Average cost of apartment rises 11 per cent
Calgary post-secondary students returning to school this week are facing one of the hottest rental markets in years, leaving many scrambling to find affordable accommodation.Observers say the market for rental properties is the tightest since the past economic boom. And with apartments getting harder to find, one rental website is reporting an 11 per cent hike in the average cost of renting a unit over past year.“It is really stressful,” said 19-year-old Chelsey Cordell, a Sylvan Lake native who was busy searching for a place to live on Friday, just days before beginning class at SAIT. “I am really nervous. I kind of had a breakdown yesterday. It’s frustrating trying to find a place to live.”
The latest numbers from Canada Mortgage and Housing Corp. (CMHC) show that the rental market has been tightening. Calgary’s apartment vacancy rate fell to 2.5 per cent in April 2012, from 3.4 per cent in April 2011 and 5.3 per cent in April 2010, according to CMHC.
With accommodation becoming more scarce, rents are also on the rise.
The corporation’s spring rental market report said the average two-bedroom apartment rent in Calgary reached $1,113 per month in April 2012 compared with $1,040 in April 2011.
But numbers compiled by one Calgary rental website suggest the market has gotten even tougher for renters in recent months.
Rentfaster.ca recently compared average rents for listings on its website between March 1 and Aug. 15, 2012, to the same period in 2011. It found a 21 per cent jump in the cost of renting a house, with rent climbing to $2,444 from $2,012.
As well, renting an apartment increased 11 per cent (to $1,206 from $1,087) and there was a seven per cent hike in the cost of renting a basement suite (to $913 from $850).
Darren Paddock, president of RentFaster.ca, said heavy demand for limited rental properties means landlords are getting flooded with calls.
“Landlords are in the driver’s seat right now,” Paddock said. “They’re able to be quite picky. If you have a pet, if you smoke, it’s really tough.”
A tight rental market allows landlords to overlook students who may not have a job or a lot of references in favour of older tenants, Paddock said.
“The rental market is very, very hot … It’s the hottest we’ve seen it since 2007, for sure.” he said.
At the University of Calgary, rental accommodation is also hard to come by despite a 600-bed facility that opened last year and eliminated residence wait lists.
All residences at the U of C are full this year and about 100 students are on a wait list for on-campus housing, said director of residence Randy Maus.
Officials at Mount Royal University and SAIT said they will accept U of C students if they have the space in their residence facilities, which are filling up fast.
On Thursday, 1,108 students were housed and 68 spots remained in SAIT’s two residence towers. Spokeswoman Melanie Simmons said she expected residences would be full by Sept. 7. There are 1,010 beds available for students at MRU and on Thursday there were only 25 to 30 spaces in residence left, said director of residence services Steve Fitterer.
The latest numbers from Canada Mortgage and Housing Corp. (CMHC) show that the rental market has been tightening. Calgary’s apartment vacancy rate fell to 2.5 per cent in April 2012, from 3.4 per cent in April 2011 and 5.3 per cent in April 2010, according to CMHC.
With accommodation becoming more scarce, rents are also on the rise.
The corporation’s spring rental market report said the average two-bedroom apartment rent in Calgary reached $1,113 per month in April 2012 compared with $1,040 in April 2011.
But numbers compiled by one Calgary rental website suggest the market has gotten even tougher for renters in recent months.
Rentfaster.ca recently compared average rents for listings on its website between March 1 and Aug. 15, 2012, to the same period in 2011. It found a 21 per cent jump in the cost of renting a house, with rent climbing to $2,444 from $2,012.
As well, renting an apartment increased 11 per cent (to $1,206 from $1,087) and there was a seven per cent hike in the cost of renting a basement suite (to $913 from $850).
Darren Paddock, president of RentFaster.ca, said heavy demand for limited rental properties means landlords are getting flooded with calls.
“Landlords are in the driver’s seat right now,” Paddock said. “They’re able to be quite picky. If you have a pet, if you smoke, it’s really tough.”
A tight rental market allows landlords to overlook students who may not have a job or a lot of references in favour of older tenants, Paddock said.
“The rental market is very, very hot … It’s the hottest we’ve seen it since 2007, for sure.” he said.
At the University of Calgary, rental accommodation is also hard to come by despite a 600-bed facility that opened last year and eliminated residence wait lists.
All residences at the U of C are full this year and about 100 students are on a wait list for on-campus housing, said director of residence Randy Maus.
Officials at Mount Royal University and SAIT said they will accept U of C students if they have the space in their residence facilities, which are filling up fast.
On Thursday, 1,108 students were housed and 68 spots remained in SAIT’s two residence towers. Spokeswoman Melanie Simmons said she expected residences would be full by Sept. 7. There are 1,010 beds available for students at MRU and on Thursday there were only 25 to 30 spaces in residence left, said director of residence services Steve Fitterer.
A tight rental market on campus and off forces students to live in illegal and potentially unsafe secondary suites said Hardave Birk, president of the U of C Students’ Union.
“The fact that Calgary continues to see a decline in the vacancy rate and an increase in the cost of rent, it’s making it harder and harder for students to afford to live here,” Birk said.
Despite viewing hundreds of rental properties online and visiting more than a dozen places in person, Cordell said she has found few basement suites or apartments that are reasonably priced and located near SAIT, and the places she is interested in are being snatched up quickly.
“I definitely didn’t think it would be this difficult,” she said.
“The fact that Calgary continues to see a decline in the vacancy rate and an increase in the cost of rent, it’s making it harder and harder for students to afford to live here,” Birk said.
Despite viewing hundreds of rental properties online and visiting more than a dozen places in person, Cordell said she has found few basement suites or apartments that are reasonably priced and located near SAIT, and the places she is interested in are being snatched up quickly.
“I definitely didn’t think it would be this difficult,” she said.
By Annalise Klingbeil, Calgary Herald September 4, 2012 7:25 AM
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