Rental Vacancies Spike in Calgary

The news of a spike in the available rental units in Calgary came in from the provincial Apartment Association. CHQR, a news & sports radio station in Calgary, reports that the jump is due to the fact that many tenants have purchased homes.

The rate which was .5% only 2 years ago is now up to 4%. The president of the Apartment Association, Gerry Baxter, told CHQR that rental rates are not expected to drop as a result of the new availabilities. The expenses realized by landlords have not dropped therefore the amount that they must collect in rent will likely remain the same.

The economic growth in Calgary over the past decade may reflect the new numbers. As workers migrate to the province in order to fill job positions, they require immediate housing. Rental condos have filled the need in the past. Now, as the worker becomes an established resident of the area, purchasing a home locally is a natural progression. The fact that the rentals have not systematically be filled at the same rate may raise questions about a changing workforce, economy or the number residents relocating in the area.

 

In other communities that have experienced higher vacancy rates, solutions have included the reduction of rental rates or renovation of units to make them more appealing. Other options have been to convert the rental back to a primary residence where the condo or house is sold to become owner occupied. The real estate market conditions play a large role in a landlord’s decision to sell the property. If they feel that the sale price will be too low, they may choose to stay with the rental and just put up with a few months of vacancy.