Rents have increased exponentially and rental prices are expected to continue to rise throughout 2022 with rising oil prices, and even with the prospect of higher interest rates which is not expected to slow the trend. On March 2, the Bank of Canada raised its benchmark interest rate to 0.5 per cent, a move that’s expected to be the first of a series of small rate hikes this year. The rental market is influenced by the real estate sales market – when real estate sales are active, fewer properties are available to rent.
“We finished 2021 on an unusually strong note,” said Royal LePage President and CEO Phil Soper. “The winter has been an extremely active one … and we expect that to continue into the spring.”
The Calgary rental market is particularly active for single family detached properties as opposed to apartment style condominiums. Rents for single family homes in some communities have increased by as low as 15% and upwards of 30% from a year ago for some properties. For inner core condominiums, we have experienced rental increases in the order of 8-12% as compared to a year ago. Rents for newer built apartment condominiums typically range from 1.50-2.50 per ft2 based on the complex’s amenities, location of the suite within the complex, community, and condition of the suite, inclusions in the tenancy agreement and term. Some condominium complexes and communities are clearly more desirable to renters than others.
As seen in the resale market, the rental market is now often subject to multiple applicants for properties. Hopefully we will see a return to a more balanced market over the coming months as more rental properties come to the market.
Citysearch provides rental statistics to several companies that used by major employers to set rental subsidies to relocating employees to Calgary. We typically provide this early fall on an annual basis however; the market has changed dramatically just over the past few months. As such, some relocation policies and rental subsidies have not kept up with the recent upside swings in the rental market.
Citysearch provides these rental statistics which are not readily available as compared to MLS sales which are documented and readily available. We collect rental statistics from our extensive activity in the market and from numerous other sources by property type and community.