Ontario Rental Market Vacancy Rate Drops in Fall 2014

TORONTO, ONTARIO--(Marketwired - Dec. 16, 2014) - The rental apartment vacancy rate^[1] in Ontario urban centres^[2] was 2.3 per cent in October 2014, down from 2.6 per cent in October 2013, according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation.

"Improving employment conditions for younger households who typically rent and fewer rental households moving to homeownership supported rental demand in Ontario this fall. Meanwhile, fewer migrants and more condominium rental completions were factors less supportive of purpose-built rental demand. The net effect these factors had on the rental market was to exert downward pressure on the Ontario vacancy rate this fall," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist

With the exception of Greater Sudbury, vacancy rates were lower or remained flat in all remaining Ontario urban centres. The sharpest declines occurred in Peterborough (2.9%), Barrie (1.6%), Windsor (4.3%) and Hamilton (2.2%). The lowest vacancy rate was registered in Guelph (1.2%), Toronto (1.6%) and Barrie (1.6%) while the highest vacancy rates were registered in Windsor (4.3%), Greater Sudbury (4.2%) and St. Catharines-Niagara (3.6%)

Apartment rents for two bedroom units that were common to both 2013 and 2014 fall surveys^[3] rose by 2.1 per cent in October 2014 versus a 2.7 per cent increase this time last year. Fixed sample 2-bedroom apartment rents grew the fastest in Thunder Bay (3.9%), Guelph (3.0%) and Hamilton (2.8%) while growing the slowest in London (1.0%) and Peterborough (1.4%). Despite lower vacancy rates, modest income growth and a lower 2014 allowable provincial guideline increase dampened the growth in fixed sample rents across the province this year.

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.

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

^[2]Urban centres defined as centres with a population of 10,000 or more.

^[3]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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