Calgary continues to set records when it comes to rental rate hikes and vacancy rates — putting additional pressure on those looking to put a roof over their heads.
Rental website Zumper recently released its Canadian National Rent Report which analyzed hundreds of thousands of listings last month to examine median rent prices across the 23 largest cities in the country.
Calgary was ranked as the ninth most expensive rental market in the nation with prices of one and two bedrooms settling at medians of $1,880 and $2,200 respectively.
“Prices have just really skyrocketed,” Crystal Chen with Zumper told Global News.
Chen said while the year-over-year national rates for both categories went up about 15 per cent the last two months, Calgary’s rose 27 per cent and 26 per cent. She credited a number of factors.
“I think the migration into Alberta has been unusually high,” Chen pointed out. “Really good job opportunities. Employment rates in Alberta reached a record high since 2019 and also there has been a return of students to full time learning on campus.”
Chen added a return to renting instead of owning, due in large part to higher interest rates, has also played a role in bringing down vacancy rates to lows not seen in almost a decade.
“Calgary is currently at 2.7 per cent (overall vacancy rate) falling from five per cent,” she said. “So right now it’s the lowest vacancy rate since 2014.”
Calgary renter Astrid Nickerson is living Calgary’s increasingly grim rental reality. She moved into an apartment complex in the city’s southeast last year and has now received her first rate hike.
“I was paying around $1,200 and now I’m paying $1,500,” she told Global News.
“It’s extremely difficult. I’m a disabled, single mom so I live off of different social supports and this is my first year after leaving a shelter and abusive relationships. It’s been challenging for sure.”
Nickerson says she’s grateful it wasn’t more — especially given the hikes many other Calgary renters have been handed — but she’s had to really keep track of every penny she’s spending.
“I’ve just kind of been going to the food bank more and cutting back on different things like taking my son out places and stuff,” she said. “Which is definitely hard, but we’ve figured out how to make due at least.”
What’s ahead for Calgary rental prices?
According to Zumper, rental rates usually drop along with temperatures, but not usually when the housing market is this hot and interest rates are this high.
“Potentially rents in Calgary could see a dip around November through the colder months since not a lot of people want to move in Canada during the winter months,” Chen pointed out. “So if you’re a renter and you’re looking for a good deal — winter is definitely the time to do it.”
“But I don’t expect rents in Alberta to drop drastically anytime in the next year.”
Edmonton also saw its rental rates rise, but in line with the national rate jump of 14 per cent. Calgary renters in search of a reprieve could look to the provincial capital or consider locking-in leases for a longer period.
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