Rental vacancy rates dip to 1.7% in province

The rental market in Newfoundland and Labrador has tightened compared to a year ago, according to the Canada Mortgage and Housing Corporation (CMHC).

The overall vacancy rate in the province decreased to 1.7 per cent in April 2013, compared to 2.7 per cent last year, CMHC says.

In St. John's, the rental market vacancy rate was 1.5 per cent in April, compared to 3.3 per cent a year earlier.

'Current house prices, paired with population growth and a strong economy, supported rental market demand during the survey period.' —Chris Janes of CMHC

"Current house prices, paired with population growth and a strong economy, supported rental market demand during the survey period and slowed the movement from renter households to homeownership," Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador, said in a press release.

"This contributed to the decrease in the vacancy rate throughout the St. John's area."

Provincially, vacancy rates in percentage terms were 2.8 in Gander, 2.5 in Grand Falls-Windsor and zero in Corner Brook.

The survey included centres with a population of 10,000 or higher.

Overall, the average two-bedroom rent was $751 across the urban centres surveyed, with increases recorded in every centre.

The highest average two-bedroom rent recorded was $832 in the St. John's area.

The remaining average two-bedroom rents were $626 in Corner Brook, $605 in Gander and $662 in Grand Falls-Windsor.