According to the Rental Market Survey conducted in the spring by Canada Mortgage and Housing Corporation (CMHC), the average vacancy rate in privately initiated structures with three or more housing units in Quebec’s urban centres (with 10,000 or more inhabitants) reached 2.5 per cent in April, up by 0.2 of a percentage point over a year earlier.
“As in the recent past, the spring 2010 survey results reflected the meeting of offsetting factors, which, in the end, slightly favoured the easing of the market. Among the factors that contributed to the easing of the markets, two are noteworthy: the relatively weak job market for young people and the movement to homeownership. But while certain factors were causing rental market conditions to ease, others were acting in the opposite direction: the demographic phenomena, including migration and aging, and also, on the supply side, a small share of newly completed rental dwellings,” stated Kevin Hughes, Regional Economist at CMHC.
As well, the survey results revealed larger changes in several CMAs, and even a small decrease in the Québec area. For the other urban agglomerations, the results show an almost identical rate (2.4 per cent) in centres with 10,000 to 49,999 inhabitants and a more notable increase in the case of agglomerations with 50,000 to 99,999 inhabitants (2.8 per cent in the spring of 2010, versus 2.4 per cent during the same period in 2009).
“The picture of the market according to apartment size was fairly uniform across the province and had not changed since the last three spring surveys, as the market was still tighter in the case of larger apartments. In fact, the vacancy rates were significantly lower for two-bedroom and three-bedroom apartments (2.2 per cent and 2.0 per cent, respectively) than for bachelor units (4.8 per cent),” added Kevin Hughes.
The estimated change in the average rent in existing structures was more modest, with an increase of 2.2 per cent over 2009. And, the availability rate also rose compared to last spring.
Illustrating the conditions described above, the vacancy rate in the Montréal CMA remained relatively stable for a third straight year. The vacancy rate there rose marginally (from 2.7 per cent to 2.8 per cent). As well, demand for more spacious dwellings, particularly from families, was evidently still sustained.
The Québec CMA once again had the tightest rental market among all the metropolitan areas across Canada. The vacancy rate there was 0.4 per cent this past April. This market indicator revealed a very strong demand, which was attributable, in part, to a still active labour market in the area.
In the Gatineau area, rental market conditions eased, as the vacancy rate reached 2.8 per cent in April 2010, compared to 2.0 per cent in the spring of 2009. This easing trend was largely due to the economic conditions favouring access to homeownership.
Once again this year, the Sherbrooke CMA rental market eased. From 2.5 per cent in the spring of 2009, the vacancy rate there reached 3.7 per cent in the same month this year. The increase in the Sherbrooke area vacancy rate observed in 2010 resulted from a slowdown in demand. This weakening was caused mainly by the movement to homeownership (thanks to the low mortgage rates), combined with a youth job market that is just starting to pick up again.
The rental market also eased in the Trois-Rivières CMA over the past year, with a vacancy rate that reached 2.5 per cent this past April, versus 1.1 per cent during the corresponding period in 2009. A significant supply of new dwellings, combined with a less vigorous demand, pushed up the proportion of vacant units in the Trois-Rivières area.
In the Saguenay CMA, the vacancy rate was 1.8 per cent in April 2010. This level represented a small increase over a year ago and marked the end of the tightening that was observed on the market for the first time in October 2009.
“As in the recent past, the spring 2010 survey results reflected the meeting of offsetting factors, which, in the end, slightly favoured the easing of the market. Among the factors that contributed to the easing of the markets, two are noteworthy: the relatively weak job market for young people and the movement to homeownership. But while certain factors were causing rental market conditions to ease, others were acting in the opposite direction: the demographic phenomena, including migration and aging, and also, on the supply side, a small share of newly completed rental dwellings,” stated Kevin Hughes, Regional Economist at CMHC.
As well, the survey results revealed larger changes in several CMAs, and even a small decrease in the Québec area. For the other urban agglomerations, the results show an almost identical rate (2.4 per cent) in centres with 10,000 to 49,999 inhabitants and a more notable increase in the case of agglomerations with 50,000 to 99,999 inhabitants (2.8 per cent in the spring of 2010, versus 2.4 per cent during the same period in 2009).
“The picture of the market according to apartment size was fairly uniform across the province and had not changed since the last three spring surveys, as the market was still tighter in the case of larger apartments. In fact, the vacancy rates were significantly lower for two-bedroom and three-bedroom apartments (2.2 per cent and 2.0 per cent, respectively) than for bachelor units (4.8 per cent),” added Kevin Hughes.
The estimated change in the average rent in existing structures was more modest, with an increase of 2.2 per cent over 2009. And, the availability rate also rose compared to last spring.
Illustrating the conditions described above, the vacancy rate in the Montréal CMA remained relatively stable for a third straight year. The vacancy rate there rose marginally (from 2.7 per cent to 2.8 per cent). As well, demand for more spacious dwellings, particularly from families, was evidently still sustained.
The Québec CMA once again had the tightest rental market among all the metropolitan areas across Canada. The vacancy rate there was 0.4 per cent this past April. This market indicator revealed a very strong demand, which was attributable, in part, to a still active labour market in the area.
In the Gatineau area, rental market conditions eased, as the vacancy rate reached 2.8 per cent in April 2010, compared to 2.0 per cent in the spring of 2009. This easing trend was largely due to the economic conditions favouring access to homeownership.
Once again this year, the Sherbrooke CMA rental market eased. From 2.5 per cent in the spring of 2009, the vacancy rate there reached 3.7 per cent in the same month this year. The increase in the Sherbrooke area vacancy rate observed in 2010 resulted from a slowdown in demand. This weakening was caused mainly by the movement to homeownership (thanks to the low mortgage rates), combined with a youth job market that is just starting to pick up again.
The rental market also eased in the Trois-Rivières CMA over the past year, with a vacancy rate that reached 2.5 per cent this past April, versus 1.1 per cent during the corresponding period in 2009. A significant supply of new dwellings, combined with a less vigorous demand, pushed up the proportion of vacant units in the Trois-Rivières area.
In the Saguenay CMA, the vacancy rate was 1.8 per cent in April 2010. This level represented a small increase over a year ago and marked the end of the tightening that was observed on the market for the first time in October 2009.