More empty apartments, no drop in rental rates

Calgary's vacancy rate has more than doubled in the past year, but rents remain among the highest in the country.

The city's rental vacancy rate jumped to 4.3 per cent in April from two per cent in the same month a year earlier, according to Canada Mortgage and Housing Corporation. But the average rent for a two-bedroom unit during the same period rose to  $1,106 from $1,096.

Industry insiders say the slower economy has fewer people moving to Calgary, while existing renters have incentives to buy.

"Interest rates for home ownership are so low now for mortgages, people are leaving and buying new homes," said Gerry Baxter, president of the Calgary Apartment Association.

New tenants are sometimes seeing perks like free cable or even a break on rent for the first month. 

"We're seeing many landlords that do whatever it takes to attract tenants to their building, [even] if that includes reducing the rents or offering incentives to attract people," he said.

"It's a very competitive market so if you want to rent your units, you have to make sure that your competitively priced. If you're not and you're overpriced, you won't rent your units and you'll have greater vacancies."

Renter Carol Anne Peterson just returned to Alberta after a few years in Eastern Canada and abroad. It only took her a week to find a rental home, which she says has all the comforts and amenities she needs at the right price.

"The rents were even higher like 10 years ago than they are now in some areas, but it all depends on what you are wanting," she said. "You can have a big fancy place for two [or] three bedrooms that are very high in rent or something reasonable."

Calgary is still the second highest in the country for average monthly rents, just below Vancouver at $1,154. Toronto follows in third at $1,093, Edmonton in fourth place at $1,059, and then Victoria rounds out the top five at $1,043.