Highlights
• The innocupancy rate fell to 1.8 per cent in October 2008, for a decrease of 0.5 of a percentage point from the level recorded at the same time in 2007.
• The vacancy averages registered particularly large reductions for the units with the highest rents ($900 or over) and for larger apartments (with three or more bedrooms).
• The predicted change in rents charged in existing structures reached 2.1 per cent between October 2007 and October 2008.
Vacancy average falls in 2008
Based on data reported by the rental market survey conducted by the CMHC in October 2008, the vacancy rate in the Cote des Neiges and Notre-Dame de Grace areas feel from the level registered at the same time in 2007. The percentage of unoccupied apartments in privately owned buildings with three or more units reached 1.8% this past October, compared to 2.3% at the same time in 2007. While this was the first decrease in vacancy rates since 2001, current levels remain well above the level recorded for that year (0.6% for 2001)
The strong increase in net migration observed between 2006 and 2007 contributes to this decrease in vacancy rates. Most were immigrants, and these households tend to favor renting when they arrive, before moving on to ownership a few years later.
The growth in employment among people aged under 25 years was another factor that contributed to bringing down the vacancy rate. Youth employment rose by 4.1 per cent from October 2007 to October 2008. This growth in employment-and therefore in income-prompted a larger proportion of young people to rent apartments, as they now had the financial means to do so.
Moderate rise in average rent
Here are the averages rents, by bedroom type, that Cote des Neiges and NDG tenants had to pay for 2008. It should be noted that rental rates may or may not include utilities, such as heating and electricity. This data provides a good approximation of the average rent charged on the market.
With the rising vacancy rates in recent years and the strong homeownership trend, many landlords likely decided to limit their rent augmentation in order to retain their tenants.
Cote Des Neiges(CDN) average rent for 2008
Bachelor: 499
1 bedroom: 662
2 bedroom: 792
3 bedroom+: 975
Notre-Dame de Grace(NDG) average rent for 2008
Bachelor: 514
1 bedroom: 680
2 bedroom: 839
3 bedroom+: 1028
Vacancy rate for 2009
Given the economic uncertainty and anticipated stable employment level in the Montréal area, the traditional rental market may tighten again rather than ease. On the other hand, the growing availability of properties on the market could prompt some households to access homeownership, which would instead favour an increase in the vacancy rate.
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