Renters looking for a new apartment in Victoria appear to have their work cut out for them.
Apartment vacancies have fallen by more than half despite a number of new buildings being built in the last year, according to a new report.
The city’s rental vacancy rate fell sharply – from 2.7 per cent in spring 2014 to 1.2 per cent in 2015 – hinting that supply isn’t keeping up with demand in B.C.’s capital.
Despite adding 245 new units of rental housing, the vacancy rate for one-bedroom suites dropped to 1 per cent from 2.7, two-bedroom apartments fell to 1.5 per cent from 2.8 per cent and bachelor suites had the slightest drop, falling to 1.5 per cent from 1.7 per cent.
The Canadian Mortgage and Housing Corporation, which released the report, remarked that the lower rates reflect “strong rental demand across the range of bedroom types.”
The lower rates are likely the result of increased migration into the city coupled with a relatively small number of private apartments being built, according to the report.
The average price of a one-bedroom apartment in the city increased by about $20 up to $856, while the provincial average reached $973.
Meanwhile, vacancy rates across Vancouver Island were mostly down.
Campbell River experienced the sharpest drop: the total vacancy rate there dropped from 6.7 per cent in 2014 to 2.7 per cent in 2015.
Courtenay’s rate mirrored Victoria’s, falling from 2.8 per cent to 1.2 per cent, while Nanaimo dropped 2.2 percentage points to 2.9 per cent vacancy.
For the full report, go to CMHC’s website.
