Wednesday, March 03, 2010

Alberta's upcoming labour squeeze will affect rents.

It's hard to imagine a labour shortage with unemployment at 6.6% but apparently there is one looming around the corner.

Alberta braces for next labour squeeze - "A rebound in the oil patch is sparking fears of a labour shortage like the one that led to sky-high wages and mass importing of skilled tradespeople ...."

“We are about to start running into, believe it or not, another labour shortage,” “It is going to be significant again,” says Brian Vaasjo, president of Capital Power Inc.

As the need for labour increases so will the need for rental units as in-migration increases. A look at the current rental market in Edmonton would show a lot of selection at very competitive prices. This is going to slowly change.

We're seeing a lot of "bids" on rental units. If we post at $1595 the prospective tenant throws out a $1400 because sometimes landlords will take what they can get.

Simple economics of supply and demand will stop the "bids" and even allow for an increase in rents.

1 comment:

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