Over-supply, fewer newcomers behind increasing vacancy rates

Vacancy rates in Calgary have spiked so far this year and are expected to rise for the foreseeable future, say industry insiders.

And with few signs of significant changes in the economy on the horizon, renters will enjoy plenty of choice and price flexibility, while landlords will need to get aggressive.

"Vacancy started rising pretty rapidly after the spring of last year and it's still been rising," said Gerry Baxter, executive director of the Calgary Residential Rental Association, which has about 850 members, representing between 65,000 and 70,000 rental units. There are more than 700 landlords in the association.

Condo developers using downturn as opportunity to build

The downturn in Calgary's economy is creating a much-needed opportunity for developers to reset and plan for the long-term, say experts, who also believe the apartment-style condominium sector stands to benefit the most.

Susan Veres, senior vice-president of strategy and business development for Calgary Municipal Land Corp. (CMLC), admits sales "have slowed" in the popular East Village community on the banks of the Bow River, but also said the timing of the current downturn is "almost fortuitous" for the up-and-coming area.

"It's serendipitous that we're actually focusing on construction this year," she said, whose company, CMLC, is wholly owned subsidiary of the City of Calgary that is currently revitalizing East Village.

CMHC expects renters to benefit from soft economic conditions

Rental vacancy rates in Calgary will rise to seven per cent by this fall, up from 5.3 per cent during the same time last year, according to Canada Mortgage and Housing Corp. (CMHC).

In its semi-annual housing market outlook released today, CMHC said two-bedroom rents are forecast to average $1,270 in October 2016, compared to $1,332 in October 2015.

"A rise in the purpose-built rental vacancy rate along will additional options in the secondary rental market will put downward pressure on rents this year," said the report. "Although incentives will continue to be offered, some landlords will also lower rents to attract tenants."

By the fall of 2017, CMHC expects the vacancy rate in the city to decline back to 5.5 per cent. The two-bedroom rent, meanwhile, is forecast to average $1,260.

New homes construction in Calgary fell by 19.3 per cent in January

According to Statistics Canada, investment in new housing construction declined overall in Alberta by 19.3 per cent in January 2016 over last year.

Spending in the province decreased in all dwelling types except apartment and apartment-condominium buildings, which rose 22.5 per cent to $195 million.

With spending falling from $849.5 million to $685.4 million, Alberta's drop was the largest decline nationwide, with Saskatchewan's 30 per cent decline amounting to a cut of just $30 million.

Beauty is in the eye of the beholder, say housing experts

The term "luxury" defies a single definition – especially when it comes to housing in Calgary, say experts.

"Luxury is specific to each individual, driven by their particular needs," said Kevin Mullen, president of the Empire Group of Companies, which has constructed dwellings in most of Calgary's upscale communities.

"If someone values the weekend lifestyle, then you might live in Springbank. If being proximate to the Glencoe Club is important, then you might choose Elbow Park. Those lifestyle decisions reflect into defining a luxury community."

Beleaguered sector takes brunt of economic downturn

Apartment-style condominiums were the hardest hit within Calgary's resale residential housing market in 2015, with price drops and inventory gains that outpaced both attached and detached products

On an annual basis, the apartment benchmark price slide by 0.4 per cent to $292,818 by the end of November, according to CREB®. In comparison, year-to-date benchmark prices in the detached and attached sectors during the same period actually increased by 1.7 and 2.1 per cent, respectively.

Yet more telling is how apartment prices reacted during the year, as it dropped by four per cent from $298,700 in January to $287,000 in November. During this period, benchmark prices in the detached and attached sectors declined by a more modest 1.5 and one per cent, respectively.

Condo herb garden project sparks sense of community

If you want to know what's going on in your neighborhood, just lean over the fence and ask what's growing in the garden.

That's a British saying that's as true in a Kent country cottage as it is in a downtown Calgary condo.

But how do you find the space?

For Marion Tompkins, retired and living in an Eau Claire apartment tower, it meant re-imagining some under-utilized space right under her nose into a communal herb garden.

In a city renowned for its freeways and sprawling suburbs, more residents are choosing to live closer to its centre — and even forgoing hopping behind the wheel altogether

Who needs to own a car? Not Jennifer Lee.

The 21-year-old moved to Calgary two years ago to study and work in the city's burgeoning IT sector. And like a growing number of millennials, she doesn't own a car and has no plans to own one soon.

While that may not sound altogether revolutionary, Lee represents a wave of change in a city renowned for its multi-lane freeways, suburban sprawl and increasingly congested roadways.

Calgarians drawn to more affordable alternative

After living in southwest communities of Midnapore and Evergreen for 27 years, transitioning to an apartment in Mission was an easy decision for Michelle Norman.

"Condo living was a very easy adjustment," she said. "I like the idea of being surrounded by a good mix of young and older residents as well as not having to worry about such things as yard work and snow removal."

Calgary city council votes unanimously for East Village development

In a rare move, all 13 members of Calgary's city council agreed to approve a once-controversial "carless" condo development in the East Village.

Located directly east of the old St. Louis Hotel, N3 is set to include 167 units that developer Knightsbridge Homes says are priced $70,000 less than comparable developments because of the lack of a parkade.

N3 buyers will get a furnished unit, as well as a free bicycle and $500 Car2Go credit.

"Everybody thought we were nuts," Knightsbridge president Joe Starkman said about the carless development. "There is a market out there for young people; the car just isn't a priority."