“Private landlords in Alberta have endured a rough ride over the past 24 months, rental rates dropped while vacancy rates climbed rapidly,” Shamon Kureshi, president and CEO of Hope Street Management Corporation said. “Leading indicators suggest that there is cause for optimism in 2017 as rental rates appear to have bottomed out, and can only go in one direction from this point forward - up.”
According to Hope Street, rental markets across Alberta have been struggling mightily; the number of available listings peaked at 8,200 in Calgary and 5,200 in Edmonton at the end of last year.
However, Hope Street claims rental prices have stabilized, according to a six month price review.
“The feedback from our renters seems to suggest that there are several factors at play to cause a market shift, including: an improved outlook on oil and gas in the province, less new rental properties coming online, and a slowing of outward migration away from the province.”
“Edmonton’s current average rental rate of $1161 per month appears to have been largely stable in the past 90 days, and Calgary current average rental rate of $1469 per month shows a slight trend upwards,” Hope Street said.
Alberta-based investors have been hard-hit as a result of the oil downturn; and while this report is certainly the first good news current and would-be homeowners have heard, many will likely hold off on jumping into the market until further evidence comes to light.
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According to one recent report, rents have bottomed out and are on the upswing.