Ottawa's apartment vacancy rate falls in 2022, report says
A surge in demand, including the return of students to university and college campuses, tightened Ottawa's rental market in 2022 and returned vacancy rates to pre-pandemic levels, a new report says.
The latest rental market report by Canada Mortgage and Housing Corporation shows Ottawa's vacancy rate fell to 2.1 per cent in 2022, from 3.4 per cent in 2021.
"Strong demographic and economic conditions supported rental demand and as a result, the vacancy rate dropped," CMHC said in its report. "The greatest declines occurred in central neighbourhoods, partly because of the return of post-secondary students."
CMHC says the vacancy rate drop was most apparent in central neighbourhoods near university campuses. The vacancy rate in the Sandy Hill/Lowertown area dropped to 2.1 per cent last year from 5.3 per cent in 2021, while the vacancy rates were 1.3 per cent in the downtown area and 0.7 per cent in the Glebe/Old Ottawa South area.
Other factors also supported demand for rental units, according to CMHC, including employment rates among youth aged 15 to 24 increasing, more people moving to the city permanently and rising prices and mortgage rates slowing the transition to homeownership for some renter households.
The report also notes a higher number of residents aged 25 to 44 were renting a place to live in 2022 – with 46 per cent of households in that age group renting instead of owning.
CMHC says while a considerable number of units were added to the rental stock, it's not enough to meet the demand.
"In addition, commercial buildings are being converted into rental housing projects, particularly in the downtown area," CMHC said.
"The significant drop in the vacancy rate shows that these additions were not enough to meet growing demand."
CMHC says the vacancy rates for apartments below $1,200 a month range between 1.2 and 1.5 per cent, while the vacancy rate for apartments over $1,350 is 2.6 per cent.
Rents increase in 2022
The cost to rent a two-bedroom apartment for new tenants in Ottawa increased 17 per cent last year.
CMHC says the average rent for a two-bedroom apartment that did turn over to a new tenant was $1,831. The average rent for a two bedroom apartment for the same tenant was $1,520.
The report shows the same-sample average rent for a two-bedroom apartment in Ottawa rose 4.8 per cent, with an average rent of $1,625.
Gatineau's vacancy rate below one per cent
Gatineau's vacancy rate is sitting at 0.8 per cent, as an increase in supply was offset by a higher demand for rental units.
CMHC says interprovincial migration increased in Gatineau last year.
The average rent for a two-bedroom apartments rose by 9.1 per cent last year.
Kingston vacancy rate
The city of Kingston has one of the lowest vacancy rates in Ontario, at 1.2 per cent.
"The vacancy rate stabilized because rental demand kept pace with supply growth in 2022," CMHC said.
CTVNews.ca Top Stories
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.