Yellowknife Vacancy Rate Cut in Half

This morning the CMHC released its Spring 2015 Rental Market Statistics Report.  Amazingly, Yellowknife's rental apartment and townhouse vacancy rate was slashed from 5.3% a year ago to 2.4% this spring.  And the reduction would have been even greater had an additional 52 units not been added to the inventory. 

To get a sense of how surprising these numbers are one doesn't has to look too far.  Just a week ago CMHC released its Northern Housing Outlook Report, in which it predicted a decrease in the vacancy rate in 2015 to 3.5%.

All of this is good news for investment property owners and bad news for renters.  But does it mean we'll be making a return to our traditionally stingy vacancy rates?  There are currently more than 200 apartment condos under construction and/or pre-sales in our city, which could theoretically draw tenants out of 10% of the total rental universe.  We also have a couple of large rental apartment buildings sitting vacant while being renovated.  Granted, we did just lose one downtown apartment building to a fire over the weekend, but on the balance I would expect rental rates to relax between now and this time next year.

Vacancy Rates (%) in Privately Initiated Rental Row and Apartment Structures of Three Units and Over

Year

Vacancy Rate (%)

Total Units

1998

0.1

 

1999

0.1

 

2000

0

 

2001

0.1

 

2002

0.3

 

2003

1.8

 

2004

3.1

 

2005

3.4

 

2006

3.4

 

2007 - Spring 

2.8

     1,921 

2007 - Fall 

1.2

     1,946 

2008 - Spring 

0.6

     2,004 

2008 - Fall 

0.9

     2,005 

2009 - Spring 

2.9

     2,003 

2009 - Fall 

5.3

     2,138 

2010 - Spring 

1.3

     2,125 

2010 - Fall 

0.9

     2,120 

2011 - Spring 

0.7

     2,119 

2011 - Fall 

1.3

     2,103 

2012 - Spring

2.4

     2,110 

2012 - Fall

3.2

     2,121 

2013 - Spring

3.6

     not available

2013 - Fall

3.6

     2,080 

2014 - Spring

5.3

     1,928 

2014 - Fall

4.8

     1,943 

2015 - Spring

2.4

     1,980 

 

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