Calgary Rent Through the Roof
According to Zumper, as of December 31, 2022, the average rent for an apartment in Calgary is:
1 Bedroom: $1,570/mo (37% increase YoY)
2 Bedroom: $1,800/mo (32% increase YoY)
3 Bedroom: $2,300/mo (36% increase YoY)
This rate of rent increases cannot continue and I expect rent appreciation to slow down over the winter (this is traditionally a slower time of the year for all markets) but to see strong gains as we head into the spring and summer markets (I’m thinking high single digits through 2023).
Calgary is facing the perfect storm:
high oil prices
one of the strongest economics in Canada
record provincial migration
record international immigration
historic interest rate increases forcing many potential buyers to stay as renters.
This will continue to keep the demand for rental inventory high for the foreseeable future. Don’t expect another 30%+ increase from this year but solid mid to high single digits is easily achievable with Calgary still being one of the most affordable major markets in Canada.
As a landlord in Calgary, the rent you get for your properties compared to the amount you need to invest is the highest of just about any Canadian City. This makes some properties still cash flow positive even at today’s rates.
If you’ve been considering investing in Calgary, now is a great time to seriously consider buying. Prices are not going to spike 20% over the next 6 months but every time a new pre-construction project is launching, I am seeing prices increase $10k+ price for similar units. Plus, I actually have inventory available from condos, townhomes, semi-detached/duplex and detached to fit any investment goal.
Let’s talk, book a call with me today!