Peterborough Apartment Market

Peterborough is located northwest of the GTA but too far away for easy commuting, although some energetic residents do just that. The city has a total population of 116,570 people and offers renters 5,790 rental apartments in approximately 398 buildings. The city has a below-average apartment to population ratio of 4.97 apartments per 100 people. Although most of the city’s apartment market is dominated by smaller buildings (347 buildings, or 87%, smaller than 20 units in size), the city does contain 13 buildings with 100-200 units in size.

Vacancy Rates and Average Rents

Peterborough has an overall vacancy rate of 6.0% for 2009 which is high for Ontario. It is important to note, however, that the 2009 vacancy rate tripled from 2008, indicating a precipitous drop in demand for rental apartments in the city in the space of one year. Average rents increased slightly over the same period and range from $589 for bachelor apartments to $1,057 for 3+ bedroom apartments. Average rents for 2 bedroom and 3+ bedroom apartments are above average for the province.

For Investors

Peterborough has a relatively low proportion of rental apartments to population which normally suggests undersupply, but the high vacancy rate indicates the city is amply supplied with rental apartments to meet demand. In the west end of the city students attending Sir Sanford Fleming College leave a mark on the rental apartment market, but fortunately no easily identifiable “student ghetto” is in evidence—students seem to merge into the local rental market with ease. Investors may find Peterborough to be located inconveniently for management purposes but the red flag that shouldn’t be overlooked is a vacancy rate that tripled in only one year. Renters are not simply moving out of their apartments in Peterborough, they are moving out of the rental apartment market altogether.