Sudbury Apartment Market

Sudbury has a population of 157,857 people and the city’s rental apartment market has 10,862 apartments in approximately 806 apartment buildings. The city’s proportion of apartments to people is 6.9 apartments per person, above average for the province’s major cities. The city’s apartment market is dominated by smaller buildings, with 766 buildings under 50 units in size (or 95% of the market), although the city does contain 17 buildings from 100-200 units in size.

Vacancy Rates and Average Rents

Sudbury has an overall vacancy rate of 2.8% for 2009 which is low by Ontario standards, however this rate more than tripled from the 2008 vacancy rate, indicating that the market is changing. At this point it is impossible to determine if vacancies will continue to rise or stabilize at the current rate. Average rents are low and range from $511 for bachelor apartments to $945 for 3+ bedroom apartments, representing a minor increase from 2008 to 2009.

For Investors

Sudbury’s apartment market is characterized by small, aging properties and an unsophisticated rental market with mediocre product and service. Renters may find the low average rents attractive and the advantages of a good local health care system, but investors will be alarmed by the rapidly increasing vacancy rates. Unless investors are seeking to build a presence in northern Ontario be entering other markets in the area, they are probably advised to focus on opportunities in southern Ontario.