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Apartment vacancy rates decline to critical levels in major northeastern Ontario centres.

Apartment vacancy rates decline to critical levels in major northeastern Ontario centres

New apartment units are needed in Sudbury, North Bay, Timmins and Sault Ste. Marie as vacancies decline to near non-existent levels.

In the Canada Mortgage and Housing Corporation's (CMHC) semi-annual vacancy report, which covers the period from April to October of 1989, CMHC analysts point to strong local economies as the chief factor for the vacancy decrease. Meanwhile, Haileybury, Kirkland Lake and Elliot Lake had marginal to severe jumps in vacancy rates. Mine closures and down-sizings were blamed for the increase in the latter two communities.


According to the CMHC report, both economic strength and the influx of workers from other areas reduced the number of vacant units in private buildings from .9 per cent of the total number of units last April to .35 per cent last October.

The combined vacancy rate for both private and publicly assisted units fell from .7 to .3 per cent. The drop translates to 35 vacancies out of 13,032 units.


The supply of rental units which had been present in April of 1989 had been almost completely absorbed by October., as the vacancy rate decreased to its lowest level in over three years, from 2.2 to .3 per cent.

Apartment vacancies in private buildings dropped from 1.5 per cent to .3 per cent by October.


Analysts attribute the strong local economy - fuelled by growth in the service sector - for the decline in the vacancy rate for both publicly assisted and private units to .6 per cent.

The rate for private-sector units declined to .7 per cent from one per cent. The drop translates to 14 available units out of 1,804 units.


Despite the problems plaguing the economic mainstay, Algoma Steel Corp., the city's vacancy rate dropped from its April 1989 level of .3 per cent to .1 per cent.

Public-assisted apartment units were in strong demand.


The town had only a marginal increase in its combined vacancy rate, according to the CMHC report. The rate increased from 4.5 per cent to 4.7 per cent during the six-month period last year.

The report also noted that supply increases were not absorbed.


During the middle portion of 1989, the community's vacancy rate rose 3.2 per cent to 17.4 per cent. The rate translates into approximately 389 vacant units out of a possible 2,242 units.

The only drop in the vacancy rates was registered by three-bedroom units. The rate decreased to 7.3 per cent from 12.7 per cent.


The closure of the Adam's Mine and the Kerr Mine in Virginiatown was blamed for a 1.6-per-cent increase in the combined vacancy rate. The rate had hit 8.1 per cent when the survey was taken.

The largest increase was registered by private apartment buildings with more than six units. The rate jumped from 1.9% to 10%.
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Publication:Northern Ontario Business
Date:Jun 1, 1990
Previous Article:Battle lines remain unchanged in fight over northern forests.
Next Article:Sudbury, Lakehead housing starts outpace 1989 totals.

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