2022 proved to be a challenging year for tenants in Regina, as a lack of new supply and falling vacancy rates led to increased rent in Queen City.
The average two-bedroom rent in Regina rose by 3.3 per cent to $1,186 in 2022, according to the rental market report published by the Canada Mortgage and Housing Corporation (CMHC).
Rent for a two-bedroom condo apartment rose even higher, increasing by 14.7 per cent to $1,467.
Overall, average rent increased by 3.6 per cent for all unit types and zones, which was the result of falling vacancy rates, the CMHC said.
“The rising cost of living, higher rents, and lower vacancy rates are leading to worsening affordability for tenants,” the report said. “Households in the lowest income quintile (those who make less than $32,000 per year) could afford only 8% of the rental market universe.”
Regina’s overall vacancy rate fell to 3.2%, a decrease due to Regina seeing the highest levels of migration in the province and a return to in-person activities.
“Combined with the economy’s return to pre-pandemic levels and residents’ return to in-person activities, these factors contributed to an increase in the occupancy rate of rental apartments,” CHCM said.
Vacancy rates across all areas of Regina fell to an average of 3.2%, well below the 5-year average of 7% and the lowest rate since 2014.
As a result, the current vacancy rate in Regina is approaching the national average (1.9%).
The lowest rates were observed in the Downtown, University, and Lakeview/Albert Park areas.
Also, driving up rent was a need for more rental supply. Regina saw 191 additions; however, due to the demolition and renovation of older rental stock, the increased supply was insufficient to meet demand in the fourth quarter of 2022.
