Around 5,000 new rental units will be added to Edmonton’s local market in the near future thanks to record investor interest in the city.
There are currently 46 apartment developments under construction in the region, according to CRBE. Prior to this boom, an average of 1,000 units was added to the market thus contributing to the low vacancy rate.
The booming local economy – primarily driven by the oil and gas industries – continues to attract workers, with a projected 68,100 people expected to flock there this year. Almost 100,000 people migrated to Alberta in 2013, according to CMHC estimates.
Edmonton recorded a vacancy rate of 1.2 per cent in the last quarter of 2013, down substantially from the 1.7 per cent during the same quarter in 2012.
Sales volume involving existing apartment buildings totalled more than $301.5 million in 2013, up 35 per cent year-over-year. Much of the new development activity is focused on central Edmonton.
While multi-family inventory in the region remains critically low, this pressure is expected to ease during 2014 as developers complete construction of a number of buildings.
Related Article: Prices to rise in Edmonton by 3%
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