Kelowna

It's getting easier to find rental accommodations in the Central Okanagan.

Canada Mortgage and Housing Corporation's annual fall survey of apartment rentals shows the vacancy rate rose to 3% in October of 2009.

That's a significant increase over a year ago when the vacancy rate was a meager 0.3%.

The CMHC report says apartment vacancy rates rose in both the core area and Rutland while townhouse vacancies also moved up in October.

The report only looks at apartment and townhouse complexes. Single detached home rentals, duplexes and secondary suites are not factored in.

"Demand for purpose-built rental housing has softened in response to lower employment growth," says CMHC market analyst Paul Fabri in explaining the move up.

"Increased competition from investor-owned condominium rental units also contributed to higher vacancy rates. Home ownership has become more attractive to renters during the past year."

Fabri says favourable interest rates along with declining home prices earlier in the year has led to lower mortgage carrying costs.

He says both apartment and townhouse rents have also moved lower in response to rising vacancy rates.

The average rent for a two-bedroom apartment in Kelowna was pegged at $897/month in October compared with $967/month at the same time last year.

The provincial average is $1,001/month.