A rental vacancy rate is the percentage of the rental market standing vacant when measured. Vacancy rates are therefore snapshots in time and may or may not be place bound. However, statisticians often express them by property type, and location at city, town, or suburban level because these are easier to understand.
At the outset it’s important to note a 15% apartment vacancy rate does not mean a particular apartment will be empty for two months a year. The actual vacancy rate will depend on its characteristics. The art of investing in real estate for rental revolves around knowing how to spot the differences.
Edmonton and Calgary Vacancy Rates Improving
Troy Media reports the effect of overbuilding in Alberta’s twin cities has eased off. Although the third quarter of 2018 still showed a “moderate degree of overall vulnerability” in their housing markets. This is a positive move in the light of their previous rating of “high”.
This appears to be the result of the current, uncertain economic climate shifting some interest away from real estate ownership. Inventories were still relatively high in Edmonton at the close of the year, with Calgary benefiting more from economic lethargy.
Canada Mortgage and Housing Association Praises Calgary
The Association’s Housing Market Assessment reported improving rental property vacancy rates in Calgary with low evidence of overheating. “Calgary continues to deal with a housing supply and demand imbalance created from the 2014 oil price shock and recent slow economic recovery,” it said.
“An elevated unemployment rate, lower real personal disposable income, and higher interest rates have put downwards pressure on the demand for home ownership. Buyers’ market conditions continue to persist, which has put downwards pressure on house prices,” the report added.
This Could Be an Excellent Opportunity to Invest in Calgary
This period of lower house prices could prove an excellent opportunity to invest in Calgary residential real estate. “In the rental market, some shifting demand towards rentals has helped to absorb both purpose-built and investor-owned condominium rental units,” the Association’s Housing Market Assessment concludes.
We detected similar trends and added a number of affordable, highly rentable condos to our inventory. We expect demand for this category of rental estate may increase throughout 2019. Therefore you should speak to Stonegate Equity soon you are interested in exploring the potential opportunities for you in our city. The number to call is (587) 500-0417.