Despite having the lowest residential vacancy rates in Canada, a top expert says there is an easing in the tightness of the market due to new construction of rental units and condominiums, according to a Calgary Herald report.
A major shift has been observed in Calgary, which has resulted in the market being more geared towards tenants than landlords.
"We are seeing an easing of the vacancy rate as it’s moving higher," Sam Kolias, chairman of Boardwalk REIT said in an interview. "There’s more supply and more competition and choice that has entered the market and will continue to enter the market."
Kolias added that the REIT has increased the number of incentives offered to investors, which include free rent to counter the additional choices that tenants are enjoying today.
These incentives range from $25 to $275 a month off the regular rent price, depending on the apartment unit and its location. The increase in supply within Calgary and Edmonton is due to new developments being built in both markets, in additioon to new condo units which are being converted into rentals or being purchased outright by renters.
According to a report from CIBC senior economist Benjamin Tal, Calgary's vacancy rate is 1 per cent, while Edmonton's in 1.4 per cent.
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