Vacancy rate in Kitchener-Cambridge-Waterloo hits highest level since 1993: report

Apartment for rent sign. (Getty)

Vacancy rates in Waterloo Region are growing, but low-income earners may still have trouble finding a place to live.

According to the Fall 2024 Rental Market Report from the Canadian Mortgage and Housing Corporation (CMHC) the vacancy rate in Kitchener-Cambridge-Waterloo has reached its highest level since 1993.

The report said the vacancy rate in the purpose-built rental market has hit 3.6 per cent.

On their website, the organization said the recent restrictions on international study permits has reduced student rental demand, which has caused high vacancy rates in Kitchener East and Waterloo.

They also said the average annual rent increase for a two-bedroom unit has slowed down to 4.2 per cent, settling at $1,766. The report cites strong rental expansion in Kitchener Central, Waterloo and Cambridge as one of the reasons for slower rental increases.

However, they said lower-income renters are still facing challenges with the rent for newer two-bedroom units averaging $2,356. The report lists the vacancy rate for affordable units at below one per cent for low-income earners.

An affordable unit is defined as housing that costs 30 per cent or less of a renter’s income.