Cambridge Apartment Market

Cambridge is the southernmost of the “Tri-Cities”, straddling the Highway 401, and with a total population of 120,371 people is larger than Waterloo but smaller than Kitchener. Cambridge has a rental apartment market of 4,621 apartments in approximately 234 buildings. The city’s apartment rate is therefore 3.8 apartments per 100 people, well below average for Ontario and lower than either Waterloo or Kitchener. Cambridge has long been a family-oriented city with a large supply of single-family suburban development. Apartment buildings in the city are small size, with 91% being under 50 units in size, and the city has no buildings over 200 units in size.

Vacancy Rates and Average Rents

Cambridge has the highest overall apartment vacancy in the Tri-Cites at 5.6%. Most of these vacancies are found in 1 bedroom and 2 bedroom apartments, while vacancies for 3+ bedroom apartments are much lower, confirming comments above about Cambridge being a family-oriented city. Average rents for Cambridge are relatively low compared to other major cities in Ontario, and range from $566 for bachelor apartments to only $855 for 3+ bedroom apartments, a small increase from 2008 to 2009. Cambridge is obviously an affordable rental apartment market but renters don’t have much choice, since the city contains only 72 bachelor apartments and 190 3+bedroom apartments.

For Investors

Cambridge has seen some new apartment construction: three mid-rise apartment buildings, two of which were developed by Tricar. The city has seen strong population growth, 9.1% from 2001 to 2006, but given the high vacancy rate for rental apartments, most of this new demand has probably been focused on freehold and condominium properties. Cambridge benefits from being located right on the Highway 401 and only a short drive north to Kitchener and Waterloo and has attracted some major employers, however for apartment investors it is not as desirable a market as it’s neighbours due to high vacancies and low average rents.