The Canada Mortgage and Housing Corporation has confirmed what many people painstakingly find homes for rent in Kingston – almost impossible to find rental homes in the city. According to CMHC, Kingston's vacancy rate was the lowest in Ontario for the second year in a row, and has reached a record low of 0.6%.
CMHC said that after significant tightening in rental market conditions in 2017, the vacancy rate in the Kingston region declined further to 0.6% from 0.7% last year, as demand for rental accommodation continued to increase more than supply. According to the CMHC report, the vacancy rate fell for the third consecutive year, reaching the lowest level since 1989.
Kingston has a relatively tight history of rental market conditions, said CMHC. The 10-year average vacancy rate sits at 1.6%, compared with 2.4% in Ontario. For the second year in a row, Kingston recorded the lowest vacancy rate among the 16 tracked metropolitan areas in Ontario. In fact, said, CMHC, the number of empty units will need to be increased almost three times based on their 2018 number to bring the apartment vacancy rate back to a 10-year average of 1.6%.
CMHC also noted that as a result of the tightening market, average rental prices have increased 2.7% in Kingston over the past year, to an average of $ 1181 per month. Bachelor apartments have a vacancy rate of 1.2% and an average rental of $ 745, and one bedroom has a vacancy rate of 0.5% and is rented for an average of $ 1,008. Two bedrooms have a vacancy rate of 0.6% and an average rental of $ 1,200, while units with three or more bedrooms only have a vacancy rate of 0.1% and an average rental of $ 1,998.
CMHC said that among all the districts of the city, North Kingston (Rideau Heights, Grenville / Hillendale, Kingscourt and Strathcona Park) recorded the lowest vacancy rates. The vacancy rate in this district declined for the third consecutive year to an all-time low of 0.4% and the lowest among all sub-markets. Over the past three years, only 17 units or 7% of the total new additions have occurred in this special zone, said CMHC.