Real Estate

Canada’s apartment vacancy rate hits lowest level since 2002, squeezing renters

  • Last Updated:
  • Jan 17th, 2020 10:09 am
[OP]
Deal Fanatic
Feb 22, 2011
6529 posts
6516 upvotes
Toronto

Canada’s apartment vacancy rate hits lowest level since 2002, squeezing renters

The national vacancy rate for purpose-built apartments dropped to 2.2 per cent in 2019, from 2.4 per cent in 2018, according to an annual survey from Canada Mortgage and Housing Corp. The market is even tighter for condos, with the vacancy rate declining to 1 per cent in 2019 from 1.4 per cent in 2018.

The situation is particularly severe in major cities such as Toronto and Vancouver, where many residents are priced out of the ownership market, but must compete for a limited supply of suitable rental units.


https://www.theglobeandmail.com/busines ... al-market/
24 replies
[OP]
Deal Fanatic
Feb 22, 2011
6529 posts
6516 upvotes
Toronto
"In virtually every market, there was one constant: rising rents. In new and existing structures, the national average rent for a two-bedroom apartment increased 5.1 per cent last year to $1,077 a month."
Deal Addict
Jul 29, 2006
4013 posts
819 upvotes
don't worry - real estate crash is still coming guys. keep on waiting!!
Deal Expert
User avatar
Nov 15, 2004
18183 posts
3178 upvotes
Toronto
This is totally because of rent control, you guys. Sure it was repealed in 2018, but everyone knows rent control is the only reason rents ever go up and altruistic landlords are all eager to lower rent as much as possible when freed of its horrible tyranny.
Could HAVE, not could OF. What does 'could of' even mean?
Deal Addict
Dec 4, 2016
1750 posts
801 upvotes
Piro21 wrote: This is totally because of rent control, you guys. Sure it was repealed in 2018, but everyone knows rent control is the only reason rents ever go up and altruistic landlords are all eager to lower rent as much as possible when freed of its horrible tyranny.
Lol. BCNDP tightened rent control, and brought in a bunch of RE taxes. How's that working out for market rent?

What cheap rents? Destroy the economy. There's no other way.
Deal Expert
User avatar
Nov 15, 2004
18183 posts
3178 upvotes
Toronto
BlueSolstice wrote: Lol. BCNDP tightened rent control, and brought in a bunch of RE taxes. How's that working out for market rent?

What cheap rents? Destroy the economy. There's no other way.
It's almost like rent control doesn't actually drive up prices, and that rents are driven by external factors not related to it. That can't be the case though, since everybody knows different.
Could HAVE, not could OF. What does 'could of' even mean?
Deal Addict
Dec 4, 2016
1750 posts
801 upvotes
Piro21 wrote: It's almost like rent control doesn't actually drive up prices, and that rents are driven by external factors not related to it. That can't be the case though, since everybody knows different.
Rent control introduces friction into the rental market, and friction is eventually passed onto the end customer, once market has time to adjust. Same with forcing landlords to accept pets. When you drive away reasonable landlords, all you have left is slumlords.
Deal Expert
User avatar
Nov 15, 2004
18183 posts
3178 upvotes
Toronto
BlueSolstice wrote: Rent control introduces friction into the rental market, and friction is eventually passed onto the end customer, once market has time to adjust. Same with forcing landlords to accept pets. When you drive away reasonable landlords, all you have left is slumlords.
Can you tell me what incentive 'reasonable landlords' have to be reasonable when slumlords are all making 3x the money for being slumlords? If there's no legal standard keeping you from being a slumlord, and no financial incentive to keep you from being a slumlord, what does 100% of the landlord market end up consisting of?
Could HAVE, not could OF. What does 'could of' even mean?
Deal Addict
Dec 4, 2016
1750 posts
801 upvotes
Piro21 wrote: Can you tell me what incentive 'reasonable landlords' have to be reasonable when slumlords are all making 3x the money for being slumlords? If there's no legal standard keeping you from being a slumlord, and no financial incentive to keep you from being a slumlord, what does 100% of the landlord market end up consisting of?
Reasonable tenants prefer reasonable landlords, in a healthy market. Slumlords exist because reasonable landlords don't want to touch certain markets or certain properties. As a thought experiment: If the provincial government suddenly decides that rent payments are suddenly voluntary, allowing tenants to stay indefinitely without paying, as long as the tenants feel paying rent would cause undue hardship. What do you expect the private rental market to be like? Do market rent suddenly drop to $1, because vast majority of existing tenants are now paying zero?

