CMHC (Canada Mortgage and Housing Corporation) released their semi-annual rental market report today showing that vacancy rates have risen (no surprise there). Highlights from the report:
- Average vacancy rate for all urban centres in Alberta increased from 4.6% in April 2009 to 6% in April 2010
- The highest vacancy rate in the province was in Grande Prairie at 14% (up from 8.5%)
- The average provincial rent was $937/month, down from $962 a year earlier
- Expect to pay close to $2000/month in Fort Mac and $650 in Medicine Hat
- Edmonton’s vacancy rate is 5.2% up from 4.7% a year ago
- Calgary’s vacancy rate is 5.3% up from 4.3%
- The average two bedroom suite in Edmonton rents for $994/month, down from $1059 a year ago (Calgary only dropped $24 to $1082)
The rise in vacancy rates was due to employment losses among the primary age group of renters, inter-provincial migration losses, and more affordable home ownership options (lower interest rates and prices).
“The average provincial rent was $937/month, down from $962 a year earlier”
This is an interesting point because the REITs in their quarterly reports show a larger decrease (>~10%).
Also where would one go to find historic sales history on a property?
Thanks for reminding me the reports are out. No surprises, but I have seen things strengthening in Edmonton. Boardwalk has dialed back the incentives, and that’s a good sign for me. I’m still having no real problems with our properties, although I have a vacancy in Kelowna coming up at the end of August.
This would explain all the “first month free” signs you see around town right now.
Watch for those starting to come down.
I highly doubt that. I see boardwalk starting put up “New low rates” signs up again. Rental market is still overpriced for what is being offered. With this new data and the trends forming it looks like renters, of the few that will be, will have the upper hand in haggling out a deal.
There will probably be more houses going up for rent as the owners will try to wait out the decline in housing prices.
On average over the past decade the vacancy rate in Edmonton is ~3%.
The ‘new low rates’ are just normal rents for the climate. The days of ‘first month free’ are on their way out.
Read the report yourself and see that prices and vacancy rates for several housing types (like 3bed+) have improved.
It is a little surprising to see an increase in vacancy rates with stricter mortgage requirements. That generally forces would be buyers to rent instead, and drives the vacancy rate lower. I think what we are seeing is that the economic conditions are so bad, that people are actually moving in with parents and doubling up. These extreme trends usually happen only during very difficult economic times. Nevertheless, a 6% vacancy rate is something most markets here in the states would be very happy to see.