Ottawa Vacancies Fall as Rents Increase
Posted July 5th, 2010
Wednesday, June 16, 2010
Rental vacancies fell and rents rose faster in Ottawa than in the many other major cities in the last year.
Canada Mortgage and Housing Corp. said Tuesday that vacancy rates fell to 2.4 per cent in April from 2.7 per cent a year earlier.
The average rent for a two-bedroom apartment rose 2.9 per cent to $1,061 over the same period.
Sandra Perez-Torres, a CMHC analyst, said demand is still high for rental units in Ottawa because the combination of low unemployment and high average weekly earnings compared to other big cities “makes Ottawa a magnet for immigrants.”
In addition, the rental supply is tight because only seven per cent of the apartment units that were built in the last five years were aimed at renters.
While the Ottawa condominium apartment stock is growing, she said it typically takes new arrivals in the country at least five years before they can afford to buy.
In Gatineau, the vacancy rate rose to 2.8 per cent from 2.0 per cent in April 2009.
Average rents rose 2.4 per cent to $713 for a two-bedroom apartment.
Across the country, CMHC said the average rental apartment vacancy rate in 35 major centres increased slightly to 2.9 per cent in April from 2.7 per cent a year earlier.
“Rental construction and competition from the condominium market added upward pressure on vacancy rates and historically low mortgage rates attracted renter households towards homeownership over the last year,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre.
Results of this survey reveal that, in April 2010, the centres with the lowest vacancy rates were Québec City (0.4 per cent), Regina (0.8 per cent), Winnipeg (1.0 per cent), and St. John’s (1.1 per cent).
CMHC said the centres with the highest vacancy rates were Windsor (12.4 per cent), Peterborough and Abbotsford (6.6 per cent each).
Rents declined in Alberta, led by 6.4 per cent in Calgary. Ottawa had one of the biggest increases among major cities except for Winnipeg, which was up 4.6 per cent. Rents rose 1.0 per cent in Toronto, 1.3 per cent in Halifax, 2.8 per cent in Montreal and 2.9 per cent in Vancouver.
CMHC said the highest average monthly rents for two-bedroom apartments in new and existing structures were in Vancouver ($1,150), Toronto ($1,134), Calgary ($1,082), and Ottawa ($1,061). These four centres had average rents at or above $1,000 per month.
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