Yellowknife (Aug 20/03) - Earlier this year developers in Yellowknife were predicting a change in vacancy rates for the summer. Their predictions are starting to come true.

In January the rate was near zero and it was extremely difficult for people to find places to live.

Only five apartments for rent were advertised in the January. Now in August that number has already jumped to 13 rentals.

With some new apartment buildings close to completion, the market is starting to open up making it easier for people to find a places to rent.

Every year the Canada Mortgage and Housing Corporation completes a survey, which looks at the number of rentals available. Last October, the city had a vacancy rate of 0.3 per cent.

"Basically what that means is, out of 1,525 apartments there were four vacancies," said Richard Goatcher, senior market analyst for Northern Alberta and the Northwest Territories.

Goatcher said with all the new development in Yellowknife they are predicting an increase in the number of vacancies when the survey is completed for October of this year.

"I don't think it will be a big change in the vacancy rate but there will be an small increase," he said. "It will be better then it was."

"Vacancy rates under one per cent aren't good for any community. It drive the rental prices up," he added.

One of the biggest development projects right now is being completed by Nova Constructions. The company is working on a 190-unit apartment building, which is located behind St. Patrick high school at 52 and 44 streets.

Mike Mrdjenovich, owner of Nova Construction, said the first 60 units will be completed by September and the rest will be finished by December.

"This will certainly open up the market," he said. "People will now have a choice of places to live."