Vacancy rates for condos in Toronto, Montreal and the Ottawa area are high and remain below pre-crisis levels, according to a new survey by real estate agency RENT3.
The survey by RENT and brokerage firm Lend Lease shows that Toronto’s condo vacancy rate is 5.5% compared to 6.5%, Montreal’s is 4.3% and Ottawa’s is 3.6%.
The survey also showed that there are fewer homes for rent in Toronto compared to Montreal, with only 2,300 units of rental housing available.
The survey also found that only 3,200 units of condo rental housing are available in Toronto.
“With so many vacancies, many new buyers have opted to purchase rental properties and stay put, while some investors are moving to other markets to diversify their portfolio, and the market remains strong,” said Paul Johnson, managing director of RENT.
Rent3, which conducts a quarterly survey on housing and property market trends in Canada, released the results of the survey earlier this month.
The study found that there were 3,890 new condos under construction in Canada in February 2017, and 7,731 condos under development in February 2018.
It also showed the vacancy rate for condos increased by 2.9% in January and February 2017.
According to Johnson, while the overall rental vacancy rate remains low, the number of units available for rent has been increasing.
“There are still a lot of empty rental units, especially in Toronto,” Johnson said.
“The rental vacancy is still pretty high in the GTA, but it’s growing.”
Rent 3 said the number and type of rental units available in each city and region remains the key drivers of the rental vacancy.
“In many regions, the rental market is still quite weak,” Johnson noted.
“For those regions that are seeing a significant rise in vacancy, it’s probably the availability of a condo or rental property that’s driving that increase.”
We’re seeing the same trend in Ottawa, where condo vacancy is down significantly.
But we’re seeing condo vacancies in Toronto continuing to rise as well,” he said.
Toronto is the largest market in Canada for rental properties, with 1,852 units of all types available.
It is followed by Montreal with 818 units, and Ottawa with 707 units.
According the survey, the average rental price of a new home in Toronto was $1,000,700 in January 2017.
In Montreal, the median price was $721,500, while in Ottawa it was $845,700.
The average price of new rental properties in Canada was $3,900,800 in January, $5,000 higher than the median in Toronto in 2017.