Two surprising Alberta cities see rent prices rise as others keep dropping

While the largest cities in Alberta continue to experience a decline in rent prices, two spots in the province are seeing a rise in their prices.

According to the latest National Rent Report from Rentals.ca and Urbanation, most cities in Alberta are seeing a year-over-year decline in rent, with just two spots kicking that trend and seeing a rise.

The average asking price for all residential properties in Canada declined 3.1 per cent year-over-year in November to $2,074, marking the 14th consecutive month of annual decreases.

A bunch of cities in Alberta are seeing annual decreases, with Airdrie leading the pack at $1,418 for a one-bedroom, a seven per cent price drop year-over-year. Its total average came out to $2,024.

Calgary followed at $1,539 for a one-bedroom, a 5.8 per cent price drop year-over-year. Its total average came out to $1,888, while Edmonton came in at $1,289 for a one-bedroom, a 4.9 per cent price drop year-over-year. Its total average came out to $1,616.

Fort McMurray saw the fourth largest decline at $1,178 for a one-bedroom, a 1.8 per cent price drop year-over-year. Its total average came out to $1,391, and Medicine Hat landed at $1,223 for a one-bedroom, a one per cent price drop year-over-year. Its total average came out to $1,394.

Aerial view of Lethbridge, Alta. (Kent Raney/Shutterstock)

The two Alberta cities that are seeing rent increases may be a surprise to some, with Red Deer seeing a 0.2 per cent year-over-year increase for a one-bedroom costing $1,240 a month. Its total average came out to $1,562.

Lethbridge has seen the most significant rent increase out of all the cities in the report, with a 1.4 per cent rise year-over-year for a one-bedroom costing $1,365 a month. Its total average came out to $1,577.

The report added that rents have now fallen $100 below last year’s level and are 4.6 per cent lower than two years ago. Despite the extended downturn, average asking rents remained 3.4 per cent higher than three years ago.

North Vancouver took the top spot as the most expensive city in the country, with the average cost of a one-bedroom running at $2,493.

At the provincial level, average apartment rents declined in every region except Saskatchewan, which saw a 0.5 per cent increase,  and Nova Scotia, which saw a 1.8 per cent increase. The sharpest declines were recorded in B.C. at 6.4 per cent, Alberta at 4.3 per cent, and Ontario at 3.5 per cent.

“The rental market in Canada continues to face short-term challenges as demand pulls back due to a flattening in population growth and continued economic uncertainty, while at the same time supply ramps up as a record number of apartments finish construction,” said Shaun Hildebrand, president of Urbanation. “In this environment, rents can be expected to continue trending down in the next few months during the typical seasonal slowdown.”

You can view the full national rent report online.