That sound you hear is not the sound of stampeding horses at the Saddledome in Calgary. Rather, it's the sound of real estate investors descending upon Edmonton to snap up some of the city's affordably-priced inventory.
Local real estate developers are scrambling to keep pace with the heavy demand. As a result, approximately 5,000 new rental units are expected to be built within the city limits in the not-too-distant future.
A total of 46 new apartment complexes are presently under construction in the Oil City, according to data from CBRE Limited. Before this heightened period of demand, Prior an average of 1,000 units was added to the market. This allowed the city to maintain a vancancy rate of under 2 per cent.
In the fourth quarter of 2013, Edmonton's vacancy rate checked in at 1.2 per cent, a noticeable decrease from the rate of 1.7 per cent observed at the same time in 2012..
Given its location within Alberta, Edmonton's economy is powered by the burgeoning oil and gas industry, and its performance continues to attract new employees. According to CMHC projections, a total of 68,100 people will move to Edmonton for jobs this year. Last year, nearly the CMHC estimates that 100,000 people migrated to Edmonton.
The total sales volume for existing apartment buildings was in excess of $301.5 million in 2013, marking 35 per cent increase since 2013. The majority of the new development in Edmonton target's the city's central area.
Despite this good news, multi-family inventory in the region remains critically low. However, 2014 will see this pressure ease during 2014 as developers put the final touches on numerous new buildings.
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