Edmonton Real Estate Market

[Avenuer]

You think so? Are there that many proformas that now suddenly make sense with this property tax shift that we're going to see a boom in multifamily construction? They already admit there will be zero savings passed along to renters outside of the possibility of bringing more product to the market.

Frankly, this sounds like a regressive policy that shifts tax burden from big property ownership groups to private citizens (all while in a budget/revenue crunch??) all for some idea of "equity".

As a residential property owner, I have no problem paying an extra ~$10 per year to even the property tax playing field between purpose-built residential and condos. It's peanuts in the grand scheme of things (less than $1/month lol).

 

[David A]

Edmonton kills 50-year-old higher apartment tax, other homeowners will pay more

Owners of rental apartments in Edmonton will get 11.7 per cent tax cut over 5 years. City council voted 7-6 to remove a 50-year old policy

edmontonjournal.com

This seems to make total sense from a fairness perspective, however given that homeowners look at their property tax bill closely and renters don't get one, the shift might not be so great politically (ie. the group that pays more sees it, it is not as visible to the one that benefits).

It also makes sense in terms of trying to keep rental accommodation affordable, but not sure how much of the savings will be passed on in a time of declining vacancy/increasing rents.

 

[TAS]

It also makes sense in terms of trying to keep rental accommodation affordable, but not sure how much of the savings will be passed on in a time of declining vacancy/increasing rents.

This is a Canadian stat, but scary to see that kind or rent increase.

Canada's largest apartment landlord reports record rent turnover in Q4 - BNN Bloomberg

Canada’s largest apartment landlord is reporting record rent turnovers in its latest quarter.

www.bnnbloomberg.ca

 

[IanO]

Jesus.

I received an 11% and it was hard to eat.

 

[JuliallThat]

This seems to make total sense from a fairness perspective, however given that homeowners look at their property tax bill closely and renters don't get one, the shift might not be so great politically (ie. the group that pays more sees it, it is not as visible to the one that benefits).

It also makes sense in terms of trying to keep rental accommodation affordable, but not sure how much of the savings will be passed on in a time of declining vacancy/increasing rents.

On the large multi-unit buildings I think you're right, but I imagine this could have a larger impact on smaller buildings 4-10 units. The threshhold for an apartment tax being only 4 units while we're trying to encourage quadplexes and other missing middle sized developments could have been a pretty big disincentive to prospective landlords.

 

[TAS]

Want to solve the housing crisis? Build these!

Skip to the 13 minute mark if you just want to see the answer, but whole thing is worth a watch from cbc.

A Vancouver architect shares plans for a 13 unit missing middle housing plan on a standard lot.

 

[occidentalcapital]

If I recall, our downtown population is around 14-15000. Which makes me suspect that stats can is arbitrarily identifying populations by a different measure rather than the more correct usage of municipal wards.

Or is it that our wards are actually quite arbitrary?

 

[occidentalcapital]

 

[occidentalcapital]

Boardwalk, probably the largest landlord in Edmonton, says that the Edmonton market is now performing strongly.

"Edmonton, which had been experiencing competitive market conditions from new supply of multi-family suites entering the market as well as challenging economic conditions, has realized an increase of 292 bps in occupancy compared to the same quarter in the prior year. The increase is a reflection of the continued improvements to market conditions within this segment"

https://www.bwalk.com/media/35262/bwalk-2022-ar-fncl-full-book-rgb-f.pdf

 

[IanO]

Canada Immigration Outlook

Rising Immigration — Key to Canada’s Population Growth and Commercial Real Estate Demand

www.marcusmillichap.com

 

[IanO]

https://www.linkedin.com/in/scott-figler-a9b7147?miniProfileUrn=urn%3Ali%3Afs_miniProfile%3AACoAAAFZ9hcBs3TLpBp-SFG-VFOse5h4r2rX8Hs&lipi=urn%3Ali%3Apage%3Ad_flagship3_feed%3B5mhrHMfYRk%2BHyIqRFcAs8w%3D%3D

 

[occidentalcapital]

https://www.linkedin.com/in/scott-figler-a9b7147?miniProfileUrn=urn%3Ali%3Afs_miniProfile%3AACoAAAFZ9hcBs3TLpBp-SFG-VFOse5h4r2rX8Hs&lipi=urn%3Ali%3Apage%3Ad_flagship3_feed%3B5mhrHMfYRk%2BHyIqRFcAs8w%3D%3D

Amazing to see how the market has managed to keep rates flat, juxtaposed with the massive industrial absorption. That kind of dichotomy presents some huge opportunities.

 

[IanO]

https://www.cbre.ca/-/media/project/cbre/dotcom/americas/canada-emerald/insights/canada-market-outlook/2023-Canada-Real-Estate-Market-Outlook

 

[David A]

It is interesting to see where we rank compared to other cities regarding office vacancy.

I didn't realize there were 8 with higher vacancy and that LA and Seattle, which I thought were doing better, were not that far off from us.

 

[Garneau2Go]

I don't want to say that we're doing "good", but that chart really does put the office vacancy rate into perspective and it's a bit comforting that bigger cities like Houston and Atlanta are dealing with the same issue.

That Calgary number is wild. I would have thought we were a lot closer in vacancy but not that different. The linked PDF has Calgary's downtown inventory at over 40 million Square feet vs our 16; having a third of their downtown empty is brutal.