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Edmonton Real Estate Market

BASE said:
Alberta is calling.

I understand why Edmonton is below most of those places on the list but not sure I follow why it would be cheaper than Winnipeg. Edmonton is larger and has seen faster population growth recently. That one I'm not sure makes sense to me.
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This is why development is so difficult in Edmonton. Many on this site think it is a very simple exercise, but it is not. Rental rates have barely moved year over year in comparison to Calgary. Pro formas that build in rental growth are faulty and they are a typical part of underwriting in other markets.
 
^Yes. It is exactly why we are not seeing as many projects go ahead in Edmonton. We need rates that cover development costs. That said, this is an average across the board and certainly newer projects do command higher rates.
 
Depending on your perspective, its probably better to be in a green city than the red ones. However, I doubt these things are permanently fixed and they could quickly change.

There are a large number of people in the red cities who are not wealthy but make a reasonable income desperately looking for a place where they can afford to buy a home or rent.

Even if a small percentage come here, it could change this.
 
Indeed for renters Edmonton appears on paper to be a fantastic option strictly looking at the income to rent ratio. I just have curiosity on the rent disparities between Calgary, Winnipeg, and Edmonton for example and what can explain it.

Is Edmonton just overbuilt currently compared to the other two in terms of available units per capita? Do Edmonton's suburban cities dominate the higher rent market a bit skewing city rental numbers?
 
I don't know about Winnipeg, but I believe Edmonton has more and older rental accommodation than Calgary, which would explain some of the difference. Also, where it is located (ie. suburban vs. downtown) could be a factor too.
 
Additionally, due to Edmonton's regional competitiveness with surrounding communities such as Fort Sask, Leduc, Spruce Grove, etc. The delta between renting and owning is very slim, and often can be cheaper to own. This impacts overall rental rates in the region. Similarly, the bedroom communities also act as a threat if council continues to restrict suburban housing supply.
 
BASE said:
Indeed for renters Edmonton appears on paper to be a fantastic option strictly looking at the income to rent ratio. I just have curiosity on the rent disparities between Calgary, Winnipeg, and Edmonton for example and what can explain it.

Is Edmonton just overbuilt currently compared to the other two in terms of available units per capita? Do Edmonton's suburban cities dominate the higher rent market a bit skewing city rental numbers?
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Interesting to observe this phenomenon. My recollection is that at least 3 big landlords have far more property in Edmonton than Calgary (despite all 3 being based in Calg): Boardwalk, Avenue living, and Mainstreet.
 
occidentalcapital said:
Interesting to observe this phenomenon. My recollection is that at least 3 big landlords have far more property in Edmonton than Calgary (despite all 3 being based in Calg): Boardwalk, Avenue living, and Mainstreet.
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these aren't developers, they are purchasers of existing assets.
 
IanO said:
Edmonton has a lot more 3 storey walk-ups that are nearing the end of their life-expectancy in many cases due to a lack of maintenance.
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If you took out 81st and 83rd ave alone, our average rent would probably increase 10%

But ya. Hard to justify paying $1500+ for rent on a one BR like Calgary when interest rates were so low that your mortgage payment on a $350k house with 5% down was $1300/mo.
 
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