Barrie Apartment Market

Barrie is one of Ontario’s most rapidly growing cities, expanding at the rate of 23.8% from 2001 to 2006. The city has a total population of 128,430 people and contains only 3,289 apartments in approximately 218 apartment buildings. The city therefore has an apartment rate of 2.56, which is low for a city of this size suggesting the area is underserved for rental apartments. Nearly half the apartment buildings in Barrie are 5 or less units in size and there are only 7 buildings larger than 100 units in size. This is a rental apartment market dominated by small and medium sized buildings.

Vacancy Rates and Average Rents

Barrie has an overall vacancy rate of 3.8% but this general average is misleading since bachelor apartments have a vacancy rate of 11.7%, but 3+ bedroom apartments have a vacancy rate of 0.6%. This indicates that the generally old buildings found in the Barrie rental apartment market are oversupplied in bachelor apartments but not meeting demand for larger family-sized apartment styles. This is an opportunity for developers. Average rents for 2 bedroom apartments ($961) and 3+ bedroom apartments ($1,128) are among the highest in the province, confirming the opportunity for developers to enter the market with large sized apartments and achieve high rents.

For Investors

Barrie currently contains mostly older rental apartment buildings, but for investors a good range of property sizes is available from duplexes to high-rises. Only a few rental apartment buildings are in poor condition. No new construction has taken place for many years but with growing demand and a forward-thinking municipal government it is only a matter of time before developers enter this market. Current multi-unit residential construction has been large condominium towers located along the lakeshore. Investors should be aware that rents are average in Barrie and vacancies are middle-of-the-road, but the city is growing at a high rate and enjoys a good location so rental apartments should enjoy a reliable if unexciting future in the city.