Last year, Canada\u2019s national vacancy rate was the lowest in 20 years.<\/p>\n
The vacancy rate for rental apartments hit the lowest level in 20 years, proving last year’s shortage of rental properties and monthly rent increases.<\/p>\n
According to the 2022 Rental Market Annual Report released by the Federal Mortgage and Housing Corporation, the vacancy rate for rental apartments nationwide fell from 3.1% in 2021 to 1.9% in 2022. This is the lowest level since 2001.<\/p>\n
On the other hand, demand for new rental apartments increased by 18%. Across the country, from October 2021 to October 2022, about 55,000 new rental units were supplied (the highest since 2013), but it was not enough to keep up with the rapidly growing demand, which led to a drop in the vacancy rate.<\/p>\n
Rents have risen naturally due to supply shortages.<\/p>\n
The average rent for rental apartments across the country rose by 5.6% from a year ago. Halifax, where rent rose the most, rose 9.3% year-on-year (average monthly rent was $1,449), Toronto rose 6.5% from a year ago to $1,765, and Vancouver recorded $2,002, up 5.7% year-on-year.<\/p>\n
Since this figure is based on apartments built for rental purposes, it does not include general condominiums, but it is used as meaningful data to analyze supply and demand in the rental market nationwide. Then, what about renting a general condo rather than a rental apartment?<\/p>\n
The Housing Corporation announced the 2022 condo vacancy rate in Greater Toronto Area at 1.1%, Vancouver at 1.6%, Calgary at 1.8%, Montreal at 2%, Hamilton at 0.1% and London at 0.9%. Prices have risen to a level incomparable to rental apartments.<\/p>\n
According to the Toronto Real Estate Commission’s third quarter data, Toronto studio (aka one-room) condo monthly rent rose 21.3% over the past year to $2,057, a one-bed unit rose 20.4% to $2,481, and a two-bed condo rose 14.5% to $3,184, respectively.<\/p>\n
Donna Lee, a broker at Home Standard Real Estate, said, \u201cUntil last September, competition was fierce and prices rose a lot, but it is relatively easy to find a rental now, which is not the peak season. Still, North York, in areas with good school districts, are still selling out quickly,\u201d he explained.<\/p>\n
He added, “Demand and supply also affect rental contracts, but in individual transactions, the tenant’s credit score and income are also important considerations, so if you feel that your requirements are a little short, moving away from the peak season is a good strategy.”<\/p>\n
Realtor Lim Seong-joo of Royal Le Page New Concept advises, \u201cIf renting is difficult, targeting a new condo is a good way to move in.\u201d He said, \u201cIt may be a little cluttered, such as the common space being closed, but there is a relatively high possibility of signing a contract with many listings coming out at the same time, and there may be advantages in terms of price. Also, there are some builders who don’t allow listings on MLS for rent, so if you look for them, there are some new condos for sale that landlords are having trouble finding tenants.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"