Demand for rental accommodations in Calgary is expected to improve over the next two years, as lower vacancies move average rents higher.
After declining to 1.9 per cent last year, the apartment vacancy rate in October, 2012 is forecast to decrease to 1.7 per cent, according to the Calgary Housing Market Outlook prepared by CMHC.
This demand is driven largely by employment opportunities in Calgary, drawing new migrants to the region, who typically seek rentals when they first arrive.
According to the CMHC report, landlords will see sustained interest in their rental units in 2013, as the vacancy rate in October 2013 is forecast to remain near current levels, averaging 1.5 per cent.
The report notes that the number of secondary suites within private homes has grown over the years and will become an option for tenants due to a higher vacancy rate on those units.
Because the vacancy rate in Calgary declined for the third consecutive year, CMHC predicts that incentives offered by landlords will disappear and average rents will climb.
The average two-bedroom rent is expected to reach $1,150 in October 2012, up from $1,084 in October 2011, according to the report. CMHC is forecasting that in October, 2013 the average two-bedroom will rent for $1,200 per month.
Rent increases should help landlords offset any rising maintenance costs, according to CMHC.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.