Saskatoon apartment vacancy rate drops to record lows
The Rental Market Report released yesterday by Canada Housing and Mortgage Corporation (CMHC) shows apartment vacancy rates in Saskatoon falling to a record low of just .6%, down from 3.2% last October. Saskatoon “Southwest” showed the largest number of available apartments and a vacancy rate of 2.1%. The six other areas measured in the report have vacancy rates as low as .1% and as high a one percent.
It’s no surprise to anyone that rents have increased accordingly. According to CMHC, the average monthly rent for all types of suites surveyed saw a $76 increase from October of last year. I’m not involved in the rental markets but my perception is that rents are increasing at a much higher rate than what’s reported here.
CMHC points to a number of factors which are impacting vacancy rates including expanding employment and wages, in-migration, rapid price escalation of new and resale housing (affordability), rehabilitation of existing apartments leading to lower turn-over, and of course, increased numbers of condo conversions.
Analysts at CMHC expect vacancy rates to stabilize at less than 2% through 2008 while rents increase an additional $60.
Read to full Rental Market Report here
I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.
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Norm Fisher
Royal LePage Saskatoon Real Estate
11 comments so far. We'd love to hear your thoughts.
May 26th, 2009 at 10:44 AM
Wow, I can’t believe how low our rental vacancy rate has dropped – we’re one of the lowest in the country! On rent increases, I’m not surprised by the growth. Rents have skyrocketed with new owners (with high motgages) but old owners don’t raise rent much if at all I’m guessing.
I’m surprised CMHC only sees modest employment growth for Saskatoon though 2008. We have major construction happening all throughout Saskatoon with VIDO and river landing. Not to mention all the new lots and houses that are expected to be built. I see next year as a record year for employment growth but anything’s possible.
May 26th, 2009 at 10:44 AM
Hey Norm, just curious – would you discount a 2 bedroom basement suite (that’s what I have) from a 2-bedroom suite (that’s what all the stats are in)?
May 26th, 2009 at 10:46 AM
Hi Doug,
It’s my understanding that this report is focused on “apartments” and wouldn’t include basement suites like yours. This is just a guess, but I would think that the vacancy rate is even lower when it comes to suites situated in houses, aw well as duplexes. etc.
As far as the forecasts are concerned, I’m sure you could look at the last half dozen issued by CMHC and find that they’re all off quite a bit. They seem to be a little better at current situation alalysis.
May 26th, 2009 at 10:46 AM
Being in the real estate market I thought you would appreciate this article comparing happiness to living space (square footage)…
It was published in this month’s Walrus Magazine “Me Want More Square Footage! — Why Following the Urge to Buy Big Might Not Make You Happy”.
http://www.walrusmagazine.com/articles/2008.02-homes-urban-happiness-me-want-more-square-footage/
May 26th, 2009 at 10:48 AM
Marta,
I love it! Thanks for sharing that brilliant post. I guess I’ve got another blog to add to my feed reader.
I suspect we’d probably all be happier if we spent more time sharing a bottle of wine with our neighbours.
Thanks again.
May 26th, 2009 at 10:48 AM
I don’t know if living with 5 random adults is really a recipe for happiness, either: I suspect the author hasn’t done the shared-house thing since they were in university, and frankly, it gets old quick when you’re old!
I’m not surprised at the vacancy rate issue: I there have been lots of conversions, and probably a fair number of sales of rental houses. I’m only praying that the unit I’m presently in doesn’t go condo on me — like the last one.
May 26th, 2009 at 10:49 AM
you are a good guy. if i have any question about real estate , may i ask you for help ?
May 26th, 2009 at 10:50 AM
jrochst,
Nice to see you again.
Yes, actually living with five adults would probably require much larger volumes of wine. It can be tough enough living with your own kids when they approach those adult years.
Sorry to hear that you lost your place to a conversion. It’s my understanding that over 1,000 units wereapproved for conversion this year. Many of those will actually be on the market next year. There’s a fair bit of condo inventory right now as it is. With rents on the rise, I wonder if we’ll see more interest in holding those buildings.
Kenny,
Lol! Thanks. We’re happy to take your questions.
May 26th, 2009 at 10:50 AM
Love the rates the CMHC creates…my rent has went up 150 bucks a month and i’m not NEARLY the highest victim of this…$75 is hilarious.
May 26th, 2009 at 10:50 AM
i am renter in this city and am moving out with a friend of mine and were getting nowhere. we first started looking for a 2 bd room apt. were 24 dont smoke no kids we dont party but everywhere it seams like 30 other applicants have beat us to the punch. so were now jut looking for something anything but it sucks if we cant find a roof over our heads soon well….i saw a bench in a really nice park and rents super cheep! i just hope someone else isnt there already.
May 26th, 2009 at 10:51 AM
diane,
Have you tried calling a property manager? You may have some luck there. Check the yellow pages. Good luck.