Condo Apartments in Edmonton’s Rental Market

By Amy Hancock
December 03, 2014

The private rental of condominium apartments make up a major portion of Edmonton’s secondary rental market. According to the Canadian Mortgage and Housing Corporation’s Housing Market Outlook (CMHC), almost one-third of condo apartments in Edmonton were in the rental market in the spring of 2014.

Increases in employment prospects, rising income levels, and record-high migrations to Edmonton from across Canada and other countries have created an elevated demand for rental housing in the capital region. The influx of newcomers has also caused a decline in vacancy rates and an increase in average rental rates. According to the report, the vacancy rate for condo apartments is hovering just over 1 per cent, indicating a strong demand for this kind of housing and allowing private condo apartments to become serious competitors in the rental market.

Edmonton's-rental-market-body(880x500)

Condo owners are benefiting by putting their units on the rental market. Market reports issued by Rental Housing Business Magazine showed that the average apartment condo unit sold for $130,850 in 2013. The report stated that this number was brought up substantially by newly constructed buildings. The average price for a walk-up apartment unit, built prior to 1990 was priced at a low $110,300. Using the overall average cost of an apartment condo, a mortgage with a 25 year amortization period and 3 per cent interest rate, a condo owner would pay about $550 per month. The average rent in Edmonton is more than double that.

According to the report, the average rent for a two-bedroom apartment in Edmonton is $1,141, expected to increase to $1,225 by next year. Rental rates in more sought-after areas near the University of Alberta or downtown average $1,260. Private condo rentals are priced slightly higher than those rates as they usually come with higher-end interior features and more building amenities than purpose-built rentals.

Even after applying condo fees, utilities and other housing costs an owner of a condo-apartment could turn a profit, build equity and see a high return on investment by placing their unit on the rental market in Edmonton.

About Amy Hancock

Amy is a freelance writer and communications professional. Her insights and extensive familiarity with Edmonton make her a great guide for getting to know local communities.

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