Apartment rents in Calgary jumped almost six per cent during the past year despite weakening demand led by the slumping energy sector.
Canada Mortgage and Housing Corporation, in its spring market survey, said same sample rents for a two-bedroom apartment rose 5.9 per cent in the 12 months to April 2015. The average monthly rent for a two-bedroom apartment grew to $1,319, eclipsed only by Vancouver — at $1,345 — among the major markets surveyed by CMHC. The average two-bedroom rent in Toronto was $1,269, it said.
Meanwhile, the Calgary-area vacancy rate grew to 3.2 per cent in April, more than double the 1.4 per cent rate of a year earlier.
The CMHC report confirmed rent increases were largely attributed to stronger demand in the latter half of 2014.
The current rate of 3.2 per cent has historically reflected a supply and demand balance.
New condo construction in the past one to two years has decreased rental demand as more renters are buying homes.
Canmore posted Alberta’s lowest vacancy rate, at zero per cent. Cold Lake and Wood Buffalo had the province’s highest vacancy rates at 22.8 and 22.3 per cent respectively.