Vacancy Rates Lower Throughout Newfoundland



    ST. JOHN'S, June 10 /CNW/ - The results of the April rental market
survey(1) released today by Canada Mortgage and Housing Corporation (CMHC),
indicated that vacancy rates for private apartment structures containing three
or more units were lower throughout the province in all centres surveyed. The
combined total vacancy rate was 2.0 per cent, with 106 of the 5,285 units
surveyed sitting vacant. This represents a reduction of 1.2 percentage points
from last April's rate of 3.2 per cent.
    The St. John's area rental market posted a vacancy rate of 2.2 per cent
compared to 3.7 per cent last April, with 80 units vacant out of the 3,668
units surveyed. "With the local labour market remaining healthy, positive
net-migration will continue to create rental demand and keep vacancy rates low
within the region," said Chris Janes, senior market analyst with CMHC in
Newfoundland and Labrador. "Historically, high house prices coupled with low
levels of new rental supply being added to the market are contributing to the
low vacancy rates. With house prices continuing to advance, demand for rental
is expected to remain strong," added Janes.
    The tightest rental market in the province was the Corner Brook area with
a 0.4 per cent vacancy rate recorded during the April survey. Other centres
surveyed recorded the following vacancy rates: the Gander area decreased to
2.3 per cent from 2.5 per cent last year, the Grand Falls-Windsor area came in
at 1.3 per cent compared to 3.6 per cent a year ago, and the Bay Roberts area
recorded a vacancy rate of 7.7 per cent.
    As Canada's national housing agency, CMHC draws on more than 60 years of
experience to help Canadians access a variety of quality, environmentally
sustainable, and affordable homes - homes that will continue to create vibrant
and healthy communities and cities across the country.

    
    ---------------------------------
    (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 2009 rental market survey and the October 2008
        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.


    (Ce document existe également en français)


    -------------------------------------------------------------------------
                        Vacancy Rate and Average Rent
                               by Major Centre
                          Newfoundland and Labrador
    -------------------------------------------------------------------------
    Centre                               Vacancy Rate          2 Bdrm Rent
                                    -----------------------------------------
                                       Apr-08    Apr-09    Apr-08    Apr-09
    -------------------------------------------------------------------------
    St. John's CMA                        3.7       2.2       614       652
    -------------------------------------------------------------------------
    Bay Roberts CA                         (xx)       7.7       464       484
    -------------------------------------------------------------------------
    Corner Brook CA                       0.6       0.4       516       522
    -------------------------------------------------------------------------
    Gander T                              2.5       2.3       504       524
    -------------------------------------------------------------------------
    Grand Falls-Windsor CA                3.6       1.3       565       623
    -------------------------------------------------------------------------
    Newfoundland & Labrador 10,000+       3.2       2.0       581       616
    -------------------------------------------------------------------------
    




For further information:

For further information: Chris Janes, Senior Market Analyst - NL, CMHC
Market Analysis Centre, (709) 772-2403 or (709) 743-4636, cjanes@cmhc.ca;
visit www.cmhc.ca or call 1-800-668-2642


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