Canada, 17th June: According to recent report released by Canada Mortgage and Housing Corporation, there has been a downfall in rents in Alberta and a rise in apartment vacancy rates in the month of April this year.
The most significant hike in the vacancy rates has been witnessed in Grande Prairie. The report says that the vacancy rate touched a new high at 14 percent from the previous year’s rate of 8.5 percent.
As per the CMHC(Canada Mortgage and Housing Corporation) report, this Canadian province’s Grande Prairie locality has registered the biggest hike in vacancy rates and largest plunge in the rents of apartments.
The survey titled Spring Rental Market Survey by CMHC was released two days ago.
There has been a fall in the average rentals for two-bedroom apartments from $1,106 to $1,082 during the same period.
Meanwhile, in almost 35 major centers of Canada, there has been a hike in vacancy rates from 2.7 percent to 2.9 percent.
The reason for a noteworthy decline in the rentals and increase in vacancy rates of apartments is being attributed to more people exiting Alberta coupled with a low job market, the report suggests.
The current trend happens to be the most dramatic as well as the fastest to take place in Alberta, argues clients relations manager with Prime Property Management based in Grande Prairie, Mark Rousseau.
Also, stiff competitive condominium market together with rental constructions piled up the burden on vacancy rates in Alberta. And to strengthen the effect, a large number of people opted for home ownership due to lowest ever mortgage rates in the last year, a chief economist at CMHC, Bob Dugan added.
In fact, the trend of low rentals and high vacancy rates has been witnessed in several Canadian cities including Quebec, with a vacancy rate of 0.4 percent), followed by Regina with 0.8 percent, Winnipeg with a rate of 1.0 percent and St. John’s having a rate of 1.1 percent.
Meanwhile, Windsor registered a vacancy rate of 12.4 percent while both Abbotsford and Peterborough finished with vacancy rates of 6.6 percent each.
Vacancy rates in Calgary went up to 5.3 percent in April 2010 from 4.3 percent in the same month last year.