Sarnia Apartment Market

Sarnia is the only major city located on the Detroit River at the Canada/United States border other than Windsor. The city has a total population of 71,419 people and has approximately 230 apartment buildings containing 5,430 apartments. The city therefore has an apartment rate of 7.6 apartments per 100 people, a relatively high proportion for major cities and towns in Ontario. Sarnia has mostly smaller buildings, offering 189 buildings less than 50 units in size (or 82%) and only 9 buildings larger than 100 units in size.

Vacancy Rates and Average Rents

Sarnia has an overall vacancy rate of 5.0% for all apartment styles, but vacancies are particularly high among 3+ bedroom apartments at 6.7%. This high vacancy rate among 3+ bedroom apartments is surprisingly since this apartment style is usually in high demand (for families, in particular) and therefore usually has the lowest vacancy rate among Ontario cities and towns. The bulk of Sarnia’s rental apartment market is dominated by 1 bedroom and 2 bedroom apartments which together make up 93% of the total number of apartment units. Average rents range from $515 for bachelor apartments to $957 for 3+ bedroom apartments, significantly higher average rents than in Windsor.

For Investors

Sarnia is located in south-western Ontario on the Detroit River near Windsor but so far hasn’t suffered the same economic decline, despite being a city that relies on only a few major employers (mostly petro-chemicals). The only new rental apartment construction in Sarnia is three mid-rise apartment towers developed by Drewlo from London. It is worth noting that neither Drewlo nor any of the major apartment developers operating in south-western Ontario have entered the Windsor rental apartment market, which reflects the poor long-term prospects of Windsor. Sarnia, on the other hand, is a small but mature market for investors who have their choice of good or poor quality apartments and whatever number of units is preferred. Future rent increases, however, are expected to be small and gradual.