The London area saw little change in apartment vacancy rates in 2012 over the year before.
On Thursday (Dec. 13), Canada Mortgage and Housing Corporation (CMHC) released its Fall Rental Market Report for the London Census Metropolitan (CMA. The vacancy rate in London CMA was essentially unchanged at 3.9 per cent as compared to a year prior.
On the basis of a fixed sample of structures common to both the 2011 and 2012 surveys, the average rent for two-bedroom apartments rent increased 2.4 per cent.
“Demand for smaller units increased the most, a trend that corresponds with the growth of one and two-person households between the 2006 and 2011 census counts,” said Alexander Bonnyman, CMHC senior market analyst for London. “Improved employment in the CMA also supported demand while inter-provincial migration continued to be a drag on the rental market.”
According to the survey, the Ontario vacancy rates rose to 2.5 per cent in October 2012, up from 2.2 per cent in the fall of 2011. Most urban centers registered higher vacancy rates.
The lowest vacancy rate was registered in Thunder Bay and Toronto while the highest vacancy rates were to the west of Toronto. With the exception of Windsor, Peterborough, Hamilton, London, Thunder Bay and Sudbury, vacancy rates moved higher in other centers.
“Some prominent factors dampened rental demand and exerted upward pressure on vacancy rates. Modest job growth, less in-migration and alternative rental housing options moderated demand for rental housing in Ontario,” said Ted Tsiakopoulos, CMHCs Ontario regional economist. “Other factors were more supportive of rental demand. Economic uncertainty and the rising cost of home ownership in Ontario restrained big ticket spending across the province since the fall of 2011. Consequently, tenants considering the jump to more expensive ownership housing likely postponed this decision.”
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.
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