CMHC reported today in their latest rental market survey that vacancy rates rose from 2.2 to 2.8% in 35 major Canadian cities in October.
Specifically for the Vancouver area, where I reside and conduct the majority of my business, there was a significant jump in the vacancy rate. It was at 0.5% in October 2008 but for October 2009 it sits at 2.1%. However, despite the increase in vacancy rates rental rates have risen. In the Vancouver area rates rose about 2.6%. These numbers are for buildings specifically built for rental that contain more than 3 units for rent.
Investor owned single units show a similiar trend.
What does this mean? Well, if you own a rental property it may take you a little longer to find a tenant but may get more monthly. If you are looking to purchase a rental unit I would suggest some additional caution and due diligence should this market trend continue. Investors will want to ensure that they are able to carry the costs should the unit sit empty for a short while. Don’t over extend yourself.
For the full report, and numbers specific to your area, see the link below.
I would love to hear thoughts from all you landlords or investors.
