Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

December 16, 2014 08:15 ET

October 2014 Rental Market in Calgary

CALGARY, ALBERTA--(Marketwired - Dec. 16, 2014) - The rental apartment vacancy rate(1) in the Calgary Census Metropolitan Area (CMA) was 1.4 per cent in October 2014, up from one per cent in October 2013, according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation.

"While elevated net migration has continued to support rental demand in Calgary, additions to the rental stock have resulted in a higher apartment vacancy rate. Despite the increase from 2013, the vacancy rate remained low by historical standards, resulting in continued upward pressure on rents," said Felicia Mutheardy, CMHC's Senior Market Analyst for Calgary.

On the basis of a sample of structures common to both the 2013 and 2014 surveys(2), the average two-bedroom apartment rent rose 5.9 per cent in Calgary. Same-sample rents for one-bedroom units recorded a 7.1 per cent increase, while rents for three or more bedroom units rose 5.6 per cent.

Within the Calgary CMA, the apartment vacancy rates among zones in October 2014 were either relatively similar to or higher than the results from the October 2013 survey. Within the City of Calgary, the vacancy rate increased to 1.4 per cent in 2014 from one per cent in October 2013. Similarly, the vacancy rate in Other Centres outside of City limits also reported a higher vacancy rate moving to 1.2 per cent in this year's survey from 0.9 per cent in October 2013. The Downtown and Southeast zones reported among the lowest vacancy rates compared to all zones within the CMA at 0.8 and 0.9 per cent, respectively.

In the Calgary CMA, the average two-bedroom apartment rent in new and existing structures was $1,322 per month in October 2014. The highest average two-bedroom rents remained in the Downtown and Beltline zones at $1,459 and $1,441 monthly, respectively. Rental units within these two zones tend to command higher rents as renters are often willing to pay a premium for the amenities and relative location advantages of units contained within these zones. The lowest average two-bedroom rent was found in Other Centres outside of City limits at $1,104 per month in October 2014.

CMHC's Fall Rental Market reports also include information on the secondary rental market for some centres. In the Calgary CMA, the rental condominium vacancy rate was 1.1 per cent in October 2014, compared to one per cent in 2013.

CMHC recognizes that there is demand to fill information gaps with respect to Canada's housing markets. To address this need CMHC has, for the first time, asked property managers to provide information on the total number of condominium apartment units owned by people whose permanent residence is outside of Canada as part of its survey. The condominium foreign investment information was collected in 11 Census Metropolitan Areas (CMA) in Canada. They include: Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Toronto, Ottawa, Montréal and Québec.

The results of this additional question indicate that the percentage of foreign investment in condominiums in Victoria is 1.1 per cent, Vancouver 2.3 per cent, Calgary 0.2 per cent, Edmonton 0.1 per cent, Saskatoon 0.3 per cent, Regina 0.1 per cent, Winnipeg 0.1 per cent, Toronto 2.4 per cent, Ottawa 0.7 per cent, Montréal 1.5 per cent and Québec 0.6 per cent. With respect to location, the city core in Canada's largest rental markets (Montreal, Toronto and Vancouver) experienced larger foreign condominium ownership. (More details can be found on page 5 of the report).

Data related to today's report is also available from CMHC's Housing Market Information Portal at https://www03.cmhc-schl.gc.ca/hmiportal/en/

Rental Market data is also available in English and French at the following link: Fall Rental Market Report

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and advice to Canadian governments, consumers and the housing industry.

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(1) The survey is based on privately-initiated rental apartment structures of three or more units.

(2) Year-over-year comparisons of average rents can be slightly misleading because rents in newly built structures tend to be higher than in existing buildings. Excluding new structures and focusing on structures existing in both the October 2013 and October 2014 surveys provides a better indication of actual rent increases paid by tenants.

Additional data is available upon request

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A table is available at the following address: http://media3.marketwire.com/docs/984109a.pdf

Contact Information

  • Market Analysis Contact:
    Felicia Mutheardy, Senior Market Analyst
    (403) 515-3003
    fmuthear@cmhc.ca

    Media Contact:
    Charles Daniel Mainville, Senior Communications Consultant
    (403) 515-2915
    cdmainvi@cmhc.ca