I have written about the ridiculous assertion that our vacancy rate in Toronto is 1% or some ridiculous small percentage, and I have figured out why the numbers are completely skewed compared to other countries.
Basically the vacancy numbers include all the condos ever built instead of just the ones that are for rent or in the rental pool.
This means that our vacancy rate number essentially means nothing and even tiny fluctuations represent thousands of units on the market.
500,000 condos are built
100,000 are in the rental pool
10,000 are currently for rent or vacant or under renovation
A proper vacancy rate calculation would end up with a 10% vacancy rate.
Current calculations would end up with a 2% vacancy rate.
I actually did consider during my investigations about the computation of the vacancy rate last year, doing this myself, but it is too big a job for my company.
I am very glad that someone seems to have seen the light at CMHC about some of the risky, dangerous behavior that is so common in this out of control market.
CMHC has a very important role in protecting Canadians, the idea that has been floated around that Banks and Mortgage Originators should bear some of the risk if mortgages go sour. That is just common sense.
Regardless, like the foreign investment numbers, the vacancy numbers are being skewed, I urge you to look at the methodology of the calculation and compare it with other countries and you will see that our vacancy rate has been manipulated to look a lot lower than it is. Investors are being misled by the people who are supposed to protect them.
We absolutely need to maintain the integrity of CMHC and it’s purpose as a watchdog and protector and bean counter for the Canadian people.