The State of Canada's Cities and Communities 2012 - FCM

Chapter 5
Page 8
RENTAL DEMAND PUSHING UP PRICES
QOLRS communities continue to experience
pressure on the local rental market with relatively
lower vacancies than the rest of Canada.
A balanced rental vacancy rate is widely accepted
as 3%, meaning that of every 100 rental units,
three are physically unoccupied and available for
immediate rental. Vacancy rates falling consistently
below the 3% equilibrium rate generally
correlate with upward pressure on rents. (see
Figure 5). In 2010, nearly half of QOLRS cities
reported critically low vacancy rates of less than
2%, including Ottawa at 1.8%, Vancouver and
St. John’s at 1.4%, Regina at 1% and Winnipeg,
with the tightest vacancy rate, at 0.9%. The 2010
average for all QOLRS communities was 2.6%
compared to Canada’s 3.1%.
COMMUNITY SNAPSHOT:
VANCOUVER,
BRITISH COLUMBIA
The Challenge: Supporting Private
Sector Rental Development
The City of Vancouver has one of the
tightest rental markets in the country
and the highest average rents in
the QOLRS. Vancouver estimates the
region needs 1070 new rental units per
year to adequately address housing
demand, yet only 385 new rental units
were built in each of the last five years.
Actions Taken: In 2009 the City of
Vancouver introduced the Short Term
Incentives for Rental Housing (STIR)
program, a 30-month initiative aimed
at supporting the construction industry
by encouraging the development
of new market rental housing. The
incentive package includes a reduced
number of required parking spaces,
increased density, expedited permit
processing and, in the case of for-profit
affordable housing, a waiver of the
Development Cost Levy.
FIGURE 5. VACANCY RATE FOR CANADA
AND QOLRS COMMUNITIES, 2010.
Winnipeg
Québec (CMQ)
Regina
Kingston
St. John’s
Vancouver
0.9%
1.0%
1.0%
1.1%
1.4%
1.4% Severe
shortage
of rental
Capital Region District
1.5%
Halton
1.6%
Peel
1.7%
Ottawa
1.8%
Metro Vancouver
2.0%
York
2.0%
Halifax
Toronto
Gatineau
2.4%
2.4%
2.5%
Moderate
shortage
of rental
QOLRS
2.6%
Saskatoon
2.6%
Durham
2.9%
Waterloo
2.9%
Montréal (CMM)
Canada
3.0%
3.1%
Balanced
rental
Sudbury
3.5%
Calgary
3.8%
Surrey
4.1%
Edmonton
4.3%
London
4.4%
Niagara
5.1%
Hamilton 6.2%
SOURCE: CANADA MORTGAGE AND HOUSING, RENTAL MARKET
SURVEY, 2001-2010, SPECIAL ORDER FOR THE QOLRS
NOTE ON DATA: QOLRS TOTAL VACANCY RATES ARE CALCULATED
USING QOLRS RENTAL QUARTILES AND MAY NOT BE EQUAL TO
THAT PUBLISHED IN THE CMHC ANNUAL REPORT.