Average rent in Calgary increased 6.4% in 2014
January 21, 2015
The average rent in Calgary increased 6.4 per cent in Oct. 2014 from the previous year, according to the Rental Market Report by the Canada Mortgage and Housing Association (CMHC).
Key factors for increased rent
The report noted that one key factor to the increase in rent was the rising demand for rental housing in the Calgary Census Metropolitan Area (CMA). High demand was largely attributed to a record year of net migration in 2013. With 45,168 new immigrants, rental demand in Calgary was strong. Additionally, Calgary welcomed 35,000 new migrants in 2014. Although there was also an increase in supply, the vacancy rate remained low at 1.4 per cent, inadvertently leading to an increase in rent.
Apartment rental rates by area
Rent for all apartment units rose 6.4 per cent to $1,213. The highest average rent for a two-bedroom unit was in the downtown area, with the average rent being $1,459. This is followed by Beltline with an average rent of $1,441. According to the report, rent tends to be higher in these two areas because renters are "willing to pay a premium for the amenities and relative location advantages of units contained with these zones."
The most affordable area for two-bedroom units are Southeast, with an average rent of $651. Chinook was the second most affordable area at $1,093 per month. However, Chinook at the largest increase in rent, up 8.7 per cent from Oct. 2013. The average cost of rent in this area rose from $1,180 to $1,215.
Private rows
Similar to purpose-built apartments, rental rates for row units also increased in Oct. 2014. Although the vacancy rate for private rows in the Calgary CMA rose from 0.7 per cent to one per cent, it is still low by historical standard and therefore average rents have increased. The largest increase in rent was in the Northwest zone; two-bedroom units increase 8.3 per cent to $1,209. The highest rent, however, is in the Southwest zone at $1,346 for a two-bedroom unit. .
The most affordable area for row units is Fish Creek, with an average rent for a two-bedroom unit being $1,200. This is followed by the Northwest zone at $1,209.