Average apartment rental rates in the Calgary and Edmonton regions have risen in the past year, according to a new report released Wednesday by Canada Mortgage and Housing Corporation.
The federal agency said the average apartment rent in the Calgary census metropolitan area was $1,181 in October 2019 which was up 1.7 per cent from the previous year.
The Edmonton census metropolitan area saw the average rent rise by 0.9 per cent to $1,144.
Calgary’s apartment vacancy rate remained unchanged at 3.9 per cent while Edmonton’s decreased to 4.9 per cent from 5.3 per cent the previous year.
“The vacancy rate was unchanged in Calgary as additions to the rental universe were offset by strong rental demand,” said Heather Boyer, CMHC market analyst.
“The vacancy rate (in Edmonton) moved lower with a slight increase in rents and growing rental supply,” said Pershing Sun, CMHC market analyst.
The CMHC said the national vacancy rate for rental apartment units declined in 2019 for a third consecutive year to 2.2 per cent, its lowest level for all-bedroom types since 2002. It was 2.4 per cent in 2018.
“The national vacancy rate for purpose-built rental apartments declined for a third consecutive year in 2019, as strong rental demand continued to outpace growth in supply,” said Bob Dugan, CMHC’s chief economist, in a news release “Low vacancy rates in major centres underscore the need for increased rental supply to ensure access to affordable housing.”
The CMHC said it conducts the annual Rental Market Survey in October to gauge how economic, demographic and other factors impact Canada’s rental markets. The survey is based on purpose-built structures with three or more rental units in urban areas with populations of over 10,000.
“Rental demand remains elevated in Vancouver (1.1 per cent) and Toronto (1.5 per cent) with vacancy rates in these markets remaining amongst the lowest in Canada in 2019,” said the report. “The Montréal Census Metropolitan Area (CMA) vacancy rate reached a 15-year low (1.5 per cent), driving the national decline. The vacancy rate also declined in Halifax (1.0 per cent).
“Vacancy rates in most other CMAs remained stable, including the major Prairie markets of Calgary (3.9 per cent), Regina (7.8 per cent), and Winnipeg (3.1 per cent).”
The report said the average rent for a two-bedroom apartment unit increased in Vancouver (4.9 per cent), Montréal (3.4 per cent), Calgary (2.2 per cent) Toronto (6.1 per cent) and Halifax (3.7 per cent).
“The average two-bedroom apartment rent was highest in Vancouver ($1,748) and Toronto ($1,562). Calgary ($1,305) and Halifax ($1,202) remained above the national average, while Montréal ($855) continued to exemplify the relatively lower rent levels generally seen in the province of Quebec,” added the CMHC.
It said the average vacancy rate for rental condominium apartments across surveyed centres declined to one per cent from 1.4 per cent.
“This decline comes despite strong growth in the supply of rental condominium units since 2018 and is lower than the vacancy rate for purpose-built rentals,” explained the report.
“Vancouver (0.3 per cent), Calgary (0.9 per cent) and Toronto (0.8 per cent) reported vacancy rates below the national average. Average two-bedroom condominium apartment rent levels were highest in Toronto ($2,476), Vancouver ($2,045) and Hamilton ($1,896).”
Mario Toneguzzi is a business reporter in Calgary.
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