June 29th , 2012
The Canada Mortgage and Housing Corporation’s 2012 Spring Market Rental Market Survey was released.
What is the News for Alberta Landlords?
It’s good news for Alberta landlords. For the urban centers the vacancy rate was 4.7% in April 2011. This decreased to a vacancy rate of 3% in April 2012.
That’s Great News!
According to the CMHC’s senior Calgary market analyst, Richard Cho, fifteen of the largest seventeen markets in Alberta saw a decrease in vacancy rates.
According to Cho, “The reduction in vacancies was largely attributed to robust job growth and rising migration.” Cho explained “the resulting household formation contributed to rental demand.”
What About Calgary?
Cho stated the apartment vacancy rate in April 2012 declined compared to last year. In April 2011 it was 3.4%. In April 2012 is declined to 2.5%
According to the CHMC’s senior market analyst for Edmonton the news is even better. In 2011 the vacancy rate was 4.7% and dropped to 2.7% in 2012! Christina Butchart said the 2012 Edmonton vacancy rate is the lowest since Spring, 2007.
Exactly Why are Rents Going Up?
The decrease is largely due to a strong economy, more jobs, and increased migration flows. Cho stated it’s all about supply and demand. He added that as vacancy rated drop and there is stronger demand for rental properties, rental rates are also going up.
Can You Provide Me With and Example on How Rents Are Rising?
According to Cho, rents increase 5% from 2011 to 2012 for a two bedroom rental in Calgary. In Edmonton, rents are up 2.2% compared to last year.
It looks like the future is bright for Alberta landlords!