October 2014 Rental Market in Thunder Bay

THUNDER BAY, ONTARIO--(Marketwired - Dec. 16, 2014) - The rental apartment vacancy rate¹ in the Thunder Bay Census Metropolitan Area (CMA) remained relatively stable at 2.3 per cent in October 2014, according to Canada Mortgage and Housing Corporation (CMHC)'s Fall 2014 Rental Market Survey (RMS).

"Increased international student enrolment and the aging population are supporting rental demand while continued low mortgage rates make moves to homeownership attractive." noted Warren Philp, Market Analyst at CMHC's Thunder Bay Office. "Frequently, older age groups look to rental accommodation as one alternative for meeting their housing needs. Increased demand for rental is being met partly through higher-density forms of accommodation that includes purpose-built apartments or condominiums that are offered for rent," concluded Philp

On the basis of a sample of structures common to both the 2013 and 2014 surveys², the average two-bedroom apartment rent increased by 3.9 per cent in Thunder Bay.

Vacancies by bedroom type in Thunder Bay showed an increase only for units with two bedrooms. The two bedroom unit vacancy rate rose to 2.1 per cent from 1.8 per cent while both bachelor and one bedroom unit vacancy rates declined. The highest rents in Thunder Bay were found in Zone 1 or the North Ward, also the part of the city with the highest demand for rental accommodations and hence, the lowest vacancy rate.

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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