What were the rates of increases recorded?
An analysis of data from Great West Media on rental prices from the Government of Alberta and Urbanation’s December 2023 Rentals.ca report reveals a spike in the rate of increases in Alberta municipalities in 2023.
The report compared the annual change in average rent for a two-bedroom apartment in 66 municipalities, with the average price of a two-bedroom rental increasing by more than 9% in 2023 compared to the prior year.
Jasper was identified as having the fastest rising rent in Alberta – with an average increase at 39% last year - according to a report from Rocky Mountain Outlook. Three other areas followed closely with rent increases of 30% or more – Rocky Mountain House, Raymond and Penhold. The only city included in the top 10 for the highest annual change of average rent was Lloydminster, following a rent rise of 18% in the municipality compared to the prior year.
David Dale-Johnson, stan melton chair in real estate at the Alberta School of Business at the University of Alberta, said a mix of factors pushed demand and prices up in Alberta, including population growth driven by immigration, as well as high interest rates.
“A consequence of high mortgage costs is it causes people to shift from homeownership, or people who might consider buying a home, to go into the rental market to wait for lower rates. And you also have people who get in trouble because they’re overstretched with their mortgages and have to sell or choose to rent out their property and go and rent themselves in order to survive with their lender,” said Dale-Johnson.
He added remote work, influenced by the post-COVID environment, had also made out-of-the-way towns attractive. “I think the consequence of that is a lot of these smaller communities are more affordable, more attractive places to live. And people are saying, ‘Let’s go live in community X because I can work from home, they’re safer, they’re more fun, they’re close to ski areas’ – all of the above,” he said.
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