|
Where's The Apartment Rental Vacancy Rate Going in Calgary?Copyright © 2008 Lynn MacKenzieIt appears that the rental vacancy rate in Calgary is dropping and it looks like things are returning to normal levels. The last 18 months or so was a stressful time for renters but it looks like its pretty much over. Canada Mortgage and Housing is forecasting a vacancy rate for Calgary in 2008 for rental properties of lease 2 percent but they predict that it could be even higher. In the fall of 2007 the vacancy rate was 1.5 percent. This increase is partly due to a decrease in people moving to Calgary seeking job opportunities and as well many tenants have chosen to purchase rather than continue to rent. Another reason for the increase is that many investors are taking advantage of the high rents they can charge and are placing their properties with rental management companies rather than selling them. In April, 2007 Calgary's vacancy rate was at an all time low at .5 per cent, next to Abbotsford at .6 per cent and then Kelowna at .7 per cent. At the other end of the spectrum was Windsor at 11.6 per cent. Currently the average rental income for Calgary apartments for rent of all sizes is $974 a month which is an increase of $123 a month for this time last year. This amount should stabilize and won't change much through-out 2008 due to the increase in the vacancy rate. Condo rentals that are owned by investors in the downtown area are the most expensive, averaging $1,370 a month for a 2 bedroom unit which are mainly located in the glass and concrete high-rises. The lowest average monthly rent in Canada was Trois-Rivieres at $482 a month and then Saguenay at $491 a month. CMHC says that Calgary being one of the major cities has the highest average rent for a 2 bedroom apartment compared to the other major cities. Second to Calgary is Vancouver and then Toronto being third. And they say that Calgary can handle more because Calgary's annual household income is higher than Vancouver's or Toronto's. Actually the highest average monthly rent was not found in one of the major cities but in a northern Alberta community of Wood Buffalo where the rent for a 2 bedroom unit was $1,681 a month. The rental market in Montreal for 2007 was actually the most affordable out of Canada's five major cities. A lot of people in Calgary feel that it is simply out of reach for many people looking at renting especially those only making $10-$15 an hour or even lower. Not everyone works in the booming oil and gas industry. In fact, many suites are illegal and not fit to live in. However it looks like the West will continue to be the best place to be for landlords. The Western markets clearly out-performed the Eastern markets in 2007 and with the strong economy, continued condo conversions and new construction decreasing this trend is likely to continue to be the place to have your Calgary apartment for rent in 2008. About The Author:
*** Digital Reprint Rights *** *** Author Notification *** We ask that you notify the author of publication of his or her work. Lynn MacKenzie can be reached at: lynn.mackenzie@thephantomwriters.com *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: lynn.mackenzie@thephantomwriters.com
|
Home | Article Distributions | Ghost Writers
Article Marketing Blog | Article Marketing Ebook
Unless Otherwise Noted, All Content On This Site Is:
Copyright © 2001-2008, The Phantom Writers