Rental vacancies are up, but the market remains tight

http://www.timescolonist.com/news/local/rental-vacancies-up-but-market-remains-tight-1.28924

New rental vacancy figures released by Canada Mortgage and Housing Corp. paint an increasingly positive picture for the Capital Region’s estimated 50,000 renters and their families. The vacancy rate for purpose-built apartments is up to 2.7 per cent, a significant increase from 2.1 per cent a year ago and far above four straight years of 0.5 per cent from 2005 to 2008.

Still, a Victoria two-bedroom apartment rents for $1,059 on average, compared to a national average of $901, says Carol Frketich, CMHC market analyst. A one-bedroom rents for $828 and a bachelor apartment commands an average of $695 — roughly 50 per cent of full-time pay for someone earning B.C.’s minimum wage of $10.25 per hour.

Some vacancies may reflect tenants becoming homeowners in a softer real estate market, but with fewer jobs for young people, more may be moving back home or doubling up in apartments with friends.

“The employment level in the 15-24 age group has declined consistently since 2008. Younger household groups have a higher tendency to rent,” the CMHC report said.

Survey results also show rent increases were held under one per cent at least for two-bedroom units during the last year, even though landlords legally could have charged more than four per cent.

The lowest bachelor rents are in Esquimalt and in West Shore communities, at $643 and $642, respectively.
Bachelors also had the lowest vacancy rates — at 1.3 per cent.

The local vacancy rate is just under the national rate of 2.7 per cent that CMHC found in 35 urban census areas. Cities, such as Regina at one per cent and Guelph at 1.4 per cent are far tighter than Victoria. The Abbotsford rate is 4.2 per cent, the highest in B.C.

What makes it difficult for families who need to rent is the higher percentage of one-bedroom apartments in Greater Victoria compared to two-bedrooms elsewhere, Frketich added.

All told, there are 23,495 purpose-built apartments from Sooke to Sidney, and another 700 rental townhouses.
Year-to-date, from Sooke to Sidney, there were 276 new apartment units built, up from 234 in 2011. Secondary suites in private homes or condos are not included in the CMHC survey.

The vacancy rate in investment condos — a significant slice of the local rental market — was a bit lower at 2.2 per cent, Frketich said.

(h)(s)