OTTAWA, June 12, 2018 /CNW/ - The vacancy rate for seniors' residences trended lower over the past year in Ontario and British Columbia (BC), while increasing in Québec according to the regional Seniors' Housing Reports released today by Canada Mortgage and Housing Corporation (CMHC).
The reports give descriptions and analysis of seniors' housing markets in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Atlantic Canada. This release provides highlights for Quebec, Ontario and British Columbia where seniors' residences are most prominent.
The survey looks at two types of spaces: standard and non-standard. Standard spaces, also referred to as independent living, are those occupied by a resident paying market rent and who does not receive 1.5 or more hours of care per day. Residents living in a non-standard space receive at least 1.5 hours of care per day. Respite and non-market spaces are also non-standard.
Highlights
Québec:
- The vacancy rate for standard spaces stood at 6.9%, compared to 6.2% at the same time last year.
- Market trends and conditions varied significantly across the province because of differences in the recent supply and the popularity of this type of housing. Such disparities are present within some geographies as well. For example, within the Montréal CMA, market conditions vary, with the vacancy rate ranging from 2.7% in Laval to 10.5% in the downtown core.
- The average rent for standard spaces in Québec was $1,729 per month.
- The vacancy rate for heavy care spaces decreased to 4.2% while average rent remained stable at $3,180. Residents living in heavy care spaces pay an extra amount to receive 1.5 hours or more of care per day. Examples of conditions that could require high-level care include Alzheimer's, dementia and reduced mobility.
Ontario:
- The overall vacancy rate for seniors' residences declined to a record low of 9.9% in 2018 from 10.3% in 2017.
- Total supply of seniors' housing grew by 3,500 spaces, the most since 2001.
- The average rent for a standard space increased by 2.6% to $3,618.
- 59,351 seniors, equivalent to 5.5% of the total population aged 75 years and over in Ontario, lived in the 721 residences in the province.
- The average rent for a bachelor space, the most popular unit type in Ontario, was $3,037. The Greater Toronto Area, with rent of $3,535 for a bachelor space, was the most expensive market, followed by Ottawa with $3,306.
British Columbia:
- The overall vacancy rate for independent living in seniors' residences across BC was 3.0% in 2018, compared with 4.5% in 2017.
- The number of total spaces saw a modest increase of 340 units over the previous year, with approximately half of the new spaces located in the South Fraser area.
- Demand for seniors' housing is expected to persistently increase for the foreseeable future due to aging demographics. Cumulative year over year house price increases across much of BC will support seniors' ability to pay for expensive private independent and heavy care spaces.
- Rising demand and operating costs increased the monthly rents for independent living spaces in the province by 3.3% compared with the previous year.
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.
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Quotes
"The rise of the provincial vacancy rate is mainly attributable to the changes in the Montréal and Québec CMAs, where we saw notable increases. Again, this year there are significant differences across the province with respect to either the state of the market, its direction, supply and the popularity of this type of housing." — Kevin Hughes, Regional Economist, Quebec, Canada Mortgage and Housing Corporation
"Even with the largest increase in supply this year, the vacancy rate trended lower as demand outpaced supply. The accelerating growth in the older population and the increasing acceptance of seniors' housing living, especially among seniors aged 85 and older, continued to drive demand for seniors housing." — Penny Wu, Senior Market Analyst, Ontario, Canada Mortgage and Housing Corporation
"British Columbia's vacancy rate for independent living spaces for seniors declined again in 2018. A growing seniors' population continues to drive demand for seniors' housing. Price increases in the resale market over the past few years in many regions has supported some seniors' ability to move into independent and heavy care spaces." — Keith Stewart, Senior Market Analyst, British Columbia, Canada Mortgage and Housing Corporation
SOURCE Canada Mortgage and Housing Corporation
Angelina Ritacco, Media Relations, 416-218-3320, [email protected]
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