While the vacancy rate for apartments in Saskatoon has declined, it stills remain elevated.
In a report released Monday, Colliers International said the vacancy rate is now approximately 13 per cent, down from the record 18 per cent recorded in the fourth quarter of 2016.
READ MORE: Saskatoon leads country in apartment vacancy rate: CMHC
The report said the decrease is due to a number of factors, including a decrease in monthly rent, an increase in incentives and a mild resurgence in the local economy.
Rental rates for a two-bedroom apartment in the city decreased for the first time in 27 years during 2016, with rates dropping about 14 per cent, or $150 monthly, for a two-bedroom unit.
Colliers said that while rental rates at some of the newer developments are at market value, owners of older or less competitive buildings have turned to incentives to entice tenants.
Some of those incentives include free rent periods, gift cards, or substantial cuts to rental rates.
READ MORE: Saskatoon home prices continue to soften
The report added that although the market remains historically weak for apartment rentals, there is little likelihood of further incentives being offered or rents being decreased.
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