By Sheldon Spackman

HOUSING MARKET

Red Deer rental rates among lowest of Alberta cities

Apr 23, 2019 | 9:02 AM

A new report indicates Red Deer has one of the lowest average monthly rents in the province.

The April national rent report produced by Rentals.ca and Bullpen Research & Consulting shows the average monthly rent for a one-bedroom unit in Red Deer is currently $1,009, down 1.1 per cent from the previous month.

While the average monthly rent for a two-bedroom in Red Deer came in at $1,180, up 3.6 per cent from the month before.

By comparison, Fort McMurray had the highest average monthly rent for a one-bedroom residence in the province at $1,305, while other communities measured also had higher rents than Red Deer, including Calgary, Edmonton and Grande Prairie.

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Of the six Alberta cities included in the report, only Lethbridge saw lower rental rates than Red Deer, with the average monthly rent in that city being $863 per month for a one-bedroom unit.

According to the report’s authors, the average monthly asking rent in Canada declined slightly in March after three straight months of increasing rental rates.

The average property on Rentals.ca was offered for $1,864 per month in March vs. $1,888 per month in February, a decrease of 1.3 per cent month over month. The median asking rent in March of $1,750 per month is 2.7 per cent lower than February’s $1,800.

The report also notes a factor that could reduce rental demand is the new First-Time Home Buyers Incentive that was recently announced as part of the national budget. The interest-free, down payment assistance program is expected to help many tenants get into the home-ownership market.

According to the Canada Mortgage and Housing Corporation, “by helping first-time home buyers purchase homes, we will free up rental supply, easing pressure on rents. This, along with the expanded Rental Construction Financing program, will add to the supply of affordable rental housing.”

In addition, the report concludes mixed economic signals suggest there likely won’t be any interest rate hikes in 2019 but a higher chance of a rate reduction, as the potential for a recession looms larger.

Other takeaways from the April rent report include Toronto still having the most expensive average monthly rent for a one-bedroom home at $2,254, while Vancouver has the highest rent for an average monthly rent for a two-bedroom at $2,966.

The National Rent Report charts and analyzes national, provincial and municipal monthly rental rates and market trends across all listings on Rentals.ca for Canada.

(With files from Rentals.ca and Bullpen Research & Consulting)