With the rental market in Calgary tightening and costs going up, it could be good news for home sellers and a great time to buy a home as well. Several factors are playing into the increasingly tight rental situation in our city, including displaced flood victims and post-secondary students returning. According to CMHC, rental vacancy in Calgary is at a mere 1%, making it the lowest in the country. Naturally, the demand for rental space is driving the cost to rent even higher, so what does that mean for the marketplace?
Well, with thousands of Calgarians still displaced from their flood-damaged homes, it’s becoming a tough situation for students. According to SAIT, 30% of their students normally live outside the city, and that’s just one of the several post-secondary institutions here. And with so many ‘choice’ applicants for landlords, it’s sort of like applying for a job in a tight economy, you’re up against a lot of competition.
So why you ask, does that amount to a good time to buy? With rental costs as high as they are, it makes financial sense for many to purchase a home instead (not to mention a great investment). It’s beneficial on two fronts.
Firstly, if you’re in need of a place to live, you can be paying the same amount towards a mortgage (or maybe even less), and paying down a home you own rather than someone else’s. Secondly, it’s a great investment opportunity to buy a place and rent it out, especially with demand as high as it is in our city right now.
If you have questions about the current housing market in Calgary, please feel free to contact me anytime.
