First of its kind data by a market research firm shows that, despite recent economic challenges, Calgary and Airdrie's new, purpose built rental apartment market is holding its own.

The firm, Urban Analytics, analyzed data on newer market builds, defined as buildings five years and newer and found steady absorption of new rentals, with the low rise sector outpacing high rises.

Senior Market Analyst Kimberley Poffenroth says the research shows that the market is not nearly as dire as some recent reports have been suggesting.

"To give you an idea of Calgary and Airdrie, in the low rise sector you've seen an occupancy rate of 73 per cent in the newly released units, which is 535 units out of 736 units.  Those are the new, actively marketed units that have come to market in the last five years."

For high rises, only 748 of 1,487 units, or 51 per cent have been leased.  However, factoring only those projects that have been actively leasing for two months or more, the number of leased units jumps to 72 per cent.  

Poffenroth says that, if you're planning to rent, your money will go a lot further in Airdrie than it will in Calgary.

"For example, $1,254 on average will get you 882 square feet of living space in Airdrie"  Comparitively in the city, outer north and south neighbourhoods offer 829 square feet costing $1,453 per month while inner northwest neighbourhoods have an average monthly rent of $1,375 for just 661 square feet.  

Because this is the first data that Urban Analytics has released on the new rental market, Poffenroth can't really say if things are starting to bounce back.  "That's a little hard to say on the rental market since we haven't been tracking it for as long.  Even though there has been softer conditions in the rental market and we have seen some of the leasing campaigns that are offering one or two months of free rent, that's something we see even in a strong market."

Urban Analytics began tracking the new apartment rental market in the fall of 2016 in response to an increased demand from various stakeholders, including developers and construction lenders.

 

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