Era | 41m | 13s | Minto Group

JonnyCanuck

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It is condo, but a group of investors out of Ontario bought up a significant portion of them.
Those Ontario investors probably bought with the intent of renting the units. It will be years before there is any price appreciation in value if they are looking to resell. These units when completed will be added to the ever growing rental pool.
 

UrbanWarrior

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A pool that was extremely small in Calgary before this boom. That's why we still have under 4% vacancy. The demand is there, so expand the "ever growing rental pool".
 

JonnyCanuck

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A pool that was extremely small in Calgary before this boom. That's why we still have under 4% vacancy. The demand is there, so expand the "ever growing rental pool".
That vacancy rate may have been from 2019. I have not seen anything recent and we have thousands more units on the market since last year. With properties starting to offer free rent as a move-in bonus, something tells me the vacancy rate is much higher than 4%. The other thing is I don't know how they factor in condos that were purchased and the owner rents, when they calculate vacancies.
 

CCF

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28% of the housing stock in Calgary is rental.
This is very low relative to the national average (31%), Montreal (64%), Toronto (45%) and Edmonton (35%). I'd say this baseline coupled with changing dynamics (i.e. more people, particularly younger populations being comfortable with renting long term) and continued population growth (albeit at a slower pace than what has occurred in the past) is likely helping to fuel additional purpose built rental.
 

Calgcouver

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28% of the housing stock in Calgary is rental.
This is very low relative to the national average (31%), Montreal (64%), Toronto (45%) and Edmonton (35%). I'd say this baseline coupled with changing dynamics (i.e. more people, particularly younger populations being comfortable with renting long term) and continued population growth (albeit at a slower pace than what has occurred in the past) is likely helping to fuel additional purpose built rental.
Exactly, Calgary has always had a proportionately low amount of purpose-built rentals in comparison to other Canadian cities. It was super evident in the last boom years when Calgary had virtually no rental stock available and secondary suites became the big issue because something like ~70% of all rental units were illegal/informal suites in 2006. Adding PBR stock to the market is likely weeding out a lot of basement suites, and are providing new and decent apartments that are reasonably affordable for new builds. With the economy providing less high-paying jobs to make homeownership a simple route here, Calgary will normalize with other Canadian cities and can likely support more rental development in the short to medium term.
 

JonnyCanuck

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Exactly, Calgary has always had a proportionately low amount of purpose-built rentals in comparison to other Canadian cities. It was super evident in the last boom years when Calgary had virtually no rental stock available and secondary suites became the big issue because something like ~70% of all rental units were illegal/informal suites in 2006. Adding PBR stock to the market is likely weeding out a lot of basement suites, and are providing new and decent apartments that are reasonably affordable for new builds. With the economy providing less high-paying jobs to make homeownership a simple route here, Calgary will normalize with other Canadian cities and can likely support more rental development in the short to medium term.
Something I have noticed in the weekly DP application reports that the city publishes. There has been an explosion this year in permit applications for secondary suites. Now, some of that may be 'pandemic driven'. i.e we want grandma to live in our basement rather than a nursing home.
 

Calgcouver

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Something I have noticed in the weekly DP application reports that the city publishes. There has been an explosion this year in permit applications for secondary suites. Now, some of that may be 'pandemic driven'. i.e we want grandma to live in our basement rather than a nursing home.
My assumption is that it is likely that a lot of applications are coming in for secondary suites because many homeowners have lost there primary source of income (job) or have a reduced household income and are looking for a way to supplement that income with a rental suite to keep up with mortgage payments.
 

Surrealplaces

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Something I have noticed in the weekly DP application reports that the city publishes. There has been an explosion this year in permit applications for secondary suites. Now, some of that may be 'pandemic driven'. i.e we want grandma to live in our basement rather than a nursing home.
My assumption is that it is likely that a lot of applications are coming in for secondary suites because many homeowners have lost there primary source of income (job) or have a reduced household income and are looking for a way to supplement that income with a rental suite to keep up with mortgage payments.
I've heard of people wanting to do it for the extra income. In one case I know of, it's for their son and daughter in law to live at while they save up money. I guess in the end it's mostly related to extra money.
 

Beltline_B

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