Rental price predictions show that Calgary is currently experiencing a big downturn. And according to this forecast, rents are expected to rise, and home listings, on the other hand, will fall.
Lisa MacGregor reports.
In the face of this economic downturn which Calgary is currently experiencing, it is very likely that renters in this area would be charged a higher amount in rent this year.
Recent reports from Rentals.ca predicts a whopping four percent increase on the average rent in Calgary.
Matt Danison, Rental.ca’s CEO said: “You’d think there’d be a correlation — if home prices are declining, that we’d see maybe the decline in rent rates as well.”
“Unfortunately, that’s not the case. There’s a lot of pressure coming from the rental market from different angles.”
On average, two-bedroom apartments in Calgary will cost rent of around $1,400. Reports have it that it likely that Edmontonians would pay $1,250, which is $150 short of the real price.
According to reports, the city of Toronto still holds the top-spot for expensive rents all over Canada, followed by Vancouver.
As a result of the constant decline in the value of houses in the province, a lot of people are renting rather than buying homes. Danison said.
Danison went further to say that people with the intent of buying homes become discouraged by not only the stress test to make them eligible but also the high rates
He said “Buying a home, jumping into that, is not as attractive as maybe it once was.” He also said that the current generation just wants a flexible and comfortable rather than secure situation as their parent’s generation.
According to Danison, another huge cause of the hike in rent prices is as a result of more people moving to inexpensive cities. And because they’re immigrants, it is very likely that they’ll rent their first home. In addition to this, vacancy rates are falling all over Alberta.
The vacancy rate in Calgary and Edmonton have fallen from six percent to four percent and seven percent to 5.3 percent respectively.
If you’re thinking of renting an apartment in Calgary, then you should know what to expect; because it is fast becoming more and more expensive due to increased competition.
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