Nope. Its not the economy. Its supply. There are charts that track available units for each type (apartment, main floor, basement suite, whole house, etc) on the landlord menu of Rentfaster.com. I can look at almost every category and see that the supply is up from what it was a year ago.
eg. Last year on Sept 1 there were **1066 **two bedroom apartments available
This year on Sept 1 there were **1468 **two bed room apartments available
Therefore, average rent for those apartments last year was 2335. This year its **2251 **and dropping. Currently the average has now dropped to **2137 **as of last week. Thats down 8.4%
The rental market is pretty simple. When there’s more supply prices drop. When there’s more demand, prices go up.
You clearly don’t understand how demand works. If demand drops, it looks like there’s more supply.
If you look at the change in population (it increased) and total units in the province(it increased, but not as much) total units per capita has gone down (a decrease in supply)
No those supply numbers are hard numbers. There were 402 MORE two bedroom apartments this year than last year, a 38% increase over last year. Calgary’s population has gone up but only about 5%.
Thats an EXCESS SUPPLY of apartments because the number keeps rising. If people were snapping them up as fast as they were coming available that number would be steady or dropping and rents would be rising. They’re NOT rising because there is excess supply and renters can shop around and negotiate on rent prices. which is why rents are 8 to 10% LESS than last year at this time even though there were still 100,000 people moving to Calgary.
Many out of province investors have flooded into Calgary in the last couple of years, which means many more rentals on the market as they snap up any housing they can find and turn them into rentals.
So your last statement is incorrect. Population has increased but rental supply has increased even more than the demand.
I have been a landlord in Calgary for over 40 years now and we’ve been through several excess demand and excess supply cycles because of our variable economy. We are obviously in an excess supply cycle.
Do you not understand percentages? Do you think there are only 1400 total two bedroom apartments in Calgary? The percentage change in available listings for sale does not in any way show you how many new units were created. Those are just how many people are currently trying to sell and don’t reflect net construction at all.
Calgary grew it’s population by 100,179 people in 2024 but it’s total housing completions were only 21,084 total units. Given that the average housing unit doesn’t even come close to having 5 people in it (the average is usually somewhere in the high 2s) that means the total supply per capita went down.
Your lack of understanding is frustrating, especially since I know exactly what Im talking about.
Calgary rentals are most often NOT from new builds so the number newly built in Calgary is the least significant factor. They are mostly used homes or apartments that are BOUGHT and converted to rentals. That’s where the surplus comes from - when you live in BC and can sell one house there for 1.8 million and come to Calgary and buy THREE 600,000 homes or a small apartment block and rent them out, its a smart financial move.
Im done with the gaslighting my friend. I manage a landlords group, I have 120 landlords in my group we discuss this stuff weekly.
Nope. Its not the economy. Its supply. There are charts that track available units for each type (apartment, main floor, basement suite, whole house, etc) on the landlord menu of Rentfaster.com. I can look at almost every category and see that the supply is up from what it was a year ago.
eg. Last year on Sept 1 there were **1066 **two bedroom apartments available This year on Sept 1 there were **1468 **two bed room apartments available
Therefore, average rent for those apartments last year was 2335. This year its **2251 **and dropping. Currently the average has now dropped to **2137 **as of last week. Thats down 8.4%
The rental market is pretty simple. When there’s more supply prices drop. When there’s more demand, prices go up.
You clearly don’t understand how demand works. If demand drops, it looks like there’s more supply.
If you look at the change in population (it increased) and total units in the province(it increased, but not as much) total units per capita has gone down (a decrease in supply)
No those supply numbers are hard numbers. There were 402 MORE two bedroom apartments this year than last year, a 38% increase over last year. Calgary’s population has gone up but only about 5%.
Thats an EXCESS SUPPLY of apartments because the number keeps rising. If people were snapping them up as fast as they were coming available that number would be steady or dropping and rents would be rising. They’re NOT rising because there is excess supply and renters can shop around and negotiate on rent prices. which is why rents are 8 to 10% LESS than last year at this time even though there were still 100,000 people moving to Calgary.
Many out of province investors have flooded into Calgary in the last couple of years, which means many more rentals on the market as they snap up any housing they can find and turn them into rentals.
So your last statement is incorrect. Population has increased but rental supply has increased even more than the demand.
I have been a landlord in Calgary for over 40 years now and we’ve been through several excess demand and excess supply cycles because of our variable economy. We are obviously in an excess supply cycle.
Do you not understand percentages? Do you think there are only 1400 total two bedroom apartments in Calgary? The percentage change in available listings for sale does not in any way show you how many new units were created. Those are just how many people are currently trying to sell and don’t reflect net construction at all.
Calgary grew it’s population by 100,179 people in 2024 but it’s total housing completions were only 21,084 total units. Given that the average housing unit doesn’t even come close to having 5 people in it (the average is usually somewhere in the high 2s) that means the total supply per capita went down.
Those stats are from the city itself: https://www.calgary.ca/content/dam/www/cfod/finance/documents/corporate-economics/housing-review/Housing-Review-Q4-2024.pdf
I really don’t know how you’ve managed to get so far in life given how bad you are at understanding math. I suspect you’re just lying to be honest.
Your lack of understanding is frustrating, especially since I know exactly what Im talking about.
Calgary rentals are most often NOT from new builds so the number newly built in Calgary is the least significant factor. They are mostly used homes or apartments that are BOUGHT and converted to rentals. That’s where the surplus comes from - when you live in BC and can sell one house there for 1.8 million and come to Calgary and buy THREE 600,000 homes or a small apartment block and rent them out, its a smart financial move.
Im done with the gaslighting my friend. I manage a landlords group, I have 120 landlords in my group we discuss this stuff weekly.