Rising Supply Raises Ontario Seniors’ Housing Vacancy Rate in 2009

TORONTO – Canada Mortgage and Housing Corporation (CMHC) released the 2009 Ontario Seniors Housing Report, showing that the vacancy rate based on total accommodation spaces moved up to 13.2 per cent from 12.5 per cent last year. In 2009, the first National Seniors’ Housing Survey replaced surveys previously conducted only in Ontario, Quebec and BC. The new survey distinguishes between standard and other types of spaces, particularly heavy care spaces. The national vacancy rate for standard spaces was 9.2 per cent, while in Ontario it was 13.3 per cent. Other highlights of the 2009 Ontario Seniors’ Housing Report are as follows:

The vacancy rate for total retirement home spaces moved up after declining steadily for five years from the peak of 13.6 per cent registered in 2003.
Total retirement home supply continued to grow, with one and two-bedroom units gaining market share. The average monthly rent for a standard private/studio space was $2,520.

“Since the previous survey, the retirement home supply in Ontario has been growing faster than the population aged 75 and over. As a result, the downward trend in the vacancy rate reversed in 2009,” said Ken Sumnall, CMHC’s Ontario Manager, Housing Market Surveys. “Looking ahead, the vacancy rate will increase moderately. The growth rate of the senior population in Ontario will remain relatively low until 2017 due to the low birth rates in the 1930s. At the same time, the substantial number of recently opened retirement homes and projects under construction will boost the supply of available spaces. However, this new supply with its larger suites and enhanced amenities will tend to generate more interest in a retirement home lifestyle, even among people as young as 65.”