Ottawa’s overall rental vacancy rate in 2012 was 2.5 per cent, indicating a tight rental market that favours landlords.
The vacancy rate in 2012 increased from the previous year’s rate of 1.4 per cent. While Ottawa has seen a large number of new rental condo units come onto the market, Canada Mortgage and Housing (CMHC) said that net migration of many new people moving to Ottawa kept the vacancy rate low. CMHC senior market analyst Sandra Perez-Torres said that, “The capital city continues to have one of the lowest vacancy rates in the country.”
The average rent for a 2-bedroom apartment in Ottawa was $1,115 in 2012. Rents in Ottawa increased an average of 2 per cent from 2011 to 2012. This was well below the 3.1 per cent Ontario Rent Guideline for 2012.
“Low vacancy rates are good news for condominium investors,” says John King Realtor®. “In some of the new condo buildings we are seeing more than half of the units bought by investors who intend to rent them.”
CMHC reports that an average 2-bedroom condo rents for 15 per cent more than a 2-bedroom apartment in Ottawa.
The growing number of rental condos coming onto the market is beginning to push up vacancy rates. Ottawa had the highest vacancy rate in rental condos – 3.2 per cent – of the 11 largest urban centres in Canada. But CMHC predicts that this trend will reverse itself in 2013, with Ottawa vacancy rates overall falling back to 2 per cent.Tags: Investing, Ottawa Condo Market, Ottawa Realtor John King, The John King Team Ottawa
Categorised in: Investing
This post was written by Heather