Wednesday, May 16, 2007

Vacancy Rates at 30 Year Low

Edmonton's vacancy rates will drop to an unbelievable 0.7% and are expected to fall even lower to 0.5% in 2008.

"Strong demand from newcomers and a shortage of new units entering the market will reduce vacancy rates to 0.5 per cent in 2008" Canada Mortgage and Housing Corporation

Low vacancy rates means a tighter rental market and rents will have to increase accordingly.

"The average rent for a two-bedroom unit will increase from $808 per month in October, 2006, to $970 in October, 2007," CMHC predicted. "Further gains will push the average two-bedroom rent to $1,115 in October, 2008."