Greater Toronto Area vacancy rates

According to the Rental Market Survey conducted by Canada Mortgage and Housing Corporation (CMHC), GTA vacancy rates for purpose-built private apartments was 1.6 per cent, unchanged from 2012.

Notable Causes for the GTA's Low Vacancy

A number of factors have contributed to GTA's low vacancy rate. Firstly, there was a significant increase in demand in 2013, especially by those in the 15-24 age bracket. The average level of employment for this group was up 10.3 per cent, providing youth with the means to move out on their own.

Another notable factor are the tendencies of baby boomers. Renters who fall within the 45-74 age bracket tend to continue to rent. As the largest and fastest growing part of GTA’s population, this has an affect on the number of available units.

Additionally, less renters entered the ownership market due to high housing costs, lessening the number of vacant units in 2013.

Vacancy Rates vary by area:

Although GTA’s vacancy rate remained stagnant year over year, the report notes a number of significant changes in several parts of the GTA. Central Toronto, which is the largest submarket for rentals in the GTA, experienced an increase in vacancy for all apartment types due to dwindling demand. The increasing vacancy rate in central Toronto is inextricably tied to the increase in rental rates; as costs continue to rise, people opt to live elsewhere in the GTA.

Toronto suburb, Etobicoke, experience a a decrease in supply and an increase in demand due to the tightening market for two-bedroom apartments.

Mississauga and Brampton, on the other hand, experienced a decrease in demand. As a result, their vacancy rates increased to 2.3 per cent, the highest in the GTA.

Read the full study here.

Where does the GTA stand?

Toronto is on par to some of the major centres across Canada. Vancouver and Edmonton's vacancy rates rates are 1.7 per cent and 1.4 per cent respectively, while Calgary has the lowest vacancy rate of one per cent. Ottawa, Winnipeg and Montreal have higher rates of 2.9 per cent, 2.5 per cent and 2.8 respectively.