It's nearly impossible to find a place to rent. But retirement homes have room to spare

While Canada's average national vacancy rate sits at a record low of 1.5 per cent, there is one kind of property that likely has a "for rent" sign out front: retirement homes.

The Canada Mortgage and Housing Corporation (CMHC) said vacancy rates for standard spaces in retirement homes averaged 15.6 per cent the last time it surveyed them in 2021, ranging from as high as 26.8 per cent in Alberta and low as 6.3 per cent in Nova Scotia.

Although that CMHC data reflects conditions at the height of the pandemic, numbers from the private sector seem to indicate the trend is continuing. 

Chartwell, the largest operator of retirement homes in Canada, said in a press release its forecasted February 2024 vacancy rate was around 15 per cent. That number encompasses a range of options, from apartments for independent living to long-term care homes. 

But many seniors are steering clear of residences geared to them, citing reasons such as an increased desire to "age in place" in their own homes or the cost of renting at retirement homes.

As a result, some retirement homes are offering incentives like three months of free rent and amenities like saltwater pools and pickleball courts to persuade seniors to sign on.

In addition, some organizations are even starting to open the parameters to allow students and other young people to live there.

Also contributing to high vacancy rates is confusion between retirement homes — also called seniors' residences — and long-term care homes. During the COVID-19 pandemic, the latter were often in the news because of high rates of deaths among residents.

Long-term care homes, sometimes called nursing homes, are for people who require a high level of round-the-clock support from personal support workers and other health professionals. Seniors' residences, on the other hand, usually feature independent or supported living in individual apartments with the addition of amenities and optional shared dining.

Both got a bad rap during the pandemic, when they were plagued with outbreaks or shut down to outside visitors.

Public health measures during that time restricted people from moving in, according to Arlene Adamson, president and CEO of the Alberta Seniors and Community Housing Association, which represents private and not-for-profit seniors' housing operators in the province.

It's been tricky to entice people back in the wake of COVID-19, Adamson told Cost of Living. Residence operators try to do so by emphasizing both their safety measures and the sense of community and connection people can find in retirement homes.

"The number one thing that our residents say is, '[I] should have moved in a lot earlier and love the services and the sense of community. And I certainly feel safe in our community,'" she said.

Francis Cortellino, an economist at CMHC and lead author on the organization's most recent paper about senior housing trends, said Canadians fortunate enough to own their homes are staying in them longer and longer.