No rental shortage, says landlord group
There is no shortage of rental apartments in Calgary, says a recent survey.
“I would say that probably 20,000 apartments turn over every year in all areas of the city,” says Gerry Baxter, executive director of the Calgary Apartment Association.
His comments came after the release of the second annual Calgary Rental Market Turnover Survey, a co-operative effort be- tween association and Canada Mortgage and Housing Corp.
The survey was done during April and May based on 2008 data.
The main reason the turnover in apartments occurs is more renters are taking advantage of low financing costs and reduced house prices to get into ownership, says the survey
“We found a turnover rate of 39 per cent based on responses from CAA membership,” says Brenda Mullis, business strategies analyst for the Prairies and Territories for CMHC.
The survey results were based on responses from 68 managers of 116 buildings, accounting for nearly 11,300 rental apartments across Calgary.
Out of that total, 4,355 units turned over last year.
Baxter says when these numbers are extrapolated over the complete inventory of rental apartments — well in excess of 50,000 units — the turnover rate would reach about 20,000.
“There are plenty of apartments available despite a vacancy rate that has been reported to be about four per cent,” he says.
Mullis says survey respondents were asked to give the three main causes for turnover.
After taking the opportunity to get into ownership, the next two responses were job relocation and eviction.
Eviction is the newest member of the top three, replacing financial constraints due to rent rate increases.
The highest turnover rate in the city occurred in the down- town sector at 54 per cent.
Of the 1,601 turnovers last year, the vast majority were one-and two-bedroom units.
Gerry Baxter of the Calgary Apartment Association.