2016 saw the fall of rents and the rise of vacancies
‘Oversupply will continue’ this year, and so will low prices, realtor says
According to Altus Group’s housing report, the vacancy rate for private rental apartments in Canada’s major markets was 3.4 per cent overall in 2016, up slightly from 3.3 per cent in 2015.
Overall, 12 of Canada’s 34 major markets posted higher vacancy rates, 14 markets recorded lower vacancy rates, and the remaining eight were relatively stable (within a 0.1 per cent change). The Edmonton market saw one of the nation’s highest increases in vacancy rates, surging from 4.2 per cent in 2015 to 7.1 per cent in 2016. Edmonton was joined by St. John’s, N.L. (7.9 per cent) and Saskatoon (10.3 per cent).
As a result of increasing vacancy rates, the Edmonton area saw a significant decline in average rents during 2016, dipping 3.5 per cent after a 2.2 per cent increase in 2015. Among Canada’s major markets, only Calgary saw a larger drop in average rent than Edmonton in 2016, falling 7.5 per cent.
An abundance of inventory was the primary factor in Edmonton’s rising vacancy and dropping rent. The Altus Group report found that rental apartment starts hit 978 units in 2016, compared to 2,508 in 2015, while rental apartment completions totalled 3,259 units in 2016, up from 2,424 in 2015. Edmonton also saw an increase in rental condominium vacancies, from 5.3 per cent to 6.8 per cent in 2016.
“In 2017, the oversupply will continue, thus the competition continues. Statistics will begin to reflect that most home values did, in fact, come down. It will appear that prices have come down at a faster rate than last year, but, in actuality, 2017 will be a repeat of 2016,” ReMax realtor Jeremy Amyotte said.
In 2017, the oversupply will continue, thus the competition continues.
“The condo market will continue to struggle. Townhomes and duplexes will continue to become a more popular option. Central areas and infill will continue their steady rise in popularity, including skinny homes — a new option that will keep trending.
“Secondary suites will be, now more than ever, a popular option, providing financial aid in mortgage payment. We’re even starting to see them more in new subdivisions, and council is considering allowing them in half duplexes and skinny homes. It’s a trend we can’t avoid.”
Edmonton’s Intelligence House Ltd., a real estate sales, marketing and market research agency, was recently ranked 14th on Alberta Venture’s 2017 Fast Growth 50 list. The honour recognizes Intelligence House for its efforts to establish a footprint in Alberta’s real estate industry just three years after the company was founded.
“This is an absolute thrill and honour to be included in the Alberta Fast Growth 50 for 2017,” Emmett Hartfield, partner and co-founder of Intelligence House, said in a news release. “To be recognized alongside so many resilient and thriving Alberta companies is something our entire team can be proud of. We strive for excellence in our industry, and it’s truly because of our team and clients that we have earned this honour. We are proud to be listed alongside so many other companies making a commitment to grow Alberta.”
Intelligence House saw 33 per cent growth of its sales and marketing team in the previous year, and Hartfield said this is especially significant for the company in a time when similar organizations have to downsize their teams.
For the past 19 years, the Fast Growth 50 program has been the most prominent ranking of Albertan businesses with a significant growth in revenue, assets, capital expenditures and employees over a three-year period. Jim Hole, owner of Hole’s Greenhouses and a certified professional horticulturist with the American Society for Horticultural Science, will hold a free indoor seeding workshop at the Enjoy Centre in St. Albert on Saturday at 1 p.m.
The workshop, which is titled Starting Seeds Indoors: Just Add Light and a Few Other Things, will demonstrate how to get seeds started indoors and show participants the steps required for success. The right containers, soil, lights, fertilizer, heat mats, moisture and temperature needed to get seedlings off to a great start will be discussed.
Additional workshops include Gardening for the Complete Novice, held on Feb. 11 and March 1 at 1 p.m. To register, visit holesonline. com.