Calgary Rentals Market Update October 2012

Calgary Rentals Market Update October 2012

• Apartment vacancy rates in Calgary’s metropolitan area declined to 1.3 percent in October 2012 from 1.9 percent in October 2011.

• A growing number of jobs and higher average incomes supported by the booming economy of the Calgary metropolitan area have continued to attract inbound workers, causing large demand for rental apartments.

• Supply of rental units have decreased, contributing to the lower vacancy rates seen in most parts of Calgary during 2012.

• Of all the major urban centres in Canada, Calgary ranked 3rd for the lowest rentals vacancy rates, behind Thunder Bay, Ontario at 1.1 percent and Regina, Saskatchewan at 1.0 percent.

Inner City Areas Rental Vacancy Rates Drop the Most

• Areas closest to the downtown Calgary core have experienced the largest drops in vacancy rates

• Downtown vacancy rates dropped from 1.0 percent in October 2011 to 0.5 percent in October 2012!

• Northwest vacancy rates dropped 1.6 percent year over year

• Chinook vacancy rates dropped 1.8 percent year over year

• Other centres saw a 2.2 percent drop in vacancy rates year over year

Apartment Rental Vacancy Rates – October 2012

• 3 bedrooms or more saw the largest drop from 3.3 to 1.5 percent year over year

• 2 bedroom units dropped from 2.0 to 1.5 percent year over year

• One bedroom and bachelor units dropped from 1.9 to 1.1 percent year over year

Apartment Rental Costs – October 2012

• Average rent costs for apartments have increased as the vacancy rates in Calgary decline

• October 2012 two bedroom rent cost average of $1,150

• Downtown Calgary and the beltline areas had the highest average rental costs at $1,240 and $1,222

• In general, renters are willing to pay more than usual for downtown and beltline apartments because of the prime inner city location – many of these renters work for corporations in the downtown business core

• Southeast Calgary two bedroom average rental cost was the lowest in the city at $998

• Other centres two bedroom average rental cost joined southeast Calgary as one of the lowest at $1,005

**Source - Canadian Housing Mortgage Corporation

Owning Versus Renting

Are you looking to move on from renting? Read these 7 Reasons Why Owning is Better than Renting for more information on the benefits of owning a home!

Also, be sure to check out our 5 Step Home Buyers Guide for an easy to follow framework for buying a home in Calgary!

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