Calgary rental market tightens, low vacancy pushing rates higher
Posted Apr 5, 2024 9:52 am.
It’s becoming harder and harder to find an affordable place to rent in Calgary, and experts now say rates in the city are giving prices in Toronto a run for their money.
The Canada Mortgage and Housing Corporation says renting a home in the city will become more difficult and more expensive in the next two years.
It was only a year ago the average two-bedroom apartment in Calgary went for $1,695. Now properties with the same specs are expected to reach $1,859 this year, and skyrocket top $1,922 in 2025.
The national housing agency says despite a growing rental universe, the vacancy rate for purpose-built rental apartments is focused to edge lower for the next couple of years.
READ MORE: Home prices could hit peak levels by next year, set new highs in 2026: CMHC
That means rentals will be in short supply thanks, in part, to the province’s Alberta is Calling interprovincial migration campaign, and less mobility into home ownership.
“Housing starts in Canada are expected to decline this year, before recovering in 2025 and 2026, which reflects the delayed effects of higher interest rates on new construction,” explained CityNews business editor Kris McCusker. “Despite an increase in rental housing in the market last year, supply is not forecast to keep up with demand and that could also mean higher rents and lower vacancy rates in the coming years.”
Ottawa’s recently-announced cap on student visas isn’t expected to have the desired effect on rental demand, according to the CMHC.
The CMHC believes rents in Calgary will continue to face upward pressure as rental demand outpaces supply in the short term, while new higher-priced rental units added to our rental universe will contribute to higher average rents.
