According to CMHC’s 2019 Rental Market Survey, the average vacancy rate for the secondary rental condominium apartments across surveyed centres dropped to 1%.
The vacancy rate is down from 1.4% in 2018 and 1.6% in 2017. This is lower than the vacancy rate for purpose-built rentals, which also declined. The downward pressure on vacancy rates underscores the need for increased rental supply to ensure people in Canada have access to affordable housing.
We also see an increase in the average rents for 2-bedroom condominium apartments, including Toronto and Vancouver, where condominium apartment rents remain higher than in all other surveyed markets.
Rent for secondary rental condominium markets are higher than purpose-built apartments
The survey indicates that the rental condominium rent levels remain significantly above the average rent level of purpose-built apartments in all surveyed centres, including the markets of Toronto and Vancouver.
Both the Toronto and Vancouver area reports mention that high rental demand reflects, in part, lower affordability of homeownership in those two cities due to high home prices.
The Rental Market Survey gathers data and analysis for both the primary and purpose-built rental market as well as the secondary rental market. The primary rental market consists of units in privately initiated, purpose-built rental structures of three units or more. The secondary rental market covers condominium apartments offered for rent.