Vacancy rates across Canada continued to decrease in 2011 as demand and prices for rental accommodation climbed steadily over the past year. The latest report released by Canada Mortgage and Housing Corporation (CMHC) indicates that rental vacancy rates across Canada’s 35 major city centers (CMA’s) decreased to 2.2% in October 2011 from 2.5% in April 2011 and 2.6% a year ago in October 2010.
“Modestly higher levels of employment among persons aged 15 to 24 likely increased household formation among young adults, thereby increasing rental housing demand. This, combined with the supply of newly constructed rental apartments moving slightly lower, pushed Canada’s vacancy rate downward, said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre.
“Demand for rental condominium apartments remained strong, with the vacancy rate for such units falling in most of Canada’s largest urban centres, including Toronto, Montreal and Vancouver.”
Rental vacancy rates in October 2011 ranged across the provinces with the Canada’s lowest vacancy rates being found in Manitoba at 1.0%, Newfoundland and Labrador at 1.3%, Saskatchewan at 1.9%, Ontario at 2.2%, British Columbia at 2.4%, Quebec at 2.6%, Nova Scotia at 2.7%, Prince Edward Island at 2.9%, Alberta at 3.4% and New Brunswick with the highest vacancy rates in the country at 4.8%.
A closer look at Provincial vacancy rate figures in 2011 reveals that between April 2011 and October 2011, Prince Edward Islands Vacancy rate dropped dramatically over that period, down -1.6% while New Brunswick and Manitoba tied for having the highest increase at +0.3% over the same timeframe.
Canadian Provincial Rental Vacancy Rates CMHC – Oct 2011 vs. Apr 2011:
| Newfoundland and Labrador | 1.3% | 2.1% | -0.8% |
| Prince Edward Island | 2.9% | 4.5% | -1.6% |
| Nova Scotia | 2.7% | 3.0% | -0.3% |
| New Brunswick | 4.8% | 4.5% | +0.3% |
| Quebec | 2.6% | 2.4% | +0.2% |
| Ontario | 2.2% | 2.5% | -0.3% |
| Manitoba | 1.0% | 0.7% | +0.3% |
| Saskatchewan | 1.9% | 2.5% | -0.6% |
| Alberta | 3.4% | 4.7% | -1.3% |
| British Columbia | 2.4% | 3.7% | -1.3% |
| Canada CMA – Total | 2.2% | 2.5% | -0.3% |
A look at Canadian vacancy rates over the past year shows that between October 2011 and October 2010, the biggest drop in Provincial vacancy rates over that period was in Alberta at -1.2% while the biggest increase was in Prince Edward Island at +0.7%.
Canadian Provincial Rental Vacancy Rates CMHC – 2011 vs. 2010:
| Newfoundland and Labrador | 1.3% | 1.0% | +0.3% |
| Prince Edward Island | 2.9% | 2.2% | +0.7% |
| Nova Scotia | 2.7% | 2.9% | -0.2% |
| New Brunswick | 4.8% | 4.5% | +0.3% |
| Quebec | 2.6% | 2.7% | -0.1% |
| Ontario | 2.2% | 2.9% | -0.7% |
| Manitoba | 1.0% | 0.9% | +0.1% |
| Saskatchewan | 1.9% | 2.5% | -0.6% |
| Alberta | 3.4% | 4.6% | -1.2% |
| British Columbia | 2.4% | 2.7% | -0.3% |
| Canada CMA – Total | 2.2% | 2.6% | -0.4% |
Over the past year, vacancy rates have fallen in six provinces while increases have occurred in four others. As of October 2011, Nova Scotia saw rental vacancy rates decrease by -0.2%, Quebec saw rates go down -0.1%, Ontario -0.7%, Saskatchewan down -0.6%, Alberta down -1.2% and BC vacancy rates were down -0.3%.
From October 2011, Newfoundland and Labrador saw vacancy rates rise by +0.3% over the past year, Prince Edward Island saw rates rise +0.7%, New Brunswick rose +0.3% while Manitoba rose +0.1%.
Canadian Provincial Vacancy Rate Summary – October 2011:
- Newfounland and Labrador – Provincial Rental Vacancy Rate of 1.3% in October 2011 (up +0.3%) compared to 1.0% in October 2010.
- Prince Edward Island – Provincial Rental Vacancy Rate of 2.9% in October 2011 (up +0.7%) compared to 2.2% in October 2010.
- Nova Scotia – Provincial Rental Vacancy Rate of 2.7% in October 2011 (down -0.2%) compared to 2.9% in October 2010.
- New Brunswick – Provincial Rental Vacancy Rate of 4.8% in October 2011 (up -0.3%) compared to 4.5% in October 2010.
- Quebec – Provincial Rental Vacancy Rate of 2.6% in October 2011 (down -0.1%) compared to 2.7% in October 2010.
- Ontario – Provincial Rental Vacancy Rate of 2.2% in October 2011 (down -0.7%) compared to 2.9% in October 2010.
- Manitoba – Provincial Rental Vacancy Rate of 1.0% in October 2011 (up -0.1%) compared to 0.9% in October 2010.
- Saskatchewan – Provincial Rental Vacancy Rate of 1.9% in October 2011 (down -0.6%) compared to 2.5% in October 2010.
- Alberta – Provincial Rental Vacancy Rate of 3.4% in October 2011 (down -1.2%) compared to 4.6% in October 2010.
- British Columbia – Provincial Rental Vacancy Rate of 2.4% in October 2011 (down -0.3%) compared to 2.7% in October 2010.
The CMHC Fall 2011 Rental Market Survey also found that the rental apartment availability rate in Canada’s 35 major city centers (CMA’s) stood at 3.2% in October 2011, down from 3.8% a year ago in October 2010. A rental unit is considered available by the CMHC survey if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move out and a new tenant has not signed a lease.
| References: |
| 1. http://www.cmhc-schl.gc.ca/en/index.cfm |
