The rise in housing vacancy rates in the Waterloo area continues to affect low-income earners.

The data from the Fall 2024 rental market report issued by the Canada Mortgage and Housing Corporation (CMHC) show that vacancy rates in the Kitchener-Cambridge-Waterloo area have reached their highest level since 1993, with the vacancy rate in the dedicated rental market at 3.6%.

Reasons for the Increase in Vacancy Rates

• Decreased demand from international students: Due to the recent restrictions on international study permits, leading to higher vacancies in areas like Kitchener East and Waterloo.

• Expansion in the construction of rental units: Especially in Kitchener Central, Waterloo, and Cambridge, contributing to a slowdown in annual rent increases.

Struggles of Low-Income Individuals

Despite this increase in vacancies, low-income individuals still face difficulties in finding suitable housing:

• The average annual rent for two-bedroom units is $1,766, while the cost reaches $2,356 for newer units.

• Vacancy rates for affordable units are below 1%, making it difficult for low-income families to find suitable housing.

Definition of Affordable Housing

According to the report, housing is considered affordable if its cost does not exceed 30% of the tenant's income.