Rental inventory tight as homebuyers wait

In some parts of Canada, those who may have been planning to buy a new home are putting that move on hold.

With economic uncertainty weighing heavily on the thoughts of those in Alberta, rental inventories are under pressure as renters choose to stay put. Despite rising rents, many view buying in the current climate as a risk they’re not prepared to make.

The Calgary Herald reports that apartment building owners Boardwalk Real Estate Investment Trust has seen increased demand for rental homes.

CMHC expects rents in Calgary to be 2 per cent higher this year compared to 2014 and Boardwalk says that its funds from operations, a gauge of the profitability of its REITs, have increased by 11.8 per cent in the first quarter of this year with occupancy rates above 98 per cent.