Vacancy Rate Tightens Slightly in Fall 2014

After 3 straight years of increases, Yellowknife’s vacancy rate declined to 4.8% in the fall of 2014 according to the CMHC.  This dip of 0.5% still leaves renters with lots of options and shouldn’t have much of an impact on rents.  To put things in perspective, our average vacancy rate from 2007 to 2011 was 1.57%

It is interesting to note that the universe (total number of rental units in Yellowknife) increased to 1,943 from 1,928 in the spring.  That means we’ve finally regained the inventory levels of 2007.  As mentioned in previous posts, the rental universe can decline if units are converted to condos or hotel rooms, or if they are declared to be off the market and “under renovations.”  The difficulty for those of us watching the rental market is that we can’t tell the difference between units that are truly being renovated, and those that have simply been shuttered in order to keep high vacancy rates from dragging down rents.  These figures are not audited by CMHC, they are reported by landlords based on the honour system.

Nonetheless, with that caveat, it’s good to see that things have tightened up somewhat since the spring.  It could be sign that our city is growing at a slow but steady pace.  It will be interesting to see what impact the new condos at Niven Lake and on Franklin Avenue will have once they are completed later this year.  Can those units be absorbed without impacting vacancy rates? If projections for growth in the mining and public sectors bear out, they just might.