Vacancy Rates Comparable in Most Urban Centres



    MONCTON, NB, June 6 /CNW/ - In April(1), the overall vacancy rate for
apartment units in New Brunswick's urban centres stood at 6.0 per cent while
the average rent in the province was $579, according to figures released today
by Canada Mortgage and Housing Corporation (CMHC).
    "The vacancy rates in most of the province's urban centres were
relatively uniform" said Claude Gautreau, CMHC's Senior Market Analyst for
New Brunswick. The vacancy rate in the province's three large urban centres
varied between a high of 6.8 per cent in Fredericton and a low of 5.7 per cent
in Saint John. The vacancy rate in Moncton was close to the overall provincial
average at 6.1 per cent. "The resiliency of the new home and resale markets,
combined with attractive conditions for construction of new rental units have
lead to relatively higher vacancy rates in Fredericton and Moncton," continued
Gautreau.
    In most of New Brunswick's smaller urban areas, the vacancy rates were
similar to the province's larger centres, varying from a low of 6.1 per cent
in Bathurst to a high of 6.3 per cent in Edmundston. The vacancy rate in
Miramichi was the lowest in the province at 1.2 per cent.
    Due to continued in-migration in Fredericton and Moncton, the average
two-bedroom rent in both centres experienced upward pressure and surpassed the
provincial average of $610 at $693 and $631, respectively. In contrast, with
relatively flat in-migration, the average two-bedroom rent in Saint John was
below the provincial average at $568. Similarly, the average two-bedroom rent
in the province's smaller urban centres varied between $442 and $506.

    
    ----------------
    (1) CMHC's Rental Market Survey is now conducted twice a year in April and
October, to provide vacancy, availability and rent information on privately
initiated structures in all centres over 10,000 population across Canada.
Reports are released in June and December.

    The spring survey covers apartment and row structures containing at least
three rental units, and unlike the fall survey does not report information on:

    1. Smaller geographic zones within centres
    2. Secondary rental market (rented condominium apartments, single
       detached, semi-detached, duplexes or accessory apartments).

    In our analysis, we have avoided making comparisons between the results of
the April 2007 rental market survey and the October 2006 survey. A key reason
for this is that changes in rents, vacancy rates, and availability rates
between the spring and the fall may not be solely attributable to changes in
rental market conditions; they could also reflect seasonal factors. For
example, if more people tend to move in the spring than in the fall, it could
have an impact on vacancy and availability rates as well as the level of
rents. Alternatively, in centres where there are a significant number of
university students, vacancy and availability rates could be higher in the
spring if students move home for the summer.
    To the extent that these types of seasonal variations exist, comparing
results from the spring and fall Rental Market Surveys could lead to incorrect
conclusions about trends in rental market conditions. To avoid this, we have
limited our analysis to the results of our spring 2007 Rental Market Survey
and comparing these results for different centres across Canada. In spring
2008, when we have results from our second spring Rental Market Survey, we
will be able to extend our analysis to make year over year comparisons.

    Note: A table of vacancy rates, availability rates and rents is attached.

                                               (Aussi disponible en français)


      VACANCY RATES, AVAILABILITY RATES, AVERAGE RENTS FOR NEW AND EXISTING
    STRUCTURES IN PRIVATELY INITIATED APARTMENT STRUCTURES OF THREE UNITS AND
                            OVER IN MAJOR CENTRES

    -------------------------------------------------------------------------
                                         Vacancy  Availability  Average Rent
                                            Rate          Rate   Two-Bedroom
                                              (%)           (%)           ($)
                                      April 2007    April 2007    April 2007
    -------------------------------------------------------------------------
    New Brunswick                            6.0           6.7           610
    -------------------------------------------------------------------------
    Moncton CMA                              6.1           6.8           631
    Saint John CMA                           5.7           6.7           568
    Bathurst CA                              6.1           6.8           489
    Campbellton CA                           7.2           8.7           506
    Edmundston CA                            6.3           7.0           442
    Fredericton CA                           6.8           6.8           693
    Miramichi CA                             1.2           1.4           494
    





For further information:

For further information: Claude Gautreau, Senior Market Analyst - NB,
(506) 851-2742, cgautrea@cmhc.ca


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