According to the Canada Mortgage and Housing Corporation, the number of available Ottawa apartments for rent increased in 2012. Vacancy rates rose 1.1 per cent when compared to 2011, landing at 2.5 per cent at years end.
The reason for the increase in apartment rental vacancies is because less people are looking to rent apartments in the city. With the low interest rates and the increase in condominiums being raised in Ottawa, people are taking advantage and investing their money in owning a home or condo.
The average cost of renting a two-bedroom apartment also rose two per cent, which may have also contributed to increasing vacancy rates in 2012. This increase in rent however, was actually lower than the 2.3 per cent increase in the previous year.
Ottawa Rent Vacancy Rates Remain Stronger Than Average
Despite the increase in apartment rental vacancy rates, Ottawa remains below the average of Canada’s major metropolitan areas. Ottawa continues to have one of the lower vacancy rates in the country. These numbers are expected to get even better as the CMHC does not expect the vacancy rates to continue to rise in 2013. Instead, they are predicting the number to drop to two per cent as Ottawa residential home prices are expected to rise. Because of this people will be less willing to buy and may move towards renting. Couple the increase in home prices with the new rules for mortgages in Ottawa, and owning your own home may actually become an impossible option for many first time home owners.
The lower vacancy rates that are predicted will be closer to the 1.4 per cent rate that was seen in 2010. If you are in the market for a home or an apartment in Ottawa, low rates will mean you will have a harder time finding that one apartment for rent that seems a perfect fit for you. Start looking early and often.