Legal standards introduce friction. Some level of regulation are perhaps necessary to keep a market healthy, but frictions generally have a price. Wynne's rent control definitely went too far. It's like minimum wage -- $14/hr seemed to be somewhat absorbed by the labor market, partly due to relatively strong economy post oil crash. $100/hr minimum would wreck havoc in labor market, driving most private sector jobs underground.
Penalty Box
Dec 30, 2012
1098 posts
1139 upvotes
Toronto
BlueSolstice wrote: Lol. BCNDP tightened rent control, and brought in a bunch of RE taxes. How's that working out for market rent?
Rents stabilized and are now ticking down according to Padmapper. Vancouver 1-bdrm peaked a few years ago at $2200-2300. Now $100 less. Vacancy rate ticking up. It’s a start. One thing is for sure, recent condo investors in Vancouver are well underwater on monthly cash flow.

The BC Liberals spent 16 years doing their utmost to ruin the province and turn it into a vassal state for China. You expect the NDP to undo the damage in just a year or two? Come on.
Deal Expert
User avatar
Nov 15, 2004
18183 posts
3178 upvotes
Toronto
BlueSolstice wrote: Reasonable tenants prefer reasonable landlords, in a healthy market. Slumlords exist because reasonable landlords don't want to touch certain markets or certain properties. As a thought experiment: If the provincial government suddenly decides that rent payments are suddenly voluntary, allowing tenants to stay indefinitely without paying, as long as the tenants feel paying rent would cause undue hardship. What do you expect the private rental market to be like? Do market rent suddenly drop to $1, because vast majority of existing tenants are now paying zero?

Legal standards introduce friction. Some level of regulation are perhaps necessary to keep a market healthy, but frictions generally have a price. Wynne's rent control definitely went too far. It's like minimum wage -- $14/hr seemed to be somewhat absorbed by the labor market, partly due to relatively strong economy post oil crash. $100/hr minimum would wreck havoc in labor market, driving most private sector jobs underground.
Forget your hypothetical strawman arguments and let's just stick to facts: Where are working conditions better? Countries with minimum wages and employment standards? Or countries without those things? If a country with those things suddenly abolishes the requirement for them, does it stay the same or do conditions fall to the level of the countries without them?
Could HAVE, not could OF. What does 'could of' even mean?
Deal Addict
Dec 4, 2016
1750 posts
801 upvotes
civiclease wrote: Rents stabilized and are now ticking down according to Padmapper. Vancouver 1-bdrm peaked a few years ago at $2200-2300. Now $100 less. Vacancy rate ticking up. It’s a start. One thing is for sure, recent condo investors in Vancouver are well underwater on monthly cash flow.

The BC Liberals spent 16 years doing their utmost to ruin the province and turn it into a vassal state for China. You expect the NDP to undo the damage in just a year or two? Come on.
I would argue that rent stabilization is due to a surge of condo completions, and the construction of these condos were mostly started during BC Liberal's time. Investors funded these condos due to their confidence in BC Liberal's reasonable economic policy. Maybe even if Christy Clark has stayed premier of BC for another term, rent would have stabilized or come down slightly? Private market provided the solution to high rents -- more condos. The solution just takes time to come to market. Just like fracking was a solution to high oil prices.

With the relatively sane economic policy of BCNDP so far, I remain bullish on Vancouver RE as well as long term Vancouver rents. Eventually the current GreeNDP would be kicked out of office, if for nothing other than being in office for too long, and a center right party will return to power. Already some of the non-fiscal policies introduced by NDP's municipal wing was unpopular. They could very well lose power due to issues not related to the economy or housing.
[OP]
Deal Fanatic
Feb 22, 2011
6529 posts
6516 upvotes
Toronto
Piro21 wrote: This is totally because of rent control, you guys. Sure it was repealed in 2018, but everyone knows rent control is the only reason rents ever go up and altruistic landlords are all eager to lower rent as much as possible when freed of its horrible tyranny.
The article states Toronto improved, unlike other places
Deal Addict
Aug 12, 2004
4299 posts
1861 upvotes
Calgary
mazerbeaner wrote: The article states Toronto improved, unlike other places
Do you honestly think that someone so bitter about renting would bother to read an article that doesn't headline their wish for free rent / crashing housing prices?

Top