Calgary vacancy rate jumps amid sluggish condo sales

Calgary's rental vacancy rate has climbed to almost four per cent, in part due to the slow sales of both new and converted condos, says a group that represents landlords.

Almost 40 per cent of new condominium units built last year, as well as condo conversions that did not sell, are now being rented out, said Gerry Baxter, executive director of the Calgary Apartment Association.

"The market is really restabilized and you know, right now it's like a balanced market," said Baxter. "It's good for both the landlord and very good for the tenant as well."

In a report earlier this month, the Canada Mortgage and Housing Corporation projected the rental vacancy rate would rise to two per cent this year, up from last year's 1.5 per cent. But based on information from members, Baxter said his group believesthe rate is closer to about 3.8 per cent.

Another reason for the cooling rate is that fewer renters are moving to Calgary. This year,the apartment associationis expecting only half of the 36,000 new renters who relocated to the city in 2007.

'We're able to bring more supply on and that means we are able to help more families.' Dale Stamm, Calgary Housing Company

Calgary's vacancy rate hit an all-time low of 0.5 per cent in 2006.

"We aren't seeing as much competition [among tenants]," confirmed Lauretta Enders, vice-president of Emerald Management, which manages thousands of Calgary apartments. "For one unit, we aren't seeing the big lineups and the mass showings."

Dale Stamm, general manager of the Calgary Housing Company, said the flood of available units is good news for the working poor who have been waiting for a home.

"We're able to bring more supply on and that means we are able to help more families," he said.

Over the last year, Stamm said, more than 800 subsidized apartments have been made available to those on a waiting list of thousands.