Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

December 16, 2014 08:15 ET

October 2014 Rental Market in Edmonton

EDMONTON, ALBERTA--(Marketwired - Dec. 16, 2014) - The rental apartment vacancy rate(1) in the Edmonton Census Metropolitan Area (CMA) was 1.7 per cent in October 2014, up from 1.4 per cent in October 2013, according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation.

"The slight uptick in the vacancy rate in the Edmonton CMA was the result of the supply of rental apartments rising faster than the demand for units. Although the vacancy rate moved slightly higher, it remained low by historical standards as demand for rental housing in Edmonton continued to be supported by increasing employment, rising wages, and elevated migration," said Christina Butchart CMHC's Senior Market Analyst for Edmonton.

On the basis of a sample of structures common to both the 2013 and 2014 surveys(2), the average two-bedroom rent increased by 6.1 per cent in the Edmonton CMA. This is the highest level of same-sample rent increases since 2008. All zones in the Edmonton CMA where data was available posted an increase in two-bedroom same-sample rents, ranging from 4.1 per cent in the University area to 9.1 per cent in Castledowns.

Most areas of the Edmonton CMA posted an increase in the apartment vacancy rate. The largest increase in the vacancy rate occurred in Strathcona County, where the rate increased from 0.3 per cent in the fall of 2013 to 1.8 per cent in October 2014. The apartment vacancy rate in the Edmonton CMA ranged from 0.6 per cent in West Jasper Place and Spruce Grove to three per cent in North Central Edmonton.

Accounting for both new and existing structures, the average rent for a two-bedroom apartment was $1,227 per month in October 2014. North Central Edmonton posted the lowest average rent for a two-bedroom apartment, at $1,003 per month. This relatively lower rent coincides with a vacancy rate among the highest across zones. In contrast, two-bedroom rents in St. Albert and Downtown were among the highest in the CMA, averaging $1,355 and $1,330 monthly, respectively.

CMHC's Fall Rental Market reports also include information on the secondary rental market for some centres. The vacancy rate for rental condominium apartments in the Edmonton CMA was 2.3 per cent in October 2014 compared to 1.1 per cent in the same period of 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 National 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/984151a.pdf

Contact Information

  • Market Analysis Contact:
    Christina Butchart, Senior Market Analyst
    (780) 423-8729
    cbutchar@cmhc.ca

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