Winnipeg's vacancy rate remains steady in 2014

The Canadian Mortgage and Housing Corp. (CMHC) recently released their latest rental market report, and according to their study Winnipeg's vacancy rate was 2.5 per cent in Oct. 2014, unchanged from Oct. 2013.

Many factors contributed to the stagnant vacancy rate. Firstly, there was a healthy balance of renters exiting the market to pursue homeownership, and at the time, an inflow of new renters were entering the rental market and thus filling the vacancies. Additionally, there was a large number of new migrants that came to Canada, most of whom settled in Winnipeg and opted to rent.

The core vs. The suburbs

Winnipeg's core area zones had a higher vacancy rate compared to their suburban counterparts. In the core area, The Centennial zone had the highest vacancy rate of 3.5 per cent. The area with the lowest vacancy in Winnipeg's core was Midland with a 2.1 per cent vacancy rate. The area within Winnipeg's core that experienced the most significant change from 2013 to 2014 was Fort Rouge. Due to a considerable amount of development over the past year, Fort Rouge's vacancy rate moved form 2.4 per cent to three per cent.

Meanwhile, the suburbs saw little change in vacancy rate with the exemption of Assinboine Park. With a vacancy rate of 2.8 per cent, Assinboine Park had the highest vacancy rate out of all of Winnipeg's suburban areas. While this area has the highest vacancy rate, it is important to note that Assinboine Park had the largest drop in vacancy rate year over year, decreasing from five per cent in 2013. On the other end of the spectrum is Transcona with a vacancy rate of zero, down from 1.8 per cent in the 2013. Fort Garry had the highest increase in vacancy rate, from 1.6 per cent in 2013 to 2.5 per cent in 2014.

The higher the cost, the higher the vacancy

Interestingly, buildings that were constructed between 1975 and 1989 had a vacancy rate of 2.2 per cent, the lowest in the Winnipeg CMA. On the other hand, rental structures built after 2005 had the highest vacancy rate at 3.5 per cent. The report noted that vacancy rates were inextricably tied to rental rates; the higher the cost, the higher the vacancy. CMHC found that that in apartments renting for more $1,300 per month, the vacancy rate was 5.8 per cent. Units renting under $500 per month had a vacancy rate of 2.6 per cent.