As both Calgary’s and Alberta’s economies continue to thrive, rental vacancies are showing decreased numbers compared to last year.
According to the Canada Mortgage and Housing Corporation (CMHC), the apartment vacancy rate decreased in Calgary’s Census Metropolitan Area to 1.3 per cent this October compared to 1.9 per cent in October of 2011. Across urban centres in Alberta, the average vacancy rate for “privately- initiated” rental apartments in Alberta’s urban centres declined to two per cent in October 2012, down from 3.4 per cent last year.
“Increased demand for rental units has been led by strong job creation and net migration in the Calgary and Edmonton CMA’s,” said David Lan, CMHC’s senior market analyst for Edmonton. “These two factors have been the result of a strengthening economy and improved labour market conditions in both regions.”
With the decreased vacancies comes an average 4.3 per cent rent increase in same-sample rents for two-bedroom apartments across Alberta centres with Calgary seeing a 5.9 per cent increase and Edmonton 3.8 per cent.
In October 2012, Calgary’s average two-bedroom apartment rent was $1,150.