London Apartment Market

London is the largest city in southwestern Ontario and one of the largest rental apartment markets in Canada. The city has a total population of 352,395 people and an apartment market of 37,534 apartments in approximately 1,381 apartment buildings. The city has an apartment to population ratio of 10.7 apartment per 100 people, the highest proportion in Ontario (including higher than Toronto). London’s apartment buildings come in all sizes, with 1,263 buildings below 100 units in size, 104 buildings from 100-200 units in size, and 14 buildings over 200 units in size.

Vacancy Rates and Average Rents

London has below average overall vacancies at 4.8% when compared to the rest of Ontario, but vacancies for 2 bedroom apartments are above average at 5.8%. Vacancies have increased significantly from 2008 to 2009. Interestingly, the lowest vacancies are bachelor apartments at 3.5%, which is surprisingly since most major cities and towns in Ontario have relatively high vacancy rates for bachelor apartments. This quirk indicates to investors that London is not like the rest of the province and the normal rules-of-thumb may not be applicable here. Average rents in London are strong and have steadily increased despite increasing vacancies. Average rents range from $539 for bachelor apartments to $1,075 for 3+ bedroom apartments.

For Investors 

London is probably the most sophisticated and mature rental apartment market in Ontario since new apartment construction has been ongoing non stop since the introduction of Rent Control in 1975, when new apartment construction halted or slowed to a trickle in most major cities in Ontario. Several major developers in southwestern Ontario have been busy building in London, including Drewlo, Tricar, and Auburn Developments. Together, these developers have added 20 new rental apartment buildings over the last decade. This astonishing rate of apartment growth is not without its dark side, since vacancies among apartments priced above an average of $1,250 per month are at 7.1%. Steady growth in average rents, however, may help offset selected vacancies. Investors will find almost anything they desire in London, from old to new, small to large, and investors should be able to find properties that fit the required investment goals without difficulty.