HOUSING MARKET INFORMATION RENTAL MARKET REPORT Calgary CMA CANADA MORTGAGE AND HOUSING CORPORATION Date Released: 2020 The overall vacancy rate*... !Northwest UNCHANGED at ( Below CMA (!Northeast % Similar to CMA 3.9 Above CMA !North Hill Downtown ( Southwest (! (! (!Beltline * The average rent is ... (!Chinook (!Other Centres Below CMA (!Southeast $1,181 Similar to ProvinceCMA Above ProvinceCMA Fish Creek UP by 1.7% (! PRIMARY RENTAL MARKET (by bedroom type) Bachelor One bedroom Two bedroom Three or more bedrooms “The vacancy rate was % % % % unchanged in Calgary as additions to the rental 2.5 3.5 4.3 4.8 universe were offset by Vacancy Rate Vacancy Rate Vacancy Rate Vacancy Rate strong rental demand.” $ Avg. $ Avg. $ Avg. $ Avg. 899 Rent 1,080 Rent 1,305 Rent 1,255 Rent Heather Bowyer Senior Analyst *CMHC collects data on the primary and secondary rental market annually, in the fall. These data refer to the primary rental market, which only includes rental units in privately-initiated apartment structures containing at least three rental units. The secondary rental market covers rental dwellings that were not originally purpose-built for the rental market, including rental condominiums. The primary vacancy rate and rent level is based on all surveyed structures, while the rent increase is based only on structures common to the survey sample in both the current and previous year. Rental Market Report - Calgary CMA - Date Released - 2020 Highlights Figure 1 The apartment vacancy rate in the Calgary CMA was 3.9%, unchanged Apartment vacancy rate unchanged from October 2018. Vacancy rate (%) Oct-18 Oct-19 7.0 The average apartment rent was $1,181 in October 2019 compared 6.0 to $1,149 last year. 5.0 4.0 In rental structures common to both the October 2018 and 2019 3.0 surveys, apartment rents increased 2.0 by 1.7% this October compared to 1.0 the previous year. 0.0 Bachelor One Bedroom Two Bedroom Three or Total The share of rental apartment more Bedrooms condominiums increased to 37.6% of the condominium universe, Source: CMHC Rental Market Survey contributing to overall rental supply. first ten months of 2019, there were Tenant mobility highest 34,170 jobs added compared to the Vacancy rate unchanged same period last year, an increase of in outlying areas despite expansion to 4.1%. As well, the majority of new The tenant turnover3 rate, a measure jobs added, over 80%, were in full- rental universe of tenant mobility, was 33.3% in time positions. Over the same time October 2019 a decrease compared According to the results of CMHC’s period, employment levels among the to October 2018. Turnover rates Rental Market Survey, the Calgary population aged 15 to 24 increased range from a high of 44.1% in centres Census Metropolitan Area (CMA) 8.2%, which helped to lift rental outside the city of Calgary to 24.2% in apartment vacancy rate1 was 3.9% demand as this cohort is typically the North Hill survey zone. Centres in October 2019, unchanged from associated with renter households. outside the city of Calgary had higher October 2018. Between the third According to the 2016 Census, vacancy rates, resulting in more rental quarter of 2018 and the second households where the age of the choices, which can partially explain quarter of 2019, there were 1,464 primary maintainer was between the increasing mobility of tenants in newly completed apartment rental 15 and 24 had the highest proportion those areas and higher than average units, an increase of roughly 75% of renter households at 78%2. turnover rates. compared to the same time period A recovering labour market in last year. This helped to expand the Calgary has contributed to increases Same-sample rents apartment rental universe which in interprovincial migration, which has post moderate growth added 1,122 units, an increase of 2.8% supported rental demand. Following from last year. However, demand two consecutive years of declines, net The same-sample two-bedroom 4 remained strong as the amount of interprovincial migration was positive apartment rent increased by occupied units also increased. in 2018 as more individuals moved 2.2% in the October 2019 survey, to the area than left to another compared to 1.5% in October 2018. Improving labour market province. As well, quarterly migration Increasing demand for rental units conditions continue to flows for Alberta show that this trend from strengthening employment continued in the second quarter of growth and improving interprovincial drive rental demand 2019, with the level of in-migrants migration, together with a low vacancy A strengthening labour market increasing compared to the same rate, have been contributing to the helped to support rental demand in quarter in 2018. rise in rents in Calgary. the Calgary CMA. Throughout the 1 Based on privately-initiated rental apartment structures of three or more units. 