Calgary’s rental market is projected to recover slightly in 2020, resulting in monthly rent expected to rise 3%, according to a report.
Rentals.ca released its 2020 rental market predictions on Friday, reporting that finding an apartment, house, or townhouse to call home will continue to challenge renters in 2020, mainly in Canada’s larger cities, including Calgary.
According to the report, which includes insight from housing experts from across the county, the average rental rates could increase by 3% year over year on a national basis in 2020.
Here in Calgary, rental prices may go up 3%, while climbing a predicted 4% in Ottawa, 5% in Montreal, 3% in Vancouver, and 7% in Toronto.
“A recovering labour market in Calgary will continue to draw individuals into the area,” said Heather Bowyer, senior market analyst for CMHC, in the release.
“Positive levels of interprovincial and international migration will contribute to rental demand in the city.
- See also:
Calgary’s 2020 rental market predictions
According to Bowler, rent will increase due in part to improvements in market conditions and a decline in vacancy rates.
Condo buildings currently nearing completion in the city will also bring up the overall rental rates, as newer units will likely be pricier than older homes.
“There’s quite a lot of supply in the pipeline in Calgary,” said Andie Daggett, manager of rental market data (Alberta) for Urban Analytics, in the report.
“But because there’s also consistent migration, the supply will be absorbed.”
Daggett said that the Calgary communities of Beltline, Sunnyside, Hillhurst, Inglewood, and Bridgeland are all popular areas for renters.
And while millennials are renting for longer, she believes that that age demographic will be looking to purchase a home in the future — which they’ll have an easier time doing than in other Canadian cities, as the average cost of a home in Calgary is $454,201 — hundreds of thousands of dollars less than in places like Vancouver or Toronto.
“At the end of the day, I believe Calgarians want to buy a home,” she said. “But they are staying in the rental market longer.”
With files from Kayla Gladysz.