Low Vacancy Rates Driving Alberta Rents Up

Low Vacancy Rates in Calgary, Edmonton Increasing Rental Costs

An increase in population as a result of strong employment growth and high income levels has lowered Alberta’s condominium / apartment vacancy rates considerably.

The Canada Mortgage and Housing Corporation (CMHC) has said that although apartment vacancy rates are slightly increasing in Calgary and Edmonton, they still remain well below the national average which will cause higher rental prices throughout 2014 and 2015.

Calgary in particular has experienced very high positive net migration levels of its own.

However, a combination of new rental developments, secondary rental market competition and first time home buyers have all done their part to increase vacancy rates.

Calgary

Predictions from the CMHC put Calgary’s apartment vacancy rates at 1.2 percent with the average cost for a two-bedroom unit at $1,290 by October of 2014

Only just a year later in October of 2015, that percent is expected to rise by 0.3 to 1.5 percent with an average monthly cost of $1,330.

Edmonton

On the other hand, Edmonton’s vacancy rates are predicted to increase by a very small amount as employment growth and net inbound migration slow but still remain positive.

As of October 2014, Edmonton’s apartment vacancy levels are expected to increase to 1.6 percent and in October of 2015 a minimal increase of 0.1 to 1.7 percent. The current vacancy rate in Alberta’s capital is 1.4 percent.

Apartment rental prices in Edmonton are on the rise due to high demand. The average cost of a two-bedroom condo / apartment is predicted to increase by $30 from $1,195 in October 2014 to $1,225 in October 2015.

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