11/15/2019

Calgary Rental Market Increasingly Competitive

Lifestyle choices and economics are playing a major role these days in driving rental demand in Calgary, according to a report by Urban Analytics, a real estate research firm.

The report says Calgary’s rental apartment market remains active with the B20 mortgage stress test rules continuing to make it challenging for would-be first-time home buyers to qualify for a mortgage, leading potential buyers to continue renting for the foreseeable future.

The demand is so robust, says Urban Analytics, that it continues to see developers converting initially proposed market condominium projects to rental apartment developments in response to these market conditions.

“Calgary’s rental market has become increasingly competitive over the past few years due to a multitude of reasons,” said Kimberly Poffenroth, VP, Business Development & Market Analysts (Alberta) of Urban Analytics, during a session at the recent Calgary Real Estate Forum. “Flexibility of renting has been an attractive factor especially with the current economic stresses in Calgary. For the young professionals, it’s a lot easier to adjust and move around if you’re just committed to a one-year lease versus a 25-year mortgage and that has been drawing in people who want that ease of living in a rental building and who don’t have their employment situation figured out quite yet and who aren’t quite ready to purchase a home.”

Robert Moskovitz, Vice President, Development and Operations, Landstar Communities, told the real estate forum that cultural and economic factors currently trending will impact the rental market in the next 10 to 15 years with a major shift taking place.

“Part of it is driven by the local economy. People are less willing to look at the condo option because the option of rental gives them more – the mobility and the flexibility. The other aspect is . . . . generational in which the new generation kind of has a different perception in terms of how they look at their future and their whole understanding culturally of the shared economy so therefore it’s easier for them to come to terms with the rental product rather than purchasing something and then tying themselves to it,” he said.

Another key factor that is boosting the rental market in the city is a lack of supply. Quite simply, data indicates that on a per capita basis Calgary trails other major cities for the number of rental units it has in its inventory.

“There’s a lot of vintage and we know there’s a flight to quality here in Calgary. Calgary has the lowest inventory of rental units per 100 people across the country. For the size of the city that Calgary is they have 2.6 units per 100. If you look at similar cities across the country, Edmonton and Ottawa, they’re in the four units per 100. I look at Calgary as there’s an opportunity to build quality amenitized buildings here in the marketplace,” said Marcel Parsons, Vice President, Asset Management, GWL Realty Advisors, who was also one of the panelists during the multi-residential session at the Calgary Real Estate Forum.

These days people are choosing to rent in the Calgary market due to their life circumstances. They are at the early stages of their careers. Their personal relationships are still up in the air. They haven’t managed to save enough money for a down payment on a property. The economic uncertainty in Calgary’s future weighs on their mind.

In fact, the Conference Board of Canada in its most recent report on metropolitan economies predicted that Calgary would fall into a recession this year, which would be its third recession since oil prices collapsed in late 2014. Other recession years were in 2015 and 2016.

All these factors – economic and cultural – bode well for the rental market going forward.

And it’s a main reason why there’s a boom these days in new purpose-built rental apartment units. Urban Analytics reported at the Calgary Real Estate Forum that there are currently 52 projects, comprising 7,288 units across the city.



Terms & Conditions

By clicking "I Agree" and accessing this content, you acknowledge and agree to the following terms and conditions of use. The following constitutes a legal agreement governing your access to and use of the following webpages and is entered into between you and Avenue Living Asset Management Ltd. and (collectively, the “Company”):
  1. Restricted Access
The information contained on the following webpages is intended solely for use by individuals who are registered investment professionals in Canada, including those registered with a provincial securities commission, the Canadian Securities Administrators (CSA), or a recognized self-regulatory organization (e.g., CIRO). If you are not a registered investment professional in Canada, you are not authorized to access or use this information.
  1. Regulatory Compliance
By accessing this information, you represent, warrant and covenant that:
  • You are a registered investment professional in Canada and remain in good standing under applicable laws;
  • You are accessing the information solely in your professional capacity, and not as a retail investor or for general promotional or solicitation purposes; and
  • You will not use the information in any manner that would breach Canadian securities laws or regulations or applicable laws of any other jurisdiction.
  1. Company Status and Distribution Model
Avenue Living Asset Management Ltd. is a non-registered asset management firm and does not itself engage in the distribution of securities. Securities of Avenue Living Real Estate Core Trust, Mini Mall Storage Properties Trust, Tract Farmland Partners LP and any other issuer described in these materials are distributed exclusively through third-party investment dealers and exempt market dealers that are registered under applicable Canadian securities laws. Such distribution is conducted pursuant to available prospectus exemptions under National Instrument 45-106 – Prospectus Exemptions or other applicable local exemptions in the relevant offering jurisdictions. The Company does not provide investment advice or portfolio management services and is not registered as a dealer or adviser in any Canadian jurisdiction.
  1. Nature of Information
By proceeding, you acknowledge that the materials available behind this click-through agreement may include, but are not limited to:
  • Offering Memorandums (OMs) and other subscription-related documents;
  • Marketing presentations and fund fact sheets relating to potential investment opportunities;
  • Due diligence materials and supporting documentation;
  • Confidential information regarding investment strategies, fund structures, and/or management teams.
Such information is non-public, proprietary, and confidential, and is intended only to be accessed and reviewed through the Company’s website by qualified, registered investment professionals.
  1. Not an Offer or Solicitation
The materials accessed are provided on this website solely for informational purposes and do not constitute an offer to sell, or a solicitation to buy, any securities or investment products in any jurisdiction, nor do they constitute investment advice. Any such offer or solicitation, if made, would be pursuant to applicable securities laws and accompanied by appropriate offering documents. No offer or sale is being made to any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933, as amended), nor to any person in the United States or subject to U.S. jurisdiction. The securities described hereinafter have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States or to U.S. Persons absent registration or an applicable exemption. The information contained on this website is not intended to constitute financial, investment, legal, accounting or tax advice or counsel and must not be relied upon in that regard. See Disclaimer - Avenue Living Asset Management and Forward Looking Statements - Avenue Living Asset Management for further information.
  1. Confidentiality & No Dissemination
You acknowledge that the information you are accessing is confidential and proprietary to the Company. You agree:
  • Not to copy, forward, share, or otherwise disseminate any of the materials;
  • Not to use the materials for any purpose other than your internal investment evaluation in a professional capacity;
  • To maintain the confidentiality of all information in accordance with applicable professional and legal standards.
You agree that the materials may not be copied, distributed, forwarded, or otherwise disseminated to any third party, including clients, prospective investors, or members of the public, without prior written consent of the Company. Unauthorized distribution, reproduction, or reliance by any third party is strictly prohibited.
  1. Intellectual Property Rights
All content provided is the intellectual property of the Company or its licensors and is protected under applicable copyright, trademark, and trade secret laws. You are granted a limited, non-transferable, non-sublicensable license to access and use the materials solely for professional due diligence purposes. You may not modify, reverse engineer, decompile, or create derivative works from any materials, nor remove any copyright or proprietary notices.
  1. Accuracy and Limitation of Liability
The information provided is believed to be accurate and reliable as of the date presented but is subject to change without notice. The Company makes no representation or warranty, express or implied, as to the accuracy, completeness, or currency of the content and disclaims all liability, to the extent possible under applicable securities laws, arising from any reliance on such information.
  1. Language
The parties hereto expressly request and require that this agreement be drawn up in English. Les parties aux présentes conviennent et exigent que cette entente soit rédigé en anglais.
  1. Acceptance of Terms
By clicking "I Agree," you confirm and agree that: If you do not agree to these terms, do not access or use the information.

Related Posts

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.


Tessa Bartlett 25 September, 2025

Avenue Living Closes Senior Unsecured Debenture Offering for $350 Million

Calgary, AB, Sept. 25, 2025 (GLOBE NEWSWIRE) -- Avenue Living (2014) LP (“Avenue Living”) announced…

Tessa Bartlett 25 September, 2025

Avenue Living Announces $350 Million Senior Unsecured Debenture Offering

Calgary, AB, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Avenue Living (2014) LP (“Avenue Living”) announced…

Tessa Bartlett 25 September, 2025

Avenue Living Recognized as a Top Employer for Second Consecutive Year, Highlighting the Power of People Behind Record Growth

Calgary, AB, Sept. 16, 2025 (GLOBE NEWSWIRE) -- Avenue Living has once again been named one of…