Saskatoon leads country in apartment vacancy rate: CMHC

Saskatoon has the highest apartment vacancy rate in the country, according to a new report from Canada Mortgage and Housing Corporation (CMHC).

According to the Rental Market Report for the Saskatoon CMA out Monday, the overall vacancy rate was 10.3 per cent in October, up from 6.5 per cent in October 2015.

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The federal agency said it is the third consecutive year the vacancy rate increased in the city and is now at a record high since the market survey started in 1988.

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CMHC attributed the increase to a rise in supply coupled with a decline in employment.

The agency also said that for the first time on record, same-sample rent for a two-bedroom apartment decreased, down 0.9 per cent from October 2015.

Same-sample rent compares year-over-year average rents common to both 2015 and 2016 and does not take into account newly constructed buildings.

The average rent for a two-bedroom apartment in buildings with at least three units, including new buildings, was $1,100.

READ MORE: Saskatoon housing market shows strong signs of overbuilding: CMHC

There was also a marked increase in the number of rental condo units.

CMHC said the vacancy rate went from 1.5 per cent in the fall of 2015 to 3.1 per cent in fall 2016.

The agency said while the condo vacancy rate increased, demand for rental units has been supported by people looking for higher-end fixtures and amenities typically found in the condominium market.

The report also noted an increase in investor-owned and rented condos, from 20.7 per cent in October 2015 to 22.9 per cent last month.