Windsor Apartment Market
Windsor has a total population of 216,473 people, up only 3.5% between 2001 and 2006. The city’s rental apartment market contains 13,940 apartments in approximately 984 buildings, which means the city has an apartment rate of 6.44 per 100 people. Most apartment buildings are small and medium size with 94% less than 50 units in size. One of the major factors in the west end of Windsor is the student population of the University of Windsor which dominates rental housing in this sector of the city. No new construction has taken place in Windsor for a long time and given the city’s recent past and immediate future new construction is not justified.
Vacancy Rates and Average Rents
Windsor has one of Ontario’s highest overall vacancy rates at 13.4% for 2009, although this actually is lower than the rate of 15.0% for 2008. Bachelor apartments in the city have the highest average vacancies at 16.8%, while 1 bedroom and 2 bedroom apartments have the lowest vacancies. Windsor has a proportionally strong supply of bachelor apartments, which may explain high vacancies for this apartment style. Not surprisingly, average rents are also weak, ranging from $462 for bachelor apartments to $832 for 3+ bedroom apartments. It should be noted that both average vacancy rates and average rents have dropped, suggesting apartment owners have lowered rents significantly to attack their vacancy problems.
For Investors
Windsor has suffered greatly over the past decade as the loss of jobs in the auto industry and a general economic decline have hit the city hard. Many residents have been forced to leave the city for London, Hamilton, or the GTA to seek employment. This has resulted in the highest vacancy rate in Ontario among major cities and towns, making Windsor an unattractive market for investors. Currently, sales are slow, vacancies are high, rents are stagnant, and the situation shows no signs of improving soon. Investors, unless they are prepared to take a long-term chance or need a loss on their books, should probably avoid Windsor.
