Availability hits record low and prices are up in Windsor rental market: report
A new report shows the rental unit vacancy rate in Windsor has hit a record low and the prices have increased.
The vacancy rate in the city is at 1.8 per cent, according to a report released by the Canada Mortgage and Housing Corporation (CMHC).
“Economic recovery and growth boosted demand against supply that was constrained by labour shortages,” said the report.
The CMHC said rent for vacant units were 20 per cent higher than those for occupied units, highlighting an affordability barrier for prospective tenants.
“Affordability remains a challenge for lower-income households that face very stiff competition for units they can afford. This is because those units are also accessible to higher-income households,” said the CMHC.
There were declines in vacancies for all unit types (number of bedrooms). The overall rate in 2022 is the latest result in a declining trend from a peak of 14.5 per cent in 2008. The report suggested that declining vacancy rates over a sustained period reflect the increasingly tight rental market.
CMHC rent report for Windsor. (Source: CMHC)
Lizzy Ward and her partner were living in a two-bedroom home for $1,350 a month, but when their family grew a year ago, they know they had to look for something with more space.
The family found a three-bedroom home with a studio basement for $2,400 a month, plus utilities.
“We're worried almost every month,” she said. “Oh will this be the month that we can't pay rent? Will this be the month that we can't pay this bill or that bill?”
Ward is like many, who are now spending more than 50 per cent of their monthly income on housing alone.
“The amount of stress and worry and things that therapy can't even help because it's not something that's just you can talk about it and feel better,” she explained.
Real estate agent Rhys Trenhaile says the low supply and high demand means landlord can raise rents, which jumped 11 per cent in 2022.
“When the vacancy rate is that low, what you're doing is you're putting upward pressure on rents because now you start getting renters competing, instead of before we had buyers competing,” he said.
CMHC rent vacancy Windsor
Bidding wars
In 2022, the CMHC said Windsor started seeing “bidding wars” on rental apartments for the first time. The report said this was highlighted in conversations with stakeholders on emerging themes.
“The low vacancy rate is the result of increasing rental unit demand coming up against limited rental unit supply. Fewer units are available to potential renters when more units are taken up than are made available,” according to the report.
Increasing demand
The CMHC said demand for rental units grew migration increased rental unit demand. Windsor’s population grew by 1.2 per cent in October 2022 year-over-year. The easing of pandemic restrictions at the start of the year brought back international migrants and temporary residents. At the University of Windsor, the return to campus brought students back to the area. Higher rental unit demand was supported by economic recovery and employment growth in sectors where the workers tend to be renters.
Home ownership costs impact rental market
Higher homeownership costs kept more people in the rental market supply was also constrained by higher costs of homeownership, suggested the report.
“Higher interest rates increased borrowing costs, and this led to a reduction in the capacity of some households to enter the market,” said the CMHC.
The impact of this was evident in the October 2022 MLS sales, which were 37 per cent below their five-year average. Some renters who would have transitioned to homeownership remained in the rental market. This was all reflected in lower rental-unit turnovers.
In 2021, almost 17 per cent of units turned over, while in 2022, only 13 per cent of units did. There were lower turnovers recorded for all unit types across all zones of the CMA, revealing the widespread nature of the decline.
- With files from CTV News Windsor's Rich Garton
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
B.C. judge orders shared dog custody for exes who both 'clearly love Stella'
In a first-of-its-kind ruling, a B.C. judge has awarded a former couple joint custody of their dog.
Saskatoon police to search landfill for remains of woman missing since 2020
Saskatoon police say they will begin searching the city’s landfill for the remains of Mackenzie Lee Trottier, who has been missing for more than three years.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.