Apartment vacancies have hit an all-time high in Saskatoon.

According to the Canada Mortgage and Housing Corporation (CMHC), Saskatoon's overall apartment vacancy rate sat at 10.3 per cent in October. That's the highest vacancy rate since the corporation started keeping statistics in 1988.

In 2015, Saskatoon's average vacancy rate sat just above six per cent.

In a recent report, the CMHC says weak employment numbers and an oversupply of available suites caused the spike.

The report says job losses hit the rental market hard. There were 3,200 fewer full-time jobs in the city in September compared to last year.

Effect on rental rates

Unsurprisingly, the sky-high vacancy rate has put pressure on landlords to drop their rents. Rents dropped by 0.9 per cent compared to last year — the first time in recorded history rental rates have dropped in the city. An average new two-bedroom apartment is currently renting for around $1,100.

The CMHC said vacancy rates will only start shrinking when the economy does.

"Moving forward, we expect to see some improvement in the economy," said senior market analyst Goodson Mwale. "We expect to see a return to growth, in terms of employment, in 2017 and 2018 and that is predicated on a return of commodity prices."

Lower vacancy in Regina

In comparison, Regina's apartment vacancy rate is much lower, at 5.5 per cent, which is unchanged from last year.

"Renter demand actually increased in the current survey, but supply increased even faster, which left the vacancy rate elevated," Mwale said.

While Saskatoon's vacancy rate leads the country's major centres, the CMHC said smaller locations like Fort McMurray and Lloydminster in Alberta and Estevan, Sask., are much higher.