Rent growing fastest in Calgary compared to rest of country
Rent jumps by nearly 9% after double-digit growth the previous year
The cost to rent a place to live continues to climb in Calgary at a faster rate than any other major city in the country.
The average cost of a two-bedroom apartment in the city is 8.9 per cent higher in October of this year compared to one year earlier, according to the latest report by the Canada Mortgage and Housing Corporation (CMHC).
Rents in the city had soared by 14.3 per cent from October 2022 to October 2023.
Calgary is still significantly outpacing all other major cities because of "unabated rental demand," according to the CMHC.
"Strong rent increases were supported by updated rental stock over the recent years, with a growing share of newer units becoming competitive with homeownership and secondary rental options. Landlords had more flexibility to raise rents for existing tenants, as they were not bound by rent increase guidelines," the report said.
New apartments and rental units are hitting the market at the highest rate in over 30 years, said CMHC. Still, demand for those units remains high with an increasing population.
Calgary's rental vacancy rate for purpose-built units has climbed from 1.4 per cent in 2023 to 4.8 per cent this year, said Taylor Pardy, a CMHC economist focused on the Prairies and territories.
"The market is still absorbing new people moving to the Calgary area. At the end of the day, this is a healthier dynamic in the market than we've seen in quite some time, really over the past three years or so, where demand was outstripping supply," said Pardy.
Affordability not improving
On average, rent is increasing by 5.4 per cent nationally.
Overall, affordability is not improving as many living expenses continue to rise.
In Alberta, the latest inflation statistics were released on Tuesday showing an increase of 2.8 per cent in November. The higher price of gasoline compared to one year ago was the major reason for higher inflation in the province.
Besides food and energy costs, inflation rose to three per cent, which is above the national measure and the highest among the provinces, according to Charles St-Arnaud, an economist with Alberta Central credit union.