The vacancy rate of the apartment units in London is still tight as ever and the same situation is observed all over the province. In fact, it has already reached its lowest level which surpasses the rate of 2011. This is not surprising as many people chose to have a long term apartment rentals in London because the rate is cheaper compared to buying.
Canada Mortgage and Housing Corp. conducted a survey back in October and they estimated that the vacancy rate of the census area of London including Strathroy and St. Thomas is at 1.8 per cent. This is lower compared to the vacancy rate of October last year at 2.1 per cent.
In comparison to the average vacancy rate of the province, London is still considered higher because the provinces’ vacancy rate is reduced to 1.6 per cent and this is the lowest number since the year 2000.
In the London area, the average cost of rent regardless of the type of rental units is also higher by 4 per cent. Last year it was an average of $918 and increased to $952.
The vacancy rate of the entire province declined because of the huge market in Toronto where it was found out that the vacancy rate is only at one per cent which is lower compared to last year when it was 1.3 per cent.
It was even a sadder story for Kingston because its vacancy rate is only a measly 0.7 per cent which declined from 2.6 per cent only last year.
For the market in London, this year has seen a lot of constructions of townhouses and apartments. It began at 1,597 units before October ended and the figure is a bit higher compared to last year’s when the record was almost broken by home construction level.
AmranWali, the analyst of CMHC, said that the number is still not enough. For the last 12 months, around 812 rental units entered the market which increased the supply by only 1.6 per cent. The city needs more because of the rise in long term apartment rentals in London leaving the vacancy rate even lower.