Supply and Demand Levels in the Calgary Rental Market
Calgary Real Estate and Rental Market Update
December 1, 2022 - Written by Jamie Palmer, President/Broker of Power Properties
Supply in Rental Market Continues to be Tight
As noted in last month’s real estate and rental market update, supply in the rental market continues to be tight and is expected to get even tighter. Essentially, demand is outstripping supply, and new construction can’t keep pace with the demand. This will likely be further exacerbated by increased immigration in the New Year. Having said that, we are seeing decreased demand for detached houses in the $2500-$3000 per month range. This is likely due to inflation stretching tenants’ budgets, and much of the demand is for more affordable apartments and townhouses.
Staying Competitive in the Market
If your rental property is not seeing any interest at its listed price, I’d suggest making a price adjustment to stay competitive with comparative listings. It usually makes more sense to have the property rented at a lower price than go vacant for 1+ months. Something to keep in mind, losing an entire month of rent may be more detrimental than renting your property at a lower price. For example, if you’ve listed your property at $2600/Month and it goes vacant for a month, you’ve lost out on $2600 of your rental income. However, if you would have lowered it to $2400/Month and it rented right away you’d only have lost ($100 x 12 months) $1200 of that potential income.
If you’d like an up-to-date rental evaluation for your property, book a complimentary appointment with one of our licensed and qualified agents today!