[homeles_ot-l] Ottawa #s RE: Vacancy rates are up, and so are the rents!

Lynne Browne lbrowne at ysb.on.ca
Wed Jun 10 15:47:53 EDT 2009


Ottawa rents:

 

This April, a low or moderate income family requiring a two bedroom
apartment needed $38 more in income to pay Ottawa’s average rent. 

For a three bedroom unit, people needed $98 dollars more!

 

In Ottawa, rents went up 4% on average between April 2008 and 2009. The
local vacancy rate went from 2.2 to 2.7% but that won’t help pay higher
rents. 

 


Average Apt. Rents In Ottawa 
April 2009 CMHC Rental Market Survey*


Apartment unit size

Average apt. rent 
April 2008

Average apt. rent 
April 2009

# Vacant private apartments 
April 2009

Total # apartments in Ottawa is 60,841


Bachelor

666

669

143

5.940


One bedroom

819

817

764

30,383


Two Bedroom

957

995

633

22,178


Three bedroom

1,116

1,213

Data not available

2,339


 

* HYPERLINK
"http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-06-10-0815.cfm"http:
//www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-06-10-0815.cfm

 

 

Lynne Browne

Coordinator, Alliance to End Homelessness (ATEH)

147 Besserer St., Ottawa, ON K1N 6A7

613-241-7913, ext. 205

HYPERLINK "http://www.endhomelessnessottawa.ca/"www.endhomelessnessottawa.ca

   _____  

From: homeles_ot-l-bounces at list.web.net
[mailto:homeles_ot-l-bounces at list.web.net] On Behalf Of Rob MacDonald
Sent: June 10, 2009 3:35 PM
To: homeles_ot-l at list.web.net
Subject: [homeles_ot-l] Vacancy rates are up, and so are the rents!

 

CMHC released it's semi-annual report on rents and vacancy rates.  Although
the vacancy rate has risen slightly to 2.7%, the rents have also risen
almost 4%.

Info below. from Michael Shapcott

Rob

An increasing number of Canadians are being priced out of private rental
housing. The latest HYPERLINK
"http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-06-10-0815.cfm"
\nsurvey of the private rental market by Canada Mortgage and Housing
Corporation (released this morning) shows that nation-wide, the private
market rental vacancy rate edged up slightly. While some argue that an
increase in vacancies means more choice for renters, and puts pressure on
landlords to offer more affordable rents, the same survey shows that average
private market rents jumped 2.7% in the past year – more than seven times
faster than the rate of inflation. The tiny increase in the number of vacant
private rental units provides cold comfort to the hundreds of thousands of
Canadians on affordable housing waiting lists (facing a wait of 15 years or
more in some communities) since they simply cannot afford the rents that
private landlords are charging.  The latest numbers underline the danger of
relying on vacancy rates in the private rental market as a reliable
indicator of healthy and affordable housing choices for Canadians.

Renter household incomes have been largely stagnant, or declining, in the
past two decades, which means more renters are being squeezed financially
and, some are being squeezed right out of the private rental market. From
1992 to 2006, the average private market rent jumped 33% to $755 nationally,
according to CMHC (faster than the rate of inflation). Over that same time,
the median renter household income was basically stagnant at $29,700. Using
the standard affordability calculation, those households could afford to pay
$743 monthly. For low and moderate income renter households, well below the
median, the steady upward climb in private market rents means less money for
other necessities, such as food, medicine, transportation, child care and
clothing. Many face economic eviction as they cannot pay the rent bill.

>From 2006 to 2009,  rents have increased almost 10% nationally - more than
double the rate of inflation, according to the Bank of Canada. Renters are
falling farther behind on the key measure that matters: the cost of housing.
A slight uptick in the number of vacant units doesn't mean much when the
rent for those units is financially out of reach. Policy-makers might be
tempted to view the slight increase in vacancies in the private rental
market as a sign that a new supply of affordable homes is not required, but
the numbers actually suggest that the existing private rental market is not
meeting the housing needs of low and moderate-income Canadians. Today's
numbers demonstrate that a comprehensive national housing plan that includes
both supply and affordability funding and programs, is urgently required. 

The detailed numbers from CMHC show that while the nation-wide rental
vacancy number edged up very slightly, the provinces were evenly split –
with five reporting an increase in rental vacancies in the private sector,
and five reporting a decrease. Major metropolitan areas also reported a
split picture on the vacancy side – 19 reported an increase in vacancies,
while 16 reported a drop. 

Across the board, however, at the national level, in every province and in
virtually every municipality, private market rents are up – even in those
that reported an increase in vacancy rates. For instance, in the Quebec side
of Ottawa-Gatineau, the private rental vacancy rate was cut in half –
falling from 4.2% to 2% and rents increased 2.4%. Across the river in the
Ontario side of Ottawa-Gatineau, the private rental vacancy rate rose to
2.7%, but rents increased almost 4%. Whether vacancy rates go up or down,
rents in the private rental market are inexorably rising, and more renter
households are struggling to pay their landlord.

The federal government’s Affordable Housing Initiative, which has recently
been extended for five years, uses private market rents as a benchmark to
determine affordability. In the past month, the federal government has
announced a HYPERLINK
"http://wellesleyinstitute.com/ontario-manitoba-latest-provinces-sign-bilate
ral-housing-deals-feds" \nnew round of bilateral housing deals with seven
provinces and the three territories (to date) that continue to use private
rents to determine affordability. Today’s CMHC numbers show that the private
rental market is increasingly inaccessible to low, moderate and
middle-income Canadians. 

-       Michael

 

***

 

Michael Shapcott | Director, Affordable Housing and Social Innovation |
Wellesley Institute 

45 Charles St E, Suite 101                    Tel: 416.972.1010 ext 231
Toronto, ON, Canada,  M4Y 1S2           Mobile: 416.605.8316  
E-mail:   HYPERLINK "http://aerin@wellesleyinstitute.com/"
\nmichael at wellesleyinstitute.com

 

HYPERLINK "http://www.wellesleyinstitute.com/" \nwww.wellesleyinstitute.com

rigorous research. pragmatic policy solutions. social innovation. community
action.

 



-- 
Rob MacDonald,

"Warriors, warriors we call ourselves.  We fight for 
splendid virtue, for high endeavour, for sublime wisdom, 
therefore we call ourselves warriors."
Aunguttara Nikaya 

-- 
Rob MacDonald,

"Warriors, warriors we call ourselves.  We fight for 
splendid virtue, for high endeavour, for sublime wisdom, 
therefore we call ourselves warriors."
Aunguttara Nikaya 

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