As mortgage rates climb, Canada’s overall vacancy rate dropped for a second year in a row, as demand for rental housing grew at a faster pace than supply, according to the Canada Mortgage Housing Corp.
The cost of renting is also upward bound. A two-bedroom condo in Toronto costs $2,393 a month, for example while the same in Ottawa could be had for an average of $1,014 a month.
The housing agency calculates that 37,000 new purpose-built apartments were added across Canada this year. But demand for apartments increased by 50,000, so there aren’t enough new ones to satisfy everyone who wants one.
Ontario, BC and Manitoba all saw an increase in vacancy rates, while Quebec, Alberta, Saskatchewan and the Atlantic provinces saw declines.
The average rent for a bachelor apartment is now $787 a month. A one-bedroom goes for $946, on average, while a two-bedroom costs $1,025. Apartments with three or more bedrooms — which are hard to find in the first place — cost an average of $1,097 a month.
BC saw the largest climb in rent, with Kelowna recording an 9.4 per increase. Saskatchewan, the province with the highest vacancy rates, saw rents go down slightly, by 0.5 per cent in Regina. -CINEWS