Fewer Rental Units Available in P.G.
Wednesday, June 13, 2012 @ 3:58 AM
Prince George, B.C. – The rental vacancy rate has slipped in Prince George this spring compared to a year ago.
The semi annual rental report by Canada Mortgage and Housing, indicated the vacancy rate has been nearly cut in half, as it now sits at 4.6% down from the 8% recorded in April of last year.
With the demand for rental housing up, the average rent has also increased. In April, the average rent (of units of all sizes) was $681 dollars a month. That’s up from the average rental rate of $658 dollars a month recorded a year ago.
CMHC says “job creation and the resulting decline in the unemployment rate helped to support the demand for rental housing.” CMHC says this is especially true in the interior and north where natural resource development is creating a demand for employees.
Comments
That and the fact that no one builds apartments anymore, preferring to build the higher costing and revenue producing condominiums
Building an apartment building for rent and one to be sold for strata, if you look at the quality of the stratas they have been putting up at Ferry, is roughly the same.
So let’s assume you can build one that costs $200,000 per 2 bedroom unit. Economical rent for that, based on less than 100% occupancy on average, would have to be in the order of $1,500/month.
You cannot compete with the older stock we have and especially with small, older houses that are also on the rental markiet.
Even if for some magic reason one could build a building that could rent for $1000 a unit, there is still no way that it will rent anywhere near 100% without some substantial amenities. And we all know they cost to build and they cost to maintain.
$200,000 per 2 bedroom unit is a ridiculous price though for an average unit cost for a decent apartment building. Most in this town are built out of wood not concrete….
A lot of people I know that were born and raised in this town and went to work up in the oil and gas fields now choose to live in Kelowna where they fly out to camp direct. PG just doesn’t compete when it comes to quality rental units.
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