WATERLOO – The Canada Mortgage and Housing Corporation is predicting rising rental prices and a declining vacancy rate in Waterloo Region.

The main driving factor, it says, is population growth. The CMHC says two groups of people are contributing to the rental market competition: students and seniors.

Pat Inder is in the former group. She likes her two-bedroom apartment in Kitchener, but she says it's getting too expensive.

"Everything keeps going up, expenses, but our government pension doesn't go up," she says.

She's been on an affordable housing waitlist for three years.

According to the region, the wait could be as long as seven years.

"We've got approximately 4,700 households that are on that waitlist," explains Ryan Pettipiere, director of housing for the Region of Waterloo.

The increased pressure on affordable housing plays a factor in what the rental market looks like.

The CMHC says that Kitchener, Waterloo and Cambridge made up the second-fastest growing urban centre in the province from 2017 to the following year.

"We are expecting their upwards trend for the foreseeable future," explains Jennifer Tsao, senior analyst of economics for the CMHC.

In 2016, the average cost of a two-bedroom unit was just over $1,000. In 2021, it's expected to reach $1,300.

For students like Laura Curriston, that can make living at home and commuting an attractive option.

"It was really hard finding an affordable apartment, because all of them were costing upwards of $1,700," she says.

A number of student rental companies in the area did not respond to requests for comment, but Accomod8U says they rent out more than 3,300 rental units per year in Waterloo alone.

Their occupancy rate is typically around 99.8 per cent.

The CMHC's annual housing market outlook found that, while the number of new rental units being built has increased by 20 per cent over the last few years, many of the new builds are in the luxury market.

The region says more affordable housing options are on the way, though.

"Last month, regional council approved an award of $5.4 million to create affordable housing," Pettipiere says.

That will create 58 new affordable units.