Fact Check: Vacancy Rates in Calgary Are Rising Due to Increased Rental Unit Supply
What We Know
Recent data indicates that Calgary's rental market is experiencing a significant increase in vacancy rates. The total rental market vacancy rate rose from 1.4% in 2023 to 4.6% in 2024, primarily driven by a substantial influx of purpose-built rental completions. Projections suggest that this rate could further increase to nearly 6% by 2025 as additional rental units become available (City of Calgary).
The Calgary multi-family market has seen a record-breaking 10,059 new rental units completed in 2024, which is nearly three times the total from 2023. This increase is attributed to the completion of projects that were delayed during the pandemic and a response to high demand (Colliers).
Analysis
The claim that rising vacancy rates in Calgary are due to increased rental unit supply is supported by multiple credible sources. The data from the City of Calgary indicates a clear correlation between the increase in rental unit supply and the rising vacancy rates (City of Calgary). Furthermore, the report from Colliers reinforces this by highlighting the record number of new rental units completed in 2024, which has significantly impacted the market dynamics (Colliers).
However, it is important to note that while the increase in supply is a primary factor for the rising vacancy rates, other elements such as economic conditions, population growth, and rental demand fluctuations could also play a role. For instance, the Canada Mortgage and Housing Corporation (CMHC) has forecasted that vacancy rates could drop to 1.1% in 2025, suggesting that market conditions may shift again (CBC). This indicates that while the current trend supports the claim, future developments could alter the landscape.
The sources used in this analysis are reliable, with the City of Calgary and Colliers being reputable organizations that provide data-driven insights into housing trends. The CMHC is also a credible source for housing market forecasts.
Conclusion
Verdict: True
The claim that vacancy rates in Calgary are rising due to increased rental unit supply is substantiated by data showing a significant increase in the number of rental units and a corresponding rise in vacancy rates. The evidence suggests a direct relationship between the influx of new rental units and the increase in vacancy rates, making the claim accurate.
