windsor area rents fall to lowest levels in 15 months, but still high for many
the largest annual jump in 30 years in new rental units...
3 minute read
a rental sign is shown at an apartment complex on riverside drive east in windsor on oct. 20, 2023.
dan janisse
/
windsor star
the largest annual jump in 30 years in new rental units being built in canada — 4.1-per-cent in 2024 — has helped slow a rapid rise in rents, and even resulted in some price declines in certain categories. in the windsor area, the canada housing and mortgage corporation’s fall rent study reported the vacancy rate rose to 3.3 per cent. the national vacancy rate climbed to 2.2 per cent, which is still lower than the 10-year average of 2.7 per cent.
but the cmhc study also point out the number of new units deemed affordable — consuming 30 per cent of your monthly income or less — was scarce among newly built two-bedroom units and non-existent for one-bedroom units.
according to website rentals.ca data, the national average rent fell two per cent for apartments and purpose-built condos, to an average of $2,120 last month.
the average rent for all condos and apartments in the windsor area was down three per cent in november, to $1,644.
“we have two very different types of renters,” windsor-essex county association of realtors president maggie chen told the star. “they’re different tenants in different income brackets.”
chen said the local condo market has held its price levels as demand has left fewer vacancies than in the apartment rental segment.
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many of these multi-bedroom condos have been filled by workers coming in for one to three years to work on the mega projects in the area, she said, such as the gordie howe international bridge, the nextstar energy battery factory, the numerous automotive supplier plants being built, highway 3 expansion and soon the new windsor hospital.
“from the last year or two, i’ve seen an influx of workers coming for short- to longer-term rentals because of work opportunities,” chen said. “they’ll rent a three-bedroom condo and there will be a few people sharing the condo.
“i think this is something particular to the windsor market.”
chen said the multiple listing service for the windsor area reports average rents of $1,855 for a one-bedroom condo while a two-bedroom condo fetches $2,551. those figures are virtually the same as in 2023.
however, it’s another story in the apartment rental segment.
according to rentals.ca, the average rent in november for a studio locally is $1,276, a one-bedroom $1,548, a two-bedroom $1,816 and a three-bedroom $1,818. the one-bedroom units showed no change year-over-year, while the other three categories recorded declines of six to 10 per cent.
chen said the apartment rental market has become more competitive with the reduction in the number of international students and other immigrants the federal government is now permitting into canada.
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the most recent cmhc study reported local vacancies increasing, particularly around the university of windsor and st. clair college this fall.
chen added there are also more homes that have become available for rent as sellers wait for what they believe will be a more seller-friendly market in 2025 due to the declining interest rates.
“landlords are most interested in tenants with good credit scores, stable incomes and they’ll offer lower rents to those renters,” chen said.
“demand around the university and college has gone down. you’re seeing more vacant properties. that means lower rents and more competition.”
chen notes, however, that the increased supply of newly built apartments and condos isn’t necessarily addressing the affordability issue in the area.
mls data show the average rent for a new two-bedroom unit at $2,358.
the cmhc study also stated many of the new units coming into the market are being built outside the city of windsor.
“the june ontario government study says an affordable one-bedroom for windsor is $1,042 and $1,227 for a two-bedroom,” chen said. “these numbers don’t align to the apartments available here.”
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