CMHC released the Rental Market Report for Calgary a couple of days ago and a review shows significant drops in vacancy rates across the board. While prices are showing just marginal increases, they are sure to follow soon given the current trends.
The fall rental market survey of the Canada Mortgage and Housing Corp. shows the city's apartment vacancy rate decreased to 1.9 per cent in October compared with 3.6 per cent in October 2011.
What is fueling this change? Increased demand.
With an increase in migration to Calgary and Alberta in general, available inventory has been reduced. This is even in spite of new projects coming on line.
The changes to mortgage and lending rules last year may have also resulted in less new inventory coming to market. While a majority of large investors weren't affected, there is a significant group that has had to shift their investment patters.
What does this mean to you? If you are renting, prepare for a potential rate increase this coming year or more competition for available units. It may also be a signal that the resale home market is also about to see a positive shift.