The State of