Calgary rental vacancy rate declines in October from year ago

CALGARY – The rental apartment vacancy rate and average rent in the Calgary census metropolitan area have both fallen in the past year, according to a report released Thursday by Canada Mortgage and Housing Corp.

In its Rental Market Survey, the agency said the Calgary CMA vacancy rate in October was 3.6 per cent compared with 5.3 per cent the same time last year.

Meanwhile the average rent per month for a two-bedroom apartment had dropped to $1,069 from $1,099 in October 2009.

Nationally, the average rental apartment vacancy rate in Canada’s 35 major centres decreased slightly to 2.6 per cent in October from 2.8 per cent in October 2009.

“The economic recovery that has taken place over the past year has boosted demand for both rental and ownership housing,” said Bob Dugan, chief economist with the CMHC. “High levels of immigration have supported demand for rental housing, thus pushing the vacancy rate lower.

“In addition, improving economic conditions have likely boosted household formation which, in turn, has added to the demand for rental housing. These two factors combined, have put downward pressure on the vacancy rate.”

On a provincial basis, the highest vacancy rates were in Alberta (4.6 per cent) and New Brunswick (4.5 per cent).

The Canadian average two-bedroom rent was up from $836 in 2009 to $860 in 2010. The highest average monthly rents were in Vancouver ($1,195), Toronto ($1,123), Calgary ($1,069), Ottawa-Gatineau (Ontario part, $1,048), Victoria ($1,024), and Edmonton ($1,015). Of all the major centres, only these six had average rents at or above $1,000.

CMHC’s fall Rental Market Survey also found that the rental apartment availability rate in Canada’s 35 major centres was 3.8 per cent in October, down from 4.1 per cent in October 2009. A rental unit is considered available if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move and a new tenant has not signed a lease.

In the Calgary region, the availability rate was 5.8 per cent, down from 7.5 per cent a year ago.