- Transit located within walking distance.
- Green space located within walking distance.
- Variety of retail amenities and restaurants within walking distance.
- Very good access to major roadways such as 33 Avenue SW & Crowchild Trail.
- The average income within a 5-kilometer radius of the subject property is $155,131, which is higher than the average income of $135,732 in Calgary.
Calgary Real Estate Market
The rental market in Calgary is experiencing strong and sustained demand, driven by a rapid increase in population and rising homeownership costs in the single-family market. In the first half of 2023, demand continued to grow, with over 100,000 new residents in Alberta and a 4.5% year-over-year increase in the second quarter. The influx of immigrants and domestic migration is expected to keep rental needs high throughout 2023.
As mortgage rates rise due to recent Bank of Canada rate hikes, there is a shift in housing demand towards the multifamily sector. Construction activity has improved since 2020, with a record-high level of completions in 2022. In 2023, new supply is expected to remain elevated but may moderate compared to the previous year due to increased construction and financing costs. Despite this, vacancy rates are projected to decrease below 2.0% by the end of the year.
Rents are expected to increase by double digits, with an annual rent increase potentially surpassing 10.0%. The absence of rent control and the combination of high demand and limited supply contribute to this acceleration. The multifamily outlook for 2023 anticipates continued employment growth, with the job market benefiting from population gains and elevated oil prices.
In terms of investment highlights, the total dollar volume transacted experienced a slight contraction in the first quarter of 2023. However, interest rates stabilizing in the spring led to a rapid increase in total dollar volume. The average sale price in Calgary has been on an upward trajectory, approaching $185,000. The city’s multifamily market has relatively stable cap rates, around 5.0%, making it attractive to investors amid strong fundamentals.
Key points from the previous year include a record high in construction activity, declining vacancy rates, and rapid rent growth. The Beltline and Southeast neighborhoods saw the highest number of deliveries, contributing to the overall market dynamics. Vacancy rates dropped to an eight-year low, with significant rent growth in Fish Creek, the Northeast, and Downtown submarkets. Overall, Calgary’s multifamily sector appears robust, with positive indicators for continued growth in 2023.
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