NATIONAL OUTLOOK Vacancies up in most centres across Canada
According to CMHC, the average rental vacancy rate in major centres across Canada increased from 2.0% in October 2019 to 3.2% in October 2020. According to CFAA’s members and CMHC, vacancy rates generally increased in the city centres and university towns, while staying flat or rising less in suburbs and in smaller centres which do not serve universities or colleges. See tables 1 and 2.
Table 1: Vacancy rates in Toronto Toronto
Toronto suburbs
CMA City Central area Mississauga Richmond Hill Pickering/Ajax
Oct 2019
Oct 2020
1.5% 1.5% 2.9% 1.2% 1.2% 2.4%
3.4% 3.7% 7.3% 2.4% 2.0% 1.7%
Oct 2019
Oct 2020
1.1% 1.0% 1.3% 0.5% 1.2% 0.6%
2.6% 2.8% 6.3% 1.9% 1.6% 1.4%
Table 2: Vacancy rates in Vancouver Vancouver
Vancouver suburbs
CMA City Central area Richmond New Westminster Surrey
Despite the increase in vacancy rates due to COVID-19, there remains an underlying shortage of rental housing, especially in Greater Toronto and Greater Vancouver. Bob Dugan, Chief Economist, CMHC, says, “The vacancy rate for purpose-built rental apartments in Canada’s CMAs increased in 2020. The economic impact of the pandemic has significantly reduced rental demand. Lower international migration, fewer student renters and weaker employment conditions led to weaker inflows of new renters. While vacancy rates increased in many centres, we continue to see a need for more rental supply to ensure access to affordable housing.”
October 2020 vacancy rates in leading centres In Eastern Canada, St. John’s (7.5%), Charlottetown (2.7%), Moncton (2.8%) and Halifax (1.9%) saw their vacancy rate increase, while the rate remained stable in Saint John (3.1%). In the Province of Quebec, Montréal’s vacancy rate increased to 2.7%, while Quebec City’s rate sat at 2.7%. In Ontario, vacancy rates increased in Thunder Bay (4.1%), Ottawa (3.9%), Windsor (3.6%), Toronto (3.4%), London (3.4%), Kingston (3.2%), St. Catharines-Niagara (2.7%), Peterborough (2.6%) and Greater Sudbury (2.5%). In Belleville (3.0%), Oshawa (2.3%), Brantford (2.2%), Guelph (2.2%), and Kitchener-Cambridge-Waterloo (2.1%), vacancy rates were little changed. Vacancy rates decreased in Hamilton (3.5%) and Barrie (2.1%).
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