Retirement News : Seniors : Vacancy rates rise in retirement housing but demand persists in ...

Vacancy rates rise in retirement housing but demand persists in ...

Date Added: 10-05-2005

According to the results of latest
retirement home market survey conducted by Canada Mortgage and Housing
Corporation (CMHC), demand for this type of housing remains very strong in
Quebec. In fact, even after several years of strong growth in the construction
of retirement homes, the markets posted only marginal increases in their
vacancy rates in 2004. That being said, the survey showed that the vacancy
rates did go up in most of the major markets across Quebec. In fact, four of
the six census metropolitan areas (CMAs) in Quebec registered rises in their
vacancy rates, in both the apartment and rooming retirement home segments.
    In the Montréal area (which, with more than 28,000 units, has by far the
largest retirement housing stock), even with the significant rise in new
retirement housing units since 2003 (940 new units in 2002, 2,870 in 2003, and
2,980 in 2004), the vacancy rate went up only marginally in 2004, reaching
2.9 per cent, compared to 1.7 per cent at the time of the 2003 survey. This
rise was recorded mainly in the apartment retirement home segment. A
comparable increase was registered on the Québec area market, where the
vacancy rate rose from 1.9 per cent to 3.5 per cent in October 2004. The
increase in the Québec CMA was especially apparent in the rooming retirement
home segment. But, even with a vacancy rate of just under 6 per cent, this
segment is still considered relatively balanced. Demand for retirement housing
is also significant in the Sherbrooke area, where this demand may be extending
beyond the retirement home types surveyed. This market is therefore still
qualified as tight.
    In the Trois-Rivières CMA, where the universe of 2,312 retirement homes
is close to the stock in the Sherbrooke area, the vacancy rate, while above
the 4-per-cent mark in 2004, still indicated a shortage. Shortage situations
also persisted in Gatineau (the vacancy rate remained stable at 0.6 per cent
in October 2004) and Saguenay (the rate fell to 2.9 per cent from 7.7 per cent
in October 2003), where the newly built units were rapidly rented.
    "The results of the latest survey came as no surprise to me," said Kevin
Hughes, Provincial Economist at CMHC. "In addition to the significant quantity
of statistical data demonstrating the aging of the population, which in itself
is not a sufficient inference base, our many field surveys confirmed that
demand would remain steady in 2004. But, while demand for these traditional
forms of housing is obviously significant today, it will be necessary to watch
the preferences of the future cohorts of seniors who, when the time comes,
could opt for alternative forms of housing. The question is not so much
whether there will be a demand, but rather what type of demand," noted      
Mr. Hughes.
    "While the results show lower vacancy rates for spacious units in larger
apartment retirement homes, it would not be prudent to conclude that this
situation perfectly reflects consumer preferences. While there is no denying
that growing attention is being placed on the needs of seniors, the options
still remain limited for some people," added Mr. Hughes.

    CMHC is Canada's national housing agency. We help Canadians purchase
their own homes, help create affordable housing, research housing issues and
share our knowledge with all Canadians and promote Canada's world-leading
housing industry in other countries. Our Market Analysis Centre (MAC) is the
leading unbiased, comprehensive source for national, regional and local
housing market information.

For More Information:

http://www.newswire.ca/en/releases/archive/May2005/09/c6274.html