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Vacancy Rates Drift
A moderation in net migration has
allowed vacancy rates in Calgary to
drift higher. Net migration reached a
record in 2006 and this helped drive
the vacancy rate down to a record
low 0.5 per cent. In CMHC’s
October 2007 rental market survey,
the average vacancy rate rose to 1.5
per cent. CMHC is forecasting the
two-bedroom vacancy rate to
increase to 2.5 per cent by October
2008. Competition from
condominium rentals and the
secondary rental market will move
the apartment average vacancy rate
to 3.0 per cent by October 2009.
The rental market continues to
move into more balanced market
conditions and this will make finding
rental accommodations easier for
those looking.
Even though there has been zero
purpose built market rental units
this year, to the end of August, one
cannot conclude that there is no
new rental supply. Supply of rental
units is indirectly coming from
condominium units, and the secondary market of single detached,
semi-detached, and accessory suites.
CMHC’s 2007 condominium
apartment survey found 21 per cent
of all condominium units surveyed
were rented, up four percentage
points from the survey done a year
earlier. A record number of
condominium units are being built in
2008. While many of these units
were designated for
homeownership, they will
nonetheless go into the rental pool
when completed. In Calgary, there
are some new condominium
projects under construction that are
actively seeking investors to
purchase units with the intent to
rent at completion. "CMHC" source 2008-09
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