Calgary's rental vacancy rate plunges to level not seen since 2014: CMHC

Rental properties is shown in Calgary, Alta., Tuesday, March 12, 2019. THE CANADIAN PRESS/Jeff McIntosh

A new report from the Canada Mortgage and Housing Corporation (CMHC) says a surge in the rental market last year, due to immigration and higher mortgage rates, has drastically dropped the country's vacancy rates.

Calgary was one of many major cities that experienced a huge drop – moving from 5.1 per cent to 2.7 per cent between 2021 and 2022.

The city's vacancy rate hasn't been that low since 2014, the CMHC says.

Markets also tightened in Canada's largest centres, Montreal, Vancouver and Toronto.

"The overall average rent growth for two-bedroom purpose-built apartments common to 2021 and 2022 surveys was 5.6 per cent. This is a new annual high, well-above average rent growth recorded between 1990 and 2022," the CMHC said in a release.

"Higher rent-growth for two-bedroom purpose-built rents was widespread across Canada."

According to the CMHC's report, the average rent of a two-bedroom unit in Calgary went up by 6 per cent to $1,466.

Officials say affordability is still a big concern because "not enough homes are considered affordable" in Calgary.

"When comparing household income with monthly rent, only about 5 per cent of the purpose-built rental universe is considered affordable for households earning less than $36,000 per year," the CMHC said.

"The majority of the units are bachelor or one-bedroom units, which are unsuitable for families."

Only five of the 37 census metropolitan areas included in the report reported significantly higher vacancy rates in 2022 than in 2021, CMHC says.