Calgary and Edmonton see decade-low housing vacancy rates
In most major markets across the country, strong rental demand continued to outpace supply throughout 2023, resulting in tighter markets and lower affordability.
That’s according to a recent report from the Canada Mortgage and Housing Corporation (CMHC).
The national vacancy rate for purpose-built rental apartments reached a new low at 1.5%
and average rent growth reached a new high at 8% as rental conditions continued to tighten in most rental markets, including Alberta’s two biggest cities.
“The vacancy rates and rent increases we are observing are further evidence the current level of rental supply in Canada is vastly insufficient,” Kevin Hughes, CMHC’s deputy chief economist, said in a statement.
“The need to increase this supply is urgent.”
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In Calgary, the vacancy rate in the purpose-built rental market was at 1.4%, with the average rent for a two-bedroom sitting at $1,695.
That city’s condominium apartment had a vacancy rate of 1% with a $1,819 price tag for average rent.
Further north in Edmonton, the vacancy rate in the purpose-built rental market was slightly higher than in Calgary at 2.4% and an average two-bedroom rent price of $1,398.
In the condominium rental market, the vacancy rate was 2.5%, with the average two-bedroom rental sitting at $1,359.
In comparison, the national vacancy rate for Canada’s primary rental market reached a new low of 1.5% in 2023, and the secondary rental market, or rented condominium market, also tightened in 2023.
The average vacancy rate for rented condominiums in the 17 census metropolitan areas surveyed by CMHC fell to 0.9% in 2023.
Both Calgary and Edmonton, CMHC saw the sharpest rise in rents.
Previous predictions have also said that Alberta’s two largest cities should expect more price growth for rentals throughout 2024.