ET

October 2014 Rental Market in Regina

REGINA, SASKATCHEWAN--(Marketwired - Dec. 16, 2014) - The rental apartment vacancy rate(1) in the Regina Census Metropolitan Area (CMA) was three per cent in October 2014, up from 1.8 per cent in October 2013, according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation (CMHC).

"The higher vacancy rate can largely be attributed to rising supply of newly constructed rental apartments that surpassed a more modest increase in rental demand between the two October surveys. A total of 944 rental apartments were completed during the 12-month period prior to the October survey, which has resulted in a substantive increase in the purpose-built rental universe and a higher apartment vacancy rate this fall," said Goodson Mwale, CMHC's Senior Market Analyst for Saskatchewan.

Based on a sample of structures common to both the 2013 and 2014 surveys(2), the average two-bedroom rent in the Regina CMA increased by three per cent year-over-year in October 2014, compared to a 3.7 per cent gain from October 2012 to October 2013. The largest same-sample rent increase was reported in bachelor suites at 4.9 per cent year-over-year in October 2014. Among the smallest rent increased in structures common to both surveys were apartments with three or more bedrooms, with an estimated 2.5 per cent rent gain over the October 2013 survey.

CMHC's October 2014 survey reported an increase in apartment vacancies in nearly all zones within the City of Regina. The vacancy rate ranged from as high as 4.7 per cent in the Northeast zone to as low as 0.9 per cent in the Wascana University area. Much like in the October 2013 survey, apartment vacancies remained low in the Wascana University area, given the proximity of units to the University of Regina and strong demand from students. The vacancy rates by bedroom type ranged from two per cent for apartments with three or more bedrooms to a high of 3.4 per cent for two-bedroom suites.

In new and existing structures, the average monthly rent for a two-bedroom apartment in the Regina CMA was $1,079 in October 2014. The Northwest reported the highest average monthly rent for a two-bedroom apartment at $1,280. Rental structures in this zone tend to be newer with additional amenities, thus command higher rents. The lowest average rent for a two-bedroom apartment was reported in the West zone at $969 per month.

CMHC's Fall Rental Market reports also include information on the secondary rental market for some centres. In the Regina CMA, the vacancy rate in rental condominium apartments was 1.2 per cent in October 2014, compared to 1.4 per cent in October 2013.

CMHC recognizes that there is demand to fill information gaps with respect to Canada's housing markets. To address this need CMHC has, for the first time, asked property managers to provide information on the total number of condominium apartment units owned by people whose permanent residence is outside of Canada as part of its survey. The condominium foreign investment information was collected in 11 Census Metropolitan Areas (CMA) in Canada. They include: Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Toronto, Ottawa, Montréal and Québec.

The results of this additional question indicate that the percentage of foreign investment in condominiums in Victoria is 1.1 per cent, Vancouver 2.3 per cent, Calgary 0.2 per cent, Edmonton 0.1 per cent, Saskatoon 0.3 per cent, Regina 0.1 per cent, Winnipeg 0.1 per cent, Toronto 2.4 per cent, Ottawa 0.7 per cent, Montréal 1.5 per cent and Québec 0.6 per cent. With respect to location, the city core in Canada's largest rental markets (Montreal, Toronto and Vancouver) experienced larger foreign condominium ownership. (More details can be found on page 5 of the National report).

Data related to today's report is also available from CMHC's Housing Market Information Portal at https://www03.cmhc-schl.gc.ca/hmiportal/en/

Rental Market data is also available in English and French at the following link: Fall 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.

Follow CMHC on Twitter @CMHC_ca

(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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A table is available at the following address: http://media3.marketwire.com/docs/984181a.pdf

Contact Information

  • Market Analysis Contact:
    Goodson Mwale, Senior Market Analyst
    (306) 975-4897
    gmwale@cmhc.ca

    Media Contact:
    Charles Daniel Mainville, Senior Communications Consultant
    (403) 515-2915
    cdmainvi@cmhc.ca