Calgary Rental Market Continues to Slide in July

As the average rent for an apartment in Calgary, AB continued to decrease in July 2018.  Within the apartment category, one-bedroom apartment rents seem to have taken the major hit on the average rental. One-bedroom apartments in Calgary rent on an average for $1080 a month or about 5.3% decrease from last month per data gathered and analyzed by PadMapper. The two-bedroom apartment rents for an average $1350 or about 2.2% decrease from same time last month.

Calgary's Downward Trend Continues               
Overall, 13 cities saw an upward rental trend, 12 downward, and 1 remained flat last month. A majority of these cities, 16 of 26, had large year over year growth rates that were over 10%, reflecting the hot Canadian rental market this summer.

Notably, while Ottawa had the largest monthly growth rate in the nation, up  5.1%, Calgary took the biggest rent dip, down 5.3%. Over the last month the average apartment rent in Calgary for single bedroom and double bedroom has decreased by -2.45%. 

Most Expensive Canadian Cities
Followings cities in Canada top as most expensive cities for renters based on latest average rents for the month of July for 1 bedroom and 2 bedrooms apartments;

1. Toronto ON: Average 1 Bed rent $2080, Average 2 Bed rent $2800,
2. Vancouver BC: Average 1 Bed rent $2000, Average 2 Bed rent $3200,
3. Barnaby BC: Average 1 Bed rent $1500, Average 2 Bed rent $2260,
4. Barrie ON: Average 1 Bed rent $1350, Average 2 Bed rent $1590,
5. Montreal QC: Average 1 Bed rent $1310, Average 2 Bed rent $1620,

Visible Shift Towards Rental
As mortgage interest rates continue to climb along with tighter CMHC rules to qualify for mortgage, many first time home buyers are finding themselves out of market. Both reduce the spending power of potential condo buyers. Also many young millennial are making conscious life style choice to rent an apartment or condo close to work rather buy their own place to live in suburbs likely with longer drive.

This is leading to a slow but visible shift towards property rental more desirable than before. Some say buyers are now responding to these changes by abandoning the idea of ownership entirely, and this is behind the rise of purpose-built rental in Calgary.

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