20 November 2010 ~ 0 Comments

Edmonton Rental Market

As we close on 2010 I thought it would be good to look at the Edmonton rental market trends. Vacancy rates are projected to go down and rent to remain steady in 2011. These are some of the factors affecting the availability and prices of Edmonton rentals:

  1. Construction of condos, multi-family starts and rental apartments
  2. Net migration of people to Edmonton
  3. Affordability of buying a place vs. renting

Looking at the rental market in Edmonton from the research done by CMHC, Edmonton condo sales and listings on the MLS have steadily decreased in 2009 with the average condo sale coming in just under $250,000. This is still a pretty high entry point for first time buyers to buy a home. Even though interest rates are still relatively low, buyers are still coming out of the economic recession with their wallets already filled with debt.

Construction starts on liveable units have dramatically decreased as well. Semi, row and apartment units under construction in Edmonton have decreased 50% since December, 2008.

Edmonton Apartment Rental Unit Starts

Edmonton Apartment Rental Unit Starts

Multi-family unit starts have dropped to the lowest level since 1997.

Multi-family unit starts in Edmonton

Multi-family unit starts in Edmonton

With the construction of units falling off their peak, vacancy rates from last year are forecasted to come down in 2010 for apartments for rent in Edmonton and Edmonton condo rental.

Edmonton rental vacancy rate

Edmonton rental vacancy rate

So with the contraction of units under construction and condo prices coming down off their peaks, where are the rental prices going in Edmonton? Flat is the answer, forecasting to go up marginally from last year.

Average Rent for a 2 bedroom apartment in Edmonton

Average Rent for a 2 bedroom apartment in Edmonton

It is harder to find good tenants now compared to the past. CMHC also surveyed landlords who are providing incentives for renters to find their ideal apartment for rent in Edmonton. Close to 25% of the Edmonton Property Managers offered incentives in Edmonton.

Rental incentives in Edmonton

Rental incentives in Edmonton

So construction of rental units have come way off their peaks which will decrease the vacancy rate of Edmonton apartment rentals. Prices are going to remain flat and Edmonton landlords still need to be competitive to find their tenants

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