When it comes to the housing market, we often hear the terms buyer’s market or what might be referred to as the opposite, which is a seller’s market. A buyer’s market is one where the number of houses for sale is plentiful, which keeps the prices down; a seller’s market means there are few houses on the market so the prices tend to be higher.
For the past two to three years, Brandon has been in a buyers’ market when it comes to the residential real estate market. Houses were on the market longer than expected and prices have adjusted to the point where they are starting to move again.
While the buyer’s/seller’s market is often referencing the purchase of homes, the same principles in market fluctuation also affect the rental market.
Vacancy rates for apartments have increased fairly significantly in the last five years. In 2015, the vacancy rate for rentals was 2.5 per cent, it is estimated that by the end of this year the rates will have climbed to 9.8 per cent. In general, this will provide more options for renters when they are looking for accommodations and much of what we’re seeing in the market is based on inflation.
The average rental rates have been growing slower than the rate of inflation. This means that if you have a cost of living increase at your work, tied to inflation, you are gaining ground on the rental market in Brandon.
What does this trend mean for renters?
- If you check the advertisements for apartments on the market, most landlords are offering incentives to fill the vacancies that they have. Some of these incentives include discounted rent on a one-year lease, one month free on a year lease, referral programs offering an incentive to entice your friends or colleagues to rent as well.
- The opportunity to extend your lease at the current rate (or an even lower rate) for committing to another year.
- Those looking for an apartment have plenty to choose from. If the market is close to a 10 per cent vacancy rate, you can take your time and select a place that not only fits your budget but has the amenities you’re looking for.
As of today, Vionell Holdings has nearly 20 two-bedroom units available for immediate possession for less than $960 per month. The median income in Brandon is $56,694, therefore the affordable rent for the market is defined as $969. This means that not only is there an abundance of available rentals in Brandon, but there are many that fit within the affordable housing criteria as defined by the Canada Mortgage and Housing Corporation.
Vionell Holdings Partnership (VHP) provides rental housing and property management for an array of residential and commercial customers, including Condominium Management. VHP currently has nearly 4,000 units under management in Manitoba. VHP has committed to constructing 128 multi-family residential units in Portage la Prairie. The first 64 units will be ready for occupancy in the coming months. For more information please visit www.vhproperties.ca.