Renters in Canada are facing the toughest market in decades with low vacancies, high prices and rising demand, according to the Canada Mortgage and Housing Corporation (CMHC).
housing agency released its annual rental market report Thursday, which showed the national vacancy rate for purpose-built rental apartments fell to 1.9 per cent last year – the lowest level since 2001.
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Meanwhile, high net migration, the return of students to on-campus learning and rising home ownership costs caused rental demand to exceed supply.
“High mortgage rates, which exacerbated the already inflated cost of homeownership, made the transition to homeownership difficult and less attractive for renters,” CMHC said in a statement.
CMHC data also showed that the average rent increase for two-bedroom units that had been turned over to a new tenant was significantly above the average rent increase for units without a turnover. The agency said this made it difficult for Canadians to enter the rental market or find new housing to rent.
“Low vacancy rates and rising rents were a common theme across Canada in 2022,” CMHC chief economist Bob Dugan said in a statement.
“This has led to affordability challenges for renters, especially those in the lower income group, with very few units available in the market in their price range.”
According to CMHC, the median rent for a two-bedroom rental condominium apartment saw a significant increase from $1,771 to $1,930, up nearly nine percent year over year.
Canada is also facing a housing crisis with a shortage of both homes and construction workers to build new units.
Another CMHC report released last week found that the annual rate of new home construction slowed five percent in December 2022 compared to November.
Last month, to help deal with skyrocketing rents across the country, the Canadian government opened applications For one time top-up as part of canada housing benefit (CHB) program – an initiative that Would put $500 in the pockets of low-income renters.
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