People looking to rent an apartment in Windsor or London found low vacancies and higher prices in 2023.
The Canadian Mortgage and Housing Corporation released its latest rental market report Wednesday, revealing that most major markets across the country are seeing a strong rental demand that is outpacing supply. This leads to tighter markets and lower affordability.
The overall vacancy rate for rental units in London is still historically low at 1.7 per cent.
Average rents increased across all bedroom types. Renters of two-bedroom apartments are paying on average $1,479 a month, up 6.4 per cent from 2022.
The increase is even higher among units that have recently turned over. New renters pay around $1,820 for a two-bedroom apartment.
The picture is very similar in Windsor where the overall vacancy rate rose slightly from 1.4 per cent to 2 per cent, but is still historically low.
There was an increase of 310 rental units in 2023 but it had little impact on the rental market after accounting for demolitions, renovations, and conversions in the existing stock.
The average rent for a two-bedroom apartment in Windsor went up 6.5 per cent and is now around $1,253. New renters will pay even more.
Record-high population growth along with increasing home ownership costs are leading causes of the low vacancy rate.
This has driven up costs and led to low turnover of units. Only 11.6 per cent of all rental units changed hands in 2023.