Rental Update for Thunder Bay

Rental rates for apartments in Thunder Bay remain at a 2.3% vacancy rate
Rental rates for apartments in Thunder Bay remain at a 2.3% vacancy rate

Rental rates for apartments in Thunder Bay remain at a 2.3% vacancy rate
Rental rates for apartments in Thunder Bay remain at a 2.3% vacancy rate

THUNDER BAY – REAL ESTATE – The rental apartment vacancy rate(1) in the Thunder Bay Census Metropolitan Area (CMA) remained relatively stable at 2.3 per cent in October 2014, according to Canada Mortgage and Housing Corporation (CMHC)’s Fall 2014 Rental Market Survey (RMS).

“Increased international student enrolment and the aging population are supporting rental demand while continued low mortgage rates make moves to homeownership attractive.” noted Warren Philp, Market Analyst at CMHC’s Thunder Bay Office. “Frequently, older age groups look to rental accommodation as one alternative for meeting their housing needs. Increased demand for rental is being met partly through higher-density forms of accommodation that includes purpose-built apartments or condominiums that are offered for rent,” concluded Philp

On the basis of a sample of structures common to both the 2013 and 2014 surveys(2), the average two-bedroom apartment rent increased by 3.9 per cent in Thunder Bay.

Vacancies by bedroom type in Thunder Bay showed an increase only for units with two bedrooms. The two bedroom unit vacancy rate rose to 2.1 per cent from 1.8 per cent while both bachelor and one bedroom unit vacancy rates declined. The highest rents in Thunder Bay were found in Zone 1 or the North Ward, also the part of the city with the highest demand for rental accommodations and hence, the lowest vacancy rate.

Apartment rentals remain a hot commodity in Thunder Bay
Apartment rentals remain a hot commodity in Thunder Bay