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Kelowna Rental Rates Up in 2008
Rental rates in Canada rose in 2008, says CMHC
Rental housing is in short supply in many major markets across Canada, and the resulting demand has spurred an increase in average rental rates. At least, so says the semi-annual Rental Market Survey recently released by Canada Mortgage and Housing Corporation (CMHC).
According to CMHC’s Chief Economist, "Demand for rental housing in Canada increased due to high migration levels, youth employment growth, and the large gap between the cost of homeownership and renting. Rental construction and competition from the condominium market were not enough to offset growing rental demand.''
The highest average monthly rents for two-bedroom apartments in new and existing structures were in Calgary ($1,148), Vancouver ($1,124), Toronto ($1,095), and Edmonton ($1,034), followed by Ottawa ($995), Kelowna ($967), and Victoria ($965).
Kelowna had an 8.4 per cent increase in the rental cost and the lowest urban vacancy rate of 0.3 per cent in 2008.
The average rent for two-bedroom apartments in existing structures increased in all major centres. The largest rent increases in existing structures were recorded in Saskatoon (20.3 per cent), Regina (13.5 per cent), Edmonton (9.2 per cent), and Kelowna (8.4 per cent). Overall, the average rent for two-bedroom apartments in existing structures across Canada's 34 major centres increased by 2.9 per cent between October 2007 and October 2008.
The CMHC Rental Survey showed that vacancy rates for rental condominium apartments in 2008 were lower than vacancy rates in the conventional rental market in Ottawa, Regina, Saskatoon, and Toronto. The highest average monthly rents for two-bedroom condominium apartments were in Toronto ($1,625), Vancouver ($1,507), and Calgary ($1,293).
So, what does all this mean to the Canadian consumer? If you’re currently renting at a monthly rate similar to those in the CMHC Survey, it may interest you to know that with today’s low interest rates, you could probably carry the cost of a mortgage for a very similar amount to what you’re now paying in rent. And if you’re thinking of buying, why not consider a home that has provision for a rental apartment. You could rent out part of your property, and let someone else pay off your mortgage for you. Interested?
Contact Paige and Al for more information on how to use the high cost of renting to your advantage.
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