2 2016 Census, Statistics Canada. 3 A unit is counted as being turned over if it was occupied by a new tenant in the past 12 months. A unit can be counted as being turned over more than once in a 12-month period. This includes tenants who move into a different unit in the same building during this time period. 4 When comparing year-over-year average rents, the age of the building needs to be taken into consideration because rents in newly-built structures tend to be higher than in existing buildings. By comparing rents for units that are common to both 2018 and 2019 October Rental Market Surveys, we can get a better indication of actual rent increases paid by most tenants. 2 Rental Market Report - Calgary CMA - Date Released - 2020 Apartment rents increased at a slower pace in the City of Calgary Figure 2 at 1.7% compared to other external centres in the CMA at 2.8%. The Two bedroom apartment rental rates increase majority of the rental universe in other centres of the CMA are newer Percentage change of average two-bedroom rent builds, built in 2000 or later, which 8,0 tend to command higher rents. 6,0 When accounting for both new and 4,0 existing structures, the average two- bedroom rent was $1,295 in October 2,0 2019 compared to $1,262 in October 0,0 2018. The Downtown and Beltline -2,0 survey zones posted the highest two- bedroom apartment rents at $1,381 -4,0 and $1,431, respectively, due to their -6,0 desirable locations in the city centre. -8,0 -10,0 Growth remains 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 strong in the secondary Source: CMHC Rental Market Survey rental market Note: The percentage change of average two-bedroom rent is based on structures that were common to the survey sample in both October 2018 and October 2019. Investor owned condominium apartments provide an additional Figure 3 source of rental units as well as competition to the purpose-built Rental universe expands in purpose built rental market. According to the and condominium apartment markets October 2019 survey, there were 25,896 condominium apartment Rental units Purpose-built Apartments Condominium Apartments units in the secondary rental market, 45,000 representing 37.6% of the total condominium apartment universe, 40,000 an increase from 35.3% last year. 35,000 The secondary rental market has 30,000 seen both supply and demand grow 25,000 faster than in the purpose-built rental 20,000 market. The condominium apartment 15,000 rental universe increased 11.5% in October 2019 compared 10,000 to October 2018, roughly four 5,000 times faster than the purpose- 0 built apartment universe. Despite 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 the increase in the universe, the Source: CMHC Rental Market Survey condominium apartment vacancy rate decreased in the October 2019 two-bedroom units in the purpose- to 0.9% from 2.7% last year as the built rental market. However, number of occupied units increased rental condominiums tend to have by an estimated 13.6%. higher rents due to the additional RESOURCES amenities offered. You can find this data – and data for The average rent for a two-bedroom all provinces and census metropolitan condominium apartment was $1,572, areas (CMAs) in Canada – at cmhc.ca/ which is $267 higher than rents for rental-market-report-data. 3 Rental Market Report - Calgary CMA - Date Released - 2020 Cremona Mountain Kneehill View County County Crossfield Beiseker Irricana Airdrie 10 Rocky View County Cochrane 06 07 Calgary 03 04 01 02 Chestermere 08 Wheatland County Zone - Name 05 01 - Downtown 02 - Beltline 09 03 - North Hill 04 - Southwest 05 - Southeast 06 - Northwest 07 - Northeast Foothills 08 - Chinook No. 31 09 - Fish Creek Kananaskis 10 - Other Centres Municipal Boundary (2016) 0 10 20 ´ km Okotoks 4 Rental Market Report - Calgary CMA - Date Released - 2020 RMS ZONE DESCRIPTIONS - CALGARY CMA Zone 1 Downtown - North: the Bow River; West: 24 Street SW; East: the Elbow River; South: 17 Avenue SW (from 24A Street SW to 14 Street SW), 12 Avenue SW (from 14 Street SW to 11 Street SW), 10 Avenue SW (from 11 Street SW to 2nd Street SE), and 17 Avenue SE (from 2nd Street SE to the Elbow River). Zone 2 Beltline/Lower Mount Royal - North: 17 Avenue SW (from 17 Street SW to 14 Street SW), 12 Avenue SW (from 14 Street SW to 11 Street SW), 10 Avenue SW (from 11 Street SW to 2nd Street SE), and 17th Avenue SE (from 2nd Street SE to the Elbow River); West: 17 Street SW; East: 2nd Street SE (from 10 Avenue SW to 17 Avenue SE), otherwise Elbow River; South: 26 Avenue SW (from 17 Street SW to 14 Street SW), Frontenac Avenue (from 14 Street SW to 8 Street SW), Hillcrest Avenue (from 8 Street SW to 4 Street SW), otherwise Elbow River.