By Geoff Smith (@GeoffSmithLNN on Twitter)

Apartment vacancy down, rents up compared to last year

Nov 28, 2018 | 9:28 AM

LETHBRIDGE – The vacancy rate for apartments in Lethbridge is down, and rents are up, according to the annual Rental Market Report from Canada Mortgage and Housing Corp. (CMHC)

For the Lethbridge Census Metropolitan Area (CMA), the vacancy rate for all types of apartments was 4.7 per cent in October, down from 5.1 per cent a year ago. By comparison, the rate for all Alberta cities was 5.5 per cent, down from 7.5.

The biggest declines were for bachelor suites (3.4 per cent, down from 4.5) and one-bedroom units (which declined from 5.7 to 4.7 percent.) There was only a slight decline for two-bedroom units, from 5.1 to 4.9 per cent, while units of three or more bedrooms actually saw an increase, from 1.8 to 3.8 per cent.

The report indicates little change in the total number of rental apartments in the Lethbridge area – 2,715, an increase of only two per cent. In fact, there were slightly fewer bachelor and one-bedroom units available compared to a year ago.

Lethbridge’s vacancy rate is higher than only Calgary, Camrose, and Grande Prairie. Cities with higher rates include Edmonton, Brooks, High River, Medicine Hat, Red Deer, Strathmore, Sylvan Lake, Wetaskiwin, Whitecourt, and Wood Buffalo. Cold Lake and Lacombe were also higher than Lethbridge but saw declines of more than half.

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With a decline in availability becomes an increase in price. The average rent for an apartment in Lethbridge in October was $937, an increase of four per cent from last year’s $898. It breaks down as $692 for a bachelor suite (down from $701), $874 for a one-bedroom (up from $838), $981 for a two-bedroom ($937 last year), and a three-bedroom climbed from $1,068 to $1,099.

The average is still well below the average for Alberta cities, which was $1,117, up from $1,090. The most expensive rents overall are in Wood Buffalo ($1,416), then Calgary and Edmonton, followed by Canmore and Grande Prairie. The cheapest average rent is in Medicine Hat ($821, up just four dollars from a year ago.)

Lethbridge has the highest turnover rate of any Alberta city. Nearly half (48.2 per cent) of all apartments had different tenants than a year ago.

Canada’s largest metropolitan areas have some of the lowest vacancy rates, including one per cent in Vancouver and 1.1 per cent in Toronto. International migration is said to be one of the primary factors. A two-bedroom apartment in Toronto carries an average monthly rent of more than $1,400, while in Vancouver it’s nearly $1,650.

The national average declined to 2.4 per cent, with an average rent of $987 ($1,025 for a two-bedroom unit.)

Numbers for the Lethbridge CMA include not only Lethbridge and Lethbridge County but the communities of Coaldale, Coalhurst, Barons, Picture Butte, and Nobleford.