[homeles_ot-l] In Ottawa FW: Latest CMHC figures confirm low, moderate-income households continue to be priced out of Canada's private rental markets

Wed Jun 16 13:24:14 EDT 2010

Hello all, 

Families and individuals looking for affordable rental accommodation have
not fared well in Ottawa's rental market this spring according to Canada
Mortgage and Housing Corporation (CMHC) -

*         Ottawa's vacancy rate went down to 2.4% from 2.7% although there
was a slight improvement in availability up to 5.1% from 4.8%. 

*         Rent for bachelors went from an average of $669 to $688; one
bedrooms from $817 to $873; the average rent for two bedrooms increased from
$995 to $1,061; and three bedrooms jumped from $1,213 to $1,252.

Michael Shapcott provides a national picture below.

Lynne Browne

Coordinator, Alliance to End Homelessness (ATEH)

147 Besserer St., 2nd Floor, Ottawa, ON K1N 6A7

Cell 613-513-6647

Office 613-241-7913, ext. 205

www.endhomelessnessottawa.ca <http://www.endhomelessnessottawa.ca/> 

  _____  

From: nhhn-can-owner at povnet.org [mailto:nhhn-can-owner at povnet.org] On Behalf
Of Michael Shapcott
Sent: June 15, 2010 11:26 AM
To: nhhn-can at povnet.org; hhno-on at pov.net
Subject: [nhhn-can] WI backgrounder: Latest CMHC figures confirm low,
moderate-income households continue to be priced out of Canada's private
rental markets

Low and moderate-income households continue to be priced out of Canada's
private rental markets as average rents continue their relentless two-decade
rise many times faster than renter household incomes, according to the
latest figures released today by Canada Mortgage and Housing Corporation
(CMHC), Canada's national housing agency. Research from the Wellesley
Institute and others draws a clear set of links between good quality,
affordable housing and good health. 

Private rental vacancy rates (the number of vacant rental units) have risen
slightly in Canada, and rents have increased at the same time - defying
conventional economic theory that says that increased supply should lead to
lower costs in the private rental housing market. The latest private
<http://www.cmhc-schl.gc.ca/odpub/esub/64667/64667_2010_B01.pdf>  rental
market survey from CMHC paints a mixed picture of the country's private
rental markets, which provide a home to 3.8 million of Canada's 12.4 million
households. 

Nationally, the rental vacancy rate in Canada's largest communities (where
most of the rental housing is located) is at 2.9% - below the 3% level that
is considered the minimum for a healthy private rental market. The national
<http://www.cmhc-schl.gc.ca/en/corp/about/cahoob/data/index.cfm>  rental
vacancy rate edged up fractionally over the past year, but it has remained
below 3% since 1999.

While conventional economic theory suggests that an increase in the rental
vacancy rate - which signals more vacant units in the private rental markets
- should trigger a drop in rents as landlords compete for tenants, the
latest CMHC report shows that rents grew by 1.8% in the past year.

Nationally, rents
<http://www.cmhc-schl.gc.ca/en/corp/about/cahoob/data/index.cfm>  have
increased every year since 1992 - an increase of almost 42% over 18 years.
CMHC reports that over a similar period (from 1990 to 2007), renter median
household incomes have been mostly stagnant - moving from $30,800 in 1990 to
$31,500 in 2007.

Rapidly rising rents set against mostly stagnant renter household incomes
help to explain why there has been a slight increase in the number of vacant
private rental units while, at the same time, waiting lists for affordable
housing across the country continue to report a strong and growing need for
new affordable homes.

The Ontario
<http://www.onpha.on.ca/AM/Template.cfm?Section=Waiting_Lists_2010&Template=
/CM/ContentDisplay.cfm&ContentID=7546>  Non-Profit Housing Association
reported in May that there are an additional 12,382 households on local
waiting lists across the province for a total of 141,635 households - an
increase of 9.6% in one-year. The latest CMHC numbers report an increase in
Ontario's private rental vacancy rate from 3.3% to 3.4%. So, vacancies are
up slightly in the province's private rental markets at the same time that
waiting lists have zoomed up much higher.

The CMHC reports that private market rents rose by 3% over the past year to
an average of $978, suggesting that private rental markets are increasingly
out of reach for low and moderate-income renter households.

Across the country, the CMHC reports a mixed picture. Vacancy rates dropped
by almost half in Newfoundland and Labrador to a critically low 1.1%; and
also fell in Prince Edward Island and Nova Scotia. The rental rate remained
the same in New Brunswick and increased slightly in Quebec and Manitoba. The
rental vacancy rate rose more significantly in Canada's three western-most
provinces of Saskatchewan, Alberta and British Columbia.

Alberta and BC defied the national trend and reported decreases in average
market rents, although Alberta leads the league in the highest rents at a
provincial level ($1,023).

Nineteen of Canada's major metropolitan areas had rental vacancy rates in
the crisis zone below 3%, while 17 municipalities reported rates above 3%.
Winnipeg has the lowest rental vacancy rate at 1%, while St John's NL is
close behind at 1.1%. Windsor has the highest rate at 12.4%.

Vancouver reported the highest average market rents at $1,150, and Toronto
was close behind at $1,134. Ottawa and Calgary also had rents above $1,000,
while Victoria, Saskatoon and Oshawa all reported average rents in the $900+
range. Saguenay reported the lowest average rent at $522.

Comparing year-over-year increases, Regina topped the national league tables
with an annual rent increase of a whopping 7.1%, followed by a 5.3% increase
in Saskatoon. St John's NL reported an annual increase of 5%, with Victoria
reporting a 4.9% rise and Winnipeg up 4.6%. Calgary and Edmonton both
reported decreases in average market rents (6.4% and 2.9% respectively),
although average rents in those cities remain very high relative to renter
household incomes.

-          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:   michael at wellesleyinstitute.com

www.wellesleyinstitute.com

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

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