Edmonton, Alberta, Rental Housing Market: Review

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Author: Moishe Alexander (Reprint)

Edmonton, Alberta, Rental Housing Market: Review

By Moishe Alexander

The Edmonton Alberta rental market is experiencing vacancy rate increases. In fact, the rental vacancy rate has increased substantially from 1.5% in 2007 to 2.4% in 2008.

It is tougher times for landlords in Edmonton Alberta to rent their units.

The Canada Mortgage and Housing Corporation reported that the Edmonton Alberta area is experiencing an increased amount of vacancies in rental housing in all sectors. Much of this is attributed to migration out of the province of Alberta, which has seen over 1600 families leave the Edmonton Alberta area in 2008. CMHC attributes some of this up-turn in the vacancy rate to competition from secondary rental market of the units, and investor owned condominium apartment increases in 2008.

According to Canada Mortgage and Housing Corporation, private homeowners and investors in Edmonton Alberta have increased the rental housing stock by 21% for the first 10 months of 2008. This is caused a surplus of rental housing stock in the Edmonton Alberta area.

MOISHE ALEXANDER SAYS SECONDARY RENTAL MARKET IS BECOMING INCREASINGLY IMPORTANT TO THE HOMEOWNER TO SUPPLEMENT THEIR INCOME DURING THIS WORLD ECONOMIC CRISIS

The Canada Mortgage and Housing Corporation report states that since there is a migration problem in Edmonton, and the unemployment rate is up 3.4%, a strong demand has occurred for rental units to be created by home owners, which is called the "secondary rental market". Pressure is being excreted on the local municipality cities to relax their zoning and building codes to permit additional secondary rental units in private homes.

The Canada Mortgage and Housing Corporation report states that last fall in Edmonton Alberta, a one-bedroom apartment that used to rent for $764.00 is now renting for $783.00 compared to the same period last year. A two-bedroom unit that rented last year for $744.00 are now renting for $762.00, which is approximately 25% increases.

Government sources say that with this increase cost, welfare recipients are hard pressed to rent anything in Edmonton Alberta.

Canada Mortgage and Housing Corporation report that in 2007, and then in 2008, landlords have started offering tenants incentives for the first time in 15 years to rent apartments. Incentives often include benefits such as one-month free rent, or 2-year leases (with fixed rental payments), extra appliances, free cable TV, or free parking and or high-speed Internet.

NATIONAL VACANCY RATE DECREASED IN OCTOBER 2008

Canada Mortgage and Housing Corporation reports that the vacancy rate in Canada's 34 major centers decreased to 2.2% from 2.6% in October of 2008, for the same period the year before. Vacancy rates were as high as 14.6% in Windsor to a low of 0.3% in Kelowna BC.

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