Victoria and Kelowna have the lowest vacancy rates in Canada according to a national study just released Thursday by the Canada Mortgage and Housing Corporation.

The results of the CMHC's spring survey revealed that the two B.C. cities both had a 0.3 per cent vacancy rate for rental accommodation, followed by Greater Sudbury, at 0.7 per cent, and Vancouver and Saskatoon, at 0.9 per cent.

Overall, B.C.'s 1.1 per cent rental vacancy rate was second only to Manitoba, at 1.0 per cent, and ahead of Saskatchewan, at 1.2 per cent.

All major centres in British Columbia except for Abbotsford posted a vacancy rate below one per cent on account of the rising migration of workers from Central and Atlantic Canada who settle in rental housing, and relatively high home ownership costs that have resulted in increased rental demand, the report said.

The study also found Vancouver has one of the highest average monthly rents for two-bedroom apartments in Canada, at $1,071, slightly less than Calgary, at $1,096, and Toronto, at $1,075.

Nationally, the average rental apartment vacancy rate in Canada's 35 major centres decreased slightly to 2.6 per cent in April 2008, from 2.8 per cent in April 2007.

For the study, a unit is considered vacant if, at the time of the survey, it is physically unoccupied and ready for immediate rental. New units were not surveyed in the study since they tend to rent above the average market value.