Calgary vacancy rates quadruple from last year: CMHC

Calgary's once-cramped rental market has space to spare, and it could have implications for the city's new and resale home sectors.

In its recent fall rental survey, Canada Mortgage and Housing Corporation's (CMHC) reported vacancy rates in Calgary's rental sector has nearly quadrupled over the previous year, jumping to 5.3 per cent in October from 1.4 per cent at the same time last year.

"The call volume has dropped off considerably in the last 12 months," said Mainstreet Equity Corp. CEO Bob Dhillon, whose Calgary-based real estate company owns and operates rental properties in the Calgary area, as well as in British Columbia and Saskatchewan.

Renters with kids face uphill battle

After her marriage broke down in 2013, Kelly Farley needed to find a home to rent for her and her two teen daughters. She wanted to stay close to the northwest Calgary neighbourhood where the girls had grown up and to keep them in the same schools.

Eventually she found the main floor of a house; another tenant lived in the basement. It wasn't the best situation, but things got worse before they were better.

The basement tenant moved out and the landlord decided to sell the house. Then, just weeks after Farley moved out, the landlord relisted the main-floor unit — for more money than Farley had been paying, and more than she could afford.

"It was a grim search and I became desperate," said Farley of her house-hunting search. "When you have kids and you're going through a family breakdown, as a renter, all you want to know is that you have a safe, stable place to land."

Will an increase in vacancy rates push down housing demand? 

Calgary has long had a reputation as a difficult place to rent – a reputation confirmed for much of last year when the city's vacancy rate hovered below one per cent.

Yet market uncertainty brought upon by oil patch woes have painted a much different picture in 2015, with Canada Mortgage and Housing Corp. (CMHC) reporting vacancy rates in the city as high as 3.2 per cent.

While good news for renters, it poses as potential bad news for home sellers, notes ATB Financial chief economist Todd Hirsch.

Pet owners say discriminating landlords distorting vacancy rates

Erika Lagyjanszki is about to make the move from Toronto to Calgary to start her business as a wedding photographer and a new life with her boyfriend.

Looking for a place should have been a breeze for the two given the uptick in vacancy rates in Calgary as of late.

In fact, according to the Canadian Mortgage and Housing Corp. (CMHC), in the Calgary CMA, the overall apartment vacancy rate increased year-over-year from 1.4 per cent in April 2014 to 3.2 per cent in April 2015.

"The increase in the vacancy rate was a result of the universe of rental apartments in Calgary rising at a faster pace than demand for rental units," said Christina Butchart, principal market analyst with CMHC.

Five reasons to buy rentals in Calgary

Despite media headlines and continued sensationalism from economists both domestic and  foreign, Calgary continues to be one of the best places for real estate investment in Canada.

Here are five reasons why:

Vacancy rates remain low: According to the fall 2014 edition of the CMHC Housing Market Outlook for Calgary, vacancy rates remain low at 1.4 per cent and are not expected to exceed 1.8 per cent in either 2015 or 2016. Vacancy rates are deemed favourable for real estate investment when they are below five per cent.

'Don't pay off someone else's mortgage'

Many of us remember our parents telling us it is better to own a home than rent one at some point in time – "don't pay off someone else's mortgage," they'd say.

They could not have been more correct.

So why are many people still choosing to rent when owning a property can be so financially rewarding?

Mid-year forecast calling for more supply, added choices

Mario DeMarco thought he was prepared for anything after deciding to become a first-time homeowner.

The 25-year-old Calgarian has spent the past two years saving for a down payment, and was recently promoted at work, giving him the financial stability to purchase his own place – ideally a condo in the Beltline.

The City of Calgary Development & Building Approvals in partnership with the Calgary Fire Department are conducting a suite safety pilot on 50 of the city's existing suites.

The objectives of the pilot include seeing if the 50 suites have relevant permits, have the correct land use designation and are up to Alberta Fire and Building Code standards. The City will then assist property owners through City processes to bring their suites up to compliance if possible.