Calgary's rent prices remained at average in 2003, while other Canadian metropolitan areas increased.

A report released from Canada Mortgage and Housing Corporation (CMHC) reported that the average rental vacancy rate rose from 1.7% in 2002 to 2.2% in 2003. Factors to the increase in vacancy rates have been attributed to low mortgage rates, construction of new rental units, as well as consumer confidence in buying their own homes.

Due to the low rental vacancy rates, strong resale housing market, rising prices, and a shortage of listings of lower and moderately priced homes available for resale, this created the push to the housing starts in 2003 to their highest levels in years.

Presently, tenants have more choice in both the commercial and residential rental marketplaces, and therefore landlords are more reluctant to raise rental rates as seen in 2001 and 2002. Most landlords are more hesitant to boost rents, while others may cut their rates or provide other incentives to increase their clientele.

Vacancy rates went up in metropolitan areas in the Prairies and in British Columbia, except for Victoria, which fell from 1.5% to 1.1%. Quebec cities remain at the lowest vacancy rate for the second year in a row. New Brunswick had the highest vacancy rate in the country.

According to the Rental Market Survey released by the CMHC, the highest average monthly rent for two-bedroom apartments were in Toronto with a $1,040 rate. Vancouver was next with $965 monthly rent, and Ottawa charged an average of $932 per month.

Megan Pratt is the Communications Assistant for the Calgary Real Estate Board. Statistics and information compiled from CREA and CMHC.