Good news for rental property owners from Canada Mortgage and Housing Corp. today.
CMHC reports that on-island rental market remains stable with an overall vacancy rate of 2.7 per cent. That compares to 2.6 per cent a year ago.
Economic and demographic factors helped propel more people into home ownership over the course of the year but that didn't mean a loosening of the rental market. A relatively healthy job-creation picture for workers in the 15-24 age bracket meant more new households were formed in the Montreal area this year. That trend smacked up against a slowdown in rental construction. There were only 2,721 rental starts (foundations poured) in 2010. That compared to 3,672 last year.
According to Bertrand Recher, the CMHC economist who wrote the report, the rental market was tightest in central Montreal neighborhoods like the Plateau, Rosemont, Villeray, Verdun and central Ville Marie. In those areas, the real vacancy rate was closer to 2 per cent.
The vacancy rate is lowest in apartments with three or more bedrooms, 2.1 per cent. The rate for apartments with 2 bedrooms is 2.3 per cent. For bachelor apartments and one-bedrooms, the vacancy rate is 3.8 per cent and 3.1 per cent respectively.
CMHC promises to send out a zone-by-zone breakdown of vacancy rates and average rents later in the day.