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Edmonton Real Estate Market

This has and will continue to impact proposals in our marketplace.

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The Edmonton area’s benchmark apartment vacancy rate climbed last year to 7.2% from 4.9% in 2018, hitting the highest level since economic crashes in the mid-1990s and early 1980s.

The number of purpose-built rental units rose 2,223 in 2019 as developers brought twice as many suites onto the market as the year before, Canada’s national housing agency reported Jan. 28.

The only major market in Canada with a higher rate is Regina at 7.5%. Calgary stands at 6.6% while the national rate is 3.2%.

“Slower rental demand due to weaker economic conditions and lower migration combined with higher rental supply resulted in an increase in the vacancy rate in the Edmonton CMA,” CMHC’s Edmonton senior analyst Christian Arkilley said.

Despite the spike in vacancies, rent costs remained unchanged at $1,153 a month. But the average rent for suites that went on the market in the last two years was $1,513, resulting in a 12% vacancy rate.

edmonton.taproot.news

Apartment vacancy rate soars to 7.2%

The Edmonton area’s benchmark apartment vacancy rate climbed last year to 7.2% from 4.9% in 2018, hitting the highest level since economic crashes in the mid-1990s and early 1980s.
edmonton.taproot.news edmonton.taproot.news
 
I have little evidence aside from anecdotal, but I suspect these apartment vacancy numbers will look less horrifying when universities are back in person. A huge chunk of students at u of a (and other schools i'm sure) are learning virtually from outside the city/province/country.
 
How many of these are also really poor quality builds from the 80s that need upgrades, but they aren't worth putting money into compared to markets like Vancouver? Amazes me how many ugly apartments and condos we have, especially in the core. The difference of 900 vs 1100 a month is huge in quality. Not surprised the old ones can't be rented.
 
I'm guessing that you have never rented or owned in the Westend...

Many of these are built well, but at 40-50 years on... major work is often required. They also were built when a 2bdrm was 1500sqft and common area pools/hot tubs were common.
 
^^^^^
covid has been blamed for lots of things but it’s also responsible for a big part of this. while oil prices and local shutdowns get a lot of blame, covid has suspended the arrival of most of canada’s previously forecasted 400-500,000 immigrants last year and the first part of this year looks similar. instead of whining to the feds about kxl we would be better off lobbying for as much of that to come to edmonton as possible.
 
Very true Ken, but I also wonder how many people will continue to choose Edmonton for immigration, with us now having a higher unemployment rate, and future economic prospects diminished to lower oil prices. Generally immigration in Canada flow to Toronto, Vancouver, Montreal, then secondly to economic hotspots (which has recently been Edmonton, Calgary). Will be curious for sure to see if immigration continues at a similar pace post-Covid.
 
jason403 said:
Very true Ken, but I also wonder how many people will continue to choose Edmonton for immigration, with us now having a higher unemployment rate, and future economic prospects diminished to lower oil prices. Generally immigration in Canada flow to Toronto, Vancouver, Montreal, then secondly to economic hotspots (which has recently been Edmonton, Calgary). Will be curious for sure to see if immigration continues at a similar pace post-Covid.
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I think in terms of international immigration, we'll still continue to receive 20-30k a year, just like previous years especially with the existence of large immigrant communities in the city. Established immigrant communities attract more immigrants so I would think we're in a very good position despite the unemployment rate and short term economic prospects.
 
Kosy123 said:
I think in terms of international immigration, we'll still continue to receive 20-30k a year, just like previous years especially with the existence of large immigrant communities in the city. Established immigrant communities attract more immigrants so I would think we're in a very good position despite the unemployment rate and short term economic prospects.
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I really think we have an opportunity with remote working also. I have multiple friends in tech, finance, and media that are looking to move here from Toronto and vancouver for cost of living.

Why pay 800k for a townhouse with 2 bdrms to work from home and live in suburban sprawl? They would rather have a house for 500 or a condo for 400 in a bigger city (bigger than places like London or Kingston where some choose to move to).
 
thommyjo said:
I really think we have an opportunity with remote working also. I have multiple friends in tech, finance, and media that are looking to move here from Toronto and vancouver for cost of living.

Why pay 800k for a townhouse with 2 bdrms to work from home and live in suburban sprawl? They would rather have a house for 500 or a condo for 400 in a bigger city (bigger than places like London or Kingston where some choose to move to).
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Exactly, both of these opportunities make me believe Edmonton still has a really good future ahead of it despite what some pessimists might say. Breaking the 1,000,000 barrier essentially ensures decent population growth from both international and interprovincial sources.

Would it be to the same level of percentage growth as 2009-2014? Probably not. But I wouldn't be surprised to see double digit levels of growth year on year within the next 10-20 years at least, especially as housing costs become a bigger issue in the other larger CMA areas (except Calgary).
 
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