Average Rental Vacancy Rate in Ontario 2.2%

Rents drop in real terms; Overall apartment availability=3.8%

Toronto, Ontario (Dec 13, 2011) – Canada Mortgage and Housing Corporation today released its October 2011 Rental Market Survey data.  Today’s data demonstrates that a healthy supply of rental units exists for tenants, while monthly rents continue to be outpaced by inflation.

CMHC announced that the average 2-bedroom rent increase in both Ontario and in Toronto was only 1.8% from October 2010 to October 2011. Ontario’s consumer price index increased 2.7% over the same period.

CMHC cited economic uncertainty as a reason for lower vacancy rates. Tenants considering purchasing a home, which is more expensive, likely postponed this decision. According to CMHC, sharp increases in home prices since last fall increased the relative cost of owning vs. renting.

CMHC’s data shows Ontario rents continued to decline in real terms, from $883 in 2002, to $840 in 2011, one dollar less than in 2010 (in constant $2002).  Vacancy rates in Ontario remain stable, at 2.2%, just below last year’s average vacancy of 2.9%.

The availability rate for apartments, a better indicator that also includes vacant units plus units where an existing tenant has given notice to move, was 3.8% in October 2011.

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