Crisis mode: Expert says more renters are panicked as the market heats up even more
With the average vacancy rate for a single detached home in Calgary dropping and the average rental rate going up this month, renters are having an even tougher time finding a home for their families.
Thomas McCallum was told by his landlord that his family of six needs to vacate their house by August 31st, as its being sold. McCallum found this out right after he got the news one of his children has cancer.
“It was quite the shock. We already have enough on our plate as it is and now we have to find a new house. It’s crazy," said McCallum.
Between medical appointments and juggling work to afford what they have, McCallum says finding time to look for a new home is difficult. He said the cost of a new rental in the current market is also unaffordable.
“We spend about three hours a day checking rent faster, Facebook, Kijiji. We check all of these different companies to try to get a lead but we’re either getting ghosted or pre-screened, and they’re saying you got too many kids or they’re too young,” said McCallum.
“I’ve been in three bedroom homes the entire time and it’s never been an issue but they’re saying you have to fill a four bedroom, five bedroom or even a six bedroom and when you start going to those areas it's $5,000 to $6,000 a month for rent.”
RISING RENTS
According to statistics from property management company Hope Street, the average rental rate for all properties in Calgary has gone up by 28.9 per cent since January 1st. That figure last month was 25 per cent.
Compared to all other properties, the single detached home is in the highest demand. The average vacancy rate for this type of property in Calgary currently sits at 0.42 per cent, which is down from 0.6 per cent in May.
“We’re looking at a borderline crisis situation if not a full on crisis,"said Shamon Kureshi, CEO of Hope Street.. "The properties that we list are gone almost over night. If a property is available for a couple days that’s extremely uncommon,”
SUPPLY AND DEMAND ISSUE
Kureshi said there is a supply and demand issue for single detached homes. More landlords are taking advantage and selling their property and there isn’t a guarantee the new owners will rent.
“A lot of the landlords we are talking to are saying things like it’s been 10 years and I haven’t seen any gains in returns in my investment and now that the market has shifted and I can finally get a reasonable return,” he said.
“We’ve seen the market go up and we’ve seen it go down and these things can change almost overnight. A year ago no one saw this coming and I’d be willing to bet a year from now we’ll be in a very different market.”
For renters who are trying to get out of the rental market, with the Bank of Canada raising the interest rate again on June 1 and with the high costs of living, owning a home is just not attainable.
“It’s a lot of expenses going out and trying to make it all work. It’s tough but we are trying to explore that avenue but it probably won’t work very well,” said McCallum.
“We are pretty scared. Pretty worried. Worried we may not have a home.”
Hope Street predicts the average rental rate in Calgary will keep rising until the end of summer.
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.