[darwink]

There are plenty of apartments for rent in Calgary's core and a lot more under construction. This is not a supply issue in my mind. Most of the availability is in the newer, 'amenity rich' buildings that are all asking for above average rental prices. I would say that is where the increase in prices comparison is mostly coming from.

And the new supply at the top end is likely to take awhile to filter through, especially when the market is tighter. I think the real estate term for this is 'compression'.

The top end of the existing market didn't largely move to the new towers because they seemed expensive. But demand continued, and now their current places are rising more towards the amenity rich places. The answer is more supply and time

Add to that, since only available units have price transparency for market surveys like this, there is pull towards the rates in the amenity rich buildings, as they would skew the results upwards as being a high percentage of available units until they've reached lease-out.

 

[JonnyCanuck]

I guess not a supply of all properties but a supply of reasonable properties. People can only spend so much, especially if they're being priced out of buying.

I would agree with that assessment. However most of the new purpose built projects under construction or planned are more of the same .. prime locations, higher featured, nicer amenities. There are a handful of affordable housing projects (driven by the city) planned but in terms of total units, it is way short of demand. It could be that those office conversion projects (Barron building, the two on 9th Ave & 1 St SE) will aim for more affordable housing but those projects are all stalled.

 

[darwink]

I would agree with that assessment. However virtually all of the new purpose built projects under construction or planned are more of the same .. higher featured, nicer amenities. Developers are going to have to start aiming for lower $/sq ft. and build accordingly.

I think the 10th Ave, 14th Street projects will be closer to the labour housing level, but we will await marketing material.

To a large extent, just being new is a quality all its own. A labour housing unit with a dishwasher and washer dryer is going to command a premium.

A good example is Kingsland Junction https://app.tricocommunities.com/community-search

Even the Gray, which looks to be the cheapest, has washer, dryer, dishwasher in a $1200 a month unit. https://app.tricocommunities.com/co...ay/model-search/model/jr-1-bed1-bath-477-sqft

 

[CalgaryTiger]

It seems too simple: Build a barebones non-profit property and even with below market rental prices you'd be able to pay off the loan or whatever type of mortgage they get for those properties.

To beat the dead horse, the city has plenty of under utilized C-Train Park and Rides that would be well suited to a single-digit-story wood frame building.

That's over simplifying it because there's no way it's that easy but it's not like the demand for a new below market rental isn't there. And it's not going away with how wages continue to be well outpaced by inflation (even as inflation flattens out).

 

[FCC1982]

Another article on Calgary’s rental market.
Looks like we can look forward to more residential high rise construction downtown, EV, Beltline for the next few years at least

Calgary’s rental market soaring into a record year

Average rents are hitting $2.57 per square foot, the highest recorded rent per square foot in the last five years, while per-door sale prices are about half that of Vancouver

www.westerninvestor.com

 

[MichaelS]

I would agree with that assessment. However most of the new purpose built projects under construction or planned are more of the same .. prime locations, higher featured, nicer amenities. There are a handful of affordable housing projects (driven by the city) planned but in terms of total units, it is way short of demand. It could be that those office conversion projects (Barron building, the two on 9th Ave & 1 St SE) will aim for more affordable housing but those projects are all stalled.

Apart from the Barron Building, are the other conversion projects stalled? I thought they were just moving through the approvals process at this time.

 

[JonnyCanuck]

Another article on Calgary’s rental market.
Looks like we can look forward to more residential high rise construction downtown, EV, Beltline for the next few years at least

Calgary’s rental market soaring into a record year

Average rents are hitting $2.57 per square foot, the highest recorded rent per square foot in the last five years, while per-door sale prices are about half that of Vancouver

www.westerninvestor.com

The writer of this article must have borrowed from another article written over a year ago and did not pay attention to statements made about the Arris project and the sequence of events. The first Arris by Bosa tower has been finished for what ...two years or more? The second tower did not just start construction this past summer as stated. It is nearing completion

 

[JonnyCanuck]

Apart from the Barron Building, are the other conversion projects stalled? I thought they were just moving through the approvals process at this time.

The Palliser One project was first tendered in September 2021 and has been on hold ever since so I would say that one has been stalled for reasons I don't know of.

 

[Surrealplaces]

There are plenty of apartments for rent in Calgary's core and a lot more under construction. This is not a supply issue in my mind. Most of the availability is in the newer, 'amenity rich' buildings that are all asking for above average rental prices. I would say that is where the increase in prices comparison is mostly coming from.

Very interested in the CMHC study. Two months now! The rent reports from firms promoting some service or another drawing data from extremely limited sources I’m not prepared to trust. If it’s accurate condo prices are going to have a mighty jump over the next 6 months.

Agreed, it's hard to tell where the increases actually are due to these reports not having all the available info, but I would bet that they are going up across the board everywhere. Maybe not as high as 22% everywhere, but maybe even more in some cases.
I guess the term 'supply issue' kind of depends. Vancouver, Toronto and other cities with supply issues also have plenty of places for rent, with plenty more under construction, but for the people looking for a place to rent it feels like there is a supply issue, as it's getting harder to get the right place that fits their budget and needs. I think we're going to see more multi-family coming down the pipe.

 

[UrbanWarrior]

Calgary rental prices rise 22% in a year: National Rental Report

A new report released Tuesday confirmed what Calgary renters already know: the cost of renting an apartment in the city is skyrocketing.

calgary.ctvnews.ca

Calgary is apparently now the third most expensive city to rent in after Toronto and Vancouver.

Edit, it's actually the third highest increase after Tor and Van. The wording made it sound like the third most expensive, but is actually the 25th most expensive. Looking at the 25 markets ahead of Calgary, almost all are Southern Ontario GTA, or the coast. I wonder if this will spur on more purpose built rental, or more condo projects marketed to Ontarians.

September 2023 Rentals.ca Report

rentals.ca

I’m really worried about this come rent renewal time in May. I don’t want to move, but couldn’t even afford a 10% increase let alone 20+

 

[Chowda7]

Calgary Herald: Long-awaited access to new northwest Calgary park to be secured.

Long-awaited access to new northwest Calgary park to be secured

Long-awaited access to the new Haskayne Park in northwest Calgary and a connection to Glenbow Ranch Provincial Park has been secured

calgaryherald.com

 

[YYCguy]

O I’m

Calgary Herald: Long-awaited access to new northwest Calgary park to be secured.

Long-awaited access to new northwest Calgary park to be secured

Long-awaited access to the new Haskayne Park in northwest Calgary and a connection to Glenbow Ranch Provincial Park has been secured

calgaryherald.com

i still don’t understand where the new access will be. I even tried to Google the park’s location on Google maps and it doesn’t clearly show it.I’m a techno idiot though (I don’t even know how to post pictures on here).

 

[Surrealplaces]

This is good news. IIRC, this stretch of park is one of the pieces needed to complete the bike path from Calgary to Cochrane. The access hasn't been decide yet, but there will be roadway and pathway access both. It would be nice if pathway access was down along the river somewhere, but I'm guessing it'll be from Tuscany and TWP RD 252.

 

[RolleyMakr_168]

Found this on Cairo's site

 

[MichaelS]

Calgary | Riverpark | 18m | 6s | M2SC | Casola Koppe

Chinatown proposal for this location. 52 units with 2 CRUs.

skyrisecities.com

Thread for that one.