Vacancies, rents up across province

The Telegram
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Apartment vacancies are up in St. John’s and Newfoundland — but so are rents.

According to the Fall 2013 report from the Canada Mortgage and Housing Corp. (CMHC) , released recently, the apartment vacancy rate was 2.7 per cent in October, up from 2.2 per cent in October 2012.

In St. John’s, the vacancy rate was 3.2 per cent in October, compared with 2.8 per cent the year before.

The average two-bedroom rent in Newfoundland was $784, up from $725 in October 2012. The report contains no Labrador information, as it surveyed only centres with a population of more than 10,000.

Corner Brook posted a vacancy rate of zero per cent, down from one per cent the year before, while Gander’s rose from 0.5 per cent in 2012 to 1.2 this year. Grand Falls-Windsor saw its rate double from 1.1 per cent last year to 2.2 per cent this year. Figures weren’t available for Bay Roberts, with the data from CMHC not considered statistically reliable.

Two-bedroom rental rates were highest in St. John’s, at $864 per month, up from $798 last year, up 8.3 per cent. Corner Brook rents leapt 15.7 per cent, from $610 in October 2012 to $706 this year. Grand Falls-Windsor went from $659 to $683 (3.6 per cent), Gander went from $596 to $638 (seven per cent), and Bay Roberts was up 5.3 per cent, from $563 to $593.

The report says income growth helped drive up home ownership despite high home prices, thereby increasing rental vacancy.

Corner Brook’s “well diversified economy paired with strengths in the health, education and tourism sectors remained supportive of demand for rental units.”

 

telegram@thetelegram.com

Organizations: Canada Mortgage and Housing

Geographic location: Corner Brook, Bay Roberts, Newfoundland

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Recent comments

  • a business man
    January 04, 2014 - 16:31

    rents will continue to rise until the end of time. that is the effect of inflation. personally, I will not reduce my rents because I believe that as a landlord, I am entitled to a ROI that is greater than what I would get if I just banked my investment. After all, why be a landlord if I got less. As long as all landlords stay strong and demand higher rents, then all is good. Remember, tenants often cannot afford to buy a home and thus MUST rent.

  • david
    December 27, 2013 - 10:07

    Newfoundland continues its journey as the one place on Earth where basic economic supply and demand has no bearing on anything at all. Even communist China has succumbed to the power of the market...but not us.