Lower rental vacancies indicate better performing Canada real estate market

Canada’s real estate market has achieved what several experts are calling a soft landing in recent times since price growth has been small yet steady and sales figures have also been rebounding in several markets, especially Toronto and other parts of the GTA. Another CMHC (Canada Mortgage Housing Corp) revelation indicates that the housing market in Canada is not doing too badly overall. The overall rental vacancy rates have now come down again for the second consecutive year. Demand has grown swiftly for rental housing and has managed to outstrip supply levels. This is a trend which augurs well for the real estate market, particularly the condominium wave that is transforming areas in Toronto and other cities.

The rental vacancy rate, according to CMHC, has come down to 2.4% this year as compared to 3% last year. 37, 000 new purpose-built apartment units were added to overall inventory throughout Canada in 2018 as per the agency. However, demand has increased by a whopping 50, 000 apartment units as per reports. The occupied unit number went up by 2.5% for October 2018 as compared to 1.9% in October 2017. Vacancy rates went up by slightly in Manitoba, Ontario and B.C. although they came down in Alberta, Quebec, Atlantic Provinces and Saskatchewan.

Average rentals for two bedroom apartments increased by 3.5% between October 2017 and October 2018 as per CMHC. Average rentals have touched $787 every month for a regular bachelor apartment unit while a one bedroom unit comes for $946 every month on an average. Rentals have touched $1025 for a two bedroom unit while apartments which have three or even more bedrooms can cost anywhere around $1097 every month. Yet, there are price variations throughout Canada. For example, a two bedroom condo in Toronto comes for a whopping $2393 each month although a similar unit in Ottawa can be had at $1014 every month on an average.

All in all, the low vacancy rates point to a revival in demand for housing, something that will boost the Canada real estate market in the long run. Toronto, in particular, has been witnessing a condo boom due to its commercial progress, the influx of several leading IT and technology giants and transformation of several zones in commercial hubs, all of which have sparked widespread real estate development. Some of the top projects in Toronto include Twenty Lombard, O2 Maisonettes on George and 170 Spadina to name a few.