Apartment vacancy rates fell in St. Albert in 2009, a trend that ran contrary to a significant uptick experienced in the wider Capital region.
St. Albert's overall vacancy rate fell to 2.3 per cent from 3.7 per cent from October 2008 to October 2009, led by a decrease in the availability of two-bedroom and larger apartments, according to a report released this week by Canada Mortgage and Housing Corporation (CMHC.) One-bedroom apartments became more plentiful, with the vacancy rate for that class rising to 2.6 per cent from 1.3 per cent.
Average rents in St. Albert rose about $50 a month for one-bedrooms and three-plus bedrooms while rents for two-bedrooms remained unchanged. The averages are $895 for a one-bedroom unit, $1,029 for a two bedroom and $1,206 for a three bedroom.
In the Capital region, the overall vacancy rate rose to 4.5 per cent this year, compared to 2.4 per cent in 2008.
"Vacancy rates in the three to five per cent range are what we'd consider to be a relatively healthy market where there's a reasonable amount of choice and landlords are not suffering financially," said Richard Goatcher, senior market analyst for CMHC.
"When your vacancies get close to five per cent there's usually some discounting going on," he said.
Property owners across the province are resorting to a wide variety of incentives in an attempt to attract renters, said Michael Guyette, vice-president of operations for Boardwalk Rental Communities, a large player in the rental business.
The company has seen a "fair increase" in vacancies across the province because jobs have dried up, largely because of a slowdown in the oil and gas sector, Guyette said.
"It's a renter's market right now. You can pick and choose what you want," he said.
In contrast to the CMHC figures, Boardwalk's lone St. Albert property — Sturgeon Point Villas — is running about 10 per cent vacant, Guyette said.
"It's been slow in December everywhere in Alberta," Guyette said. "We're doing what we can to bring in the business."
Pam Redford of St. Albert's Redford Property Management said apartment inventories have fallen in the last two months, in part because she's lowered rents by about $100 a month.
"Everybody's looking for the best bang for the buck — cheapest rent, longest commitment, nicest, newest," she said.
New properties move quickly in St. Albert while older units tend to linger on the market, she said.
2010 to be okay
Guyette is expecting 2010 to be an okay year, but not a banner one.
"We're just expecting to hold our own," he said.
CMHC's Goatcher predicts that vacancy rates will drop.
"We're probably going to see lower vacancy rates in the coming year largely because the economy is expected to improve. That should bolster demand," he said.
fact box data
1-bdrm. 2-bdrm. 3-bdrm. + Total
Vacancy rate (%) 2.6 1.1 5.1 2.3
Average rent $895 $1,029 $1,206 $1,033
ST. ALBERT APARTMENTS
1-bdrm. 2-bdrm. 3-bdrm. + Total
Vacancy rate (%) 2.6 1.1 5.1 2.3
Average rent $895 $1,029 $1,206 $1,033
