Condo dwellers settle in for the night in Toronto on Wednesday, November 18, 2020. The Canada Mortgage and Housing Corporation says the country’s rental market vacancy rate edged up alongside prices as COVID-19 spread. THE CANADIAN PRESS/Frank Gunn

Condo dwellers settle in for the night in Toronto on Wednesday, November 18, 2020. The Canada Mortgage and Housing Corporation says the country’s rental market vacancy rate edged up alongside prices as COVID-19 spread. THE CANADIAN PRESS/Frank Gunn

CMHC: Rental vacancies, prices edged up as COVID-19 spread across Canada

CMHC said prices were up even as demand was high because rental growth was so strong before the pandemic

More rental properties sat empty in 2020, especially in the Greater Toronto Area where the vacancy rate hit a 14-year high, said Canada Mortgage and Housing Corp.

A new report released by the federal housing agency on Thursday showed the rental market vacancy rate in the country’s big cities edged up to 3.2 per cent in 2020 from two per cent in 2019.

The slight increase came as COVID-19 spread across Canada, handing renters negotiating power and short-term rentals became less attractive while travel was restricted and unemployment soared.

“The economic impact of the pandemic has significantly reduced rental demand,” said CMHC chief economist Bob Dugan said in a statement.

“Lower international migration, fewer student renters and weaker employment conditions led to weaker inflows of new renters.”

CMHC’s report showed the vacancy rates for Canada’s three largest metropolitan areas, Toronto, Montreal and Vancouver, rose to 3.4 per cent, 2.7 per cent and 2.6 per cent respectively, as they grappled with higher supply and lower demand.

The Toronto area’s vacancy rate was at a 14-year high fuelled by job losses in the service and hospitality sectors, which tend to pay lower wages and employ younger workers.

Newcomers pushed up the rate too.

“Immigrants and non-permanent residents make up a significant share of renter households in the GTA. The COVID-19 pandemic all but halted immigration flows to the GTA,” said CMHC.

“The closure of international borders lessened the population growth of these two key groups that drive rental demand.”

Empty rental properties were even more common in Alberta, Manitoba and Saskatchewan. Vacancy rates increased to 7.5 per cent in Regina, 7.2 per cent in Edmonton, 6.6 per cent in Calgary, 5.9 per cent in Saskatoon and 3.8 per cent in Winnipeg.

In Eastern Canada, St. John’s (7.5 per cent), Charlottetown (2.7 per cent), Moncton (2.8 per cent) and Halifax (1.9 per cent) saw their vacancy rate increase, while Saint John’s stayed stable at 3.1 per cent.

Nationally, rental prices crept up. The average two-bedroom rent across cities with more 10,000 people rose 3.6 per cent to reach $1,165.

The average two-bedroom apartment rent were highest in Vancouver, Toronto, Ottawa and Victoria, where rents were $1,792, $1,653, $1,517 respectively.

CMHC said prices were up even as demand was high because rental growth was so strong before the pandemic.

“This suggests that landlords may be less willing to offer lower rents and instead offer alternative incentives at the risk of holding vacant units,” said CMHC.

“Local market intelligence gathered from stakeholders show that incentives such as lower deposit fees, free months of rent, free utilities/parking, and move-in cash bonuses were being used by landlords to attract potential tenants.”

The report also looked at rent arrears for the first time and found that 32.5 per cent of apartment owners reported their arrears rate to have remained similar to 2019, 58.3 per cent said it was higher and almost 10 per cent found it was lower.

Toronto recorded the highest rate of rent arrears in Canada at 10.68 per cent or 34,858 units.

That represents about $55 million in total rent in arrears, which was likely triggered by the city’s high proportion of hospitality and service, who tend to rent and were more likely to be laid off or see wage reductions during the pandemic.

Tara Deschamps, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

This Dec. 2, 2020, file photo provided by Johnson & Johnson shows vials of the COVID-19 vaccine in the United States. (Johnson & Johnson via AP)
Interior Health notes 80 new COVID-19 cases over the weekend

108 people in the region have died from the virus

A helicopter hired by Golden Dawn Minerals trails an electromagnetic scanner over Greenwood on Wednesday, March 3. Photo: Submitted
Helicopter flights above Greenwood, rural Grand Forks part of gold mining survey

Results to inform potential explorations by Golden Dawn Minerals, which owns Phoenix and other area mines

Selkirk College’s Tenth St. Campus in Nelson is among the locations where Interior Health will deliver the COVID-19 vaccine within the West Kootenay. Photo: Selkirk College
West Kootenay vaccine locations announced

Interior Health has released a list of places to receive the COVID-19 vaccine

Last week warming temperatures were a concern for Avalanche Canada forecasters, and those trends likely contributed to an avalanche that killed a West Kootenay snowmobiler on Thursday, March 4. Jen Coulter file photo.
Warming trend contributed to Kaslo fatality: Avalanche Canada

Concern for persistent layers has reduced since then

A West Kootenay man died in an avalanche on March 4 while snowmobiling near Mount Payne, which is indicted by the red flag. Illustration: Google Maps
Father of 3 dead after avalanche in West Kootenay

The man was snowmobiling with a group when incident occurred March 4

Third-grader Hudson Adrian (left) on Wednesday, Feb. 24, poses with fourth-graders Josh Hlookoff (centre) and Jaylen Dekteroff at Hutton Elementary’s Pink Shirt Day parade. Photo: Laurie Tritschler
WATCH — Grand Forks’ elementaries support Pink Shirt Day

The annual celebration of kindness puts paid to the idea that bullying was ever cool

Montreal Canadiens right wing Paul Byron (41) fights for control of the puck with Vancouver Canucks defenceman Quinn Hughes (43) during first period NHL action in Vancouver, Monday, March 8, 2021. THE CANADIAN PRESS/Jonathan Hayward
Captain Clutch: Horvat nets shootout winner as Canucks edge Habs 2-1

Vancouver, Montreal tangle again on Wednesday

A special committee has been appointed to look at reforming B.C.’s police act and is inviting the public to make submissions until April 30, 2021. (Black Press media file)
Have thoughts on B.C.’s review of the provincial Police Act?

Submissions will be accepted until April 30

Cottonwoods Care Home in Kelowna. (Google Maps)
New COVID-19 outbreak at Kelowna care home includes fully vaccinated seniors: Henry

Two staff and 10 residents tested positive at Cottonwoods Care Centre

Excerpts from a conversation between Bria Fisher and the fake truLOCAL job. Fisher had signed a job agreement and was prepared to start work for what she thought was truLOCAL before she learned it was a scam. (Contributed)
B.C. woman warning others after losing $3,000 in job scam

Bria Fisher was hired by what she thought was a Canadian company, only to be out thousands

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix provide a regular update on the COVID-19 situation, B.C. legislature, March 2, 2020. (B.C. government)
B.C.’s COVID-19 cases: 545 Saturday, 532 Sunday, 385 Monday

Focus on Prince Rupert, Lower Mainland large workplaces

Rising accident rates and payout costs have contributed to billion-dollar deficits at ICBC. (Comox Valley Record)
B.C. appealing decision keeping ICBC injury cases in court

David Eby vows to ‘clip wings’ of personal injury lawyers

(Black Press Media files)
Hosts charged, attendees facing COVID fines after Vancouver police bust party at condo

Police had previously received 10 complaints about that condo

Most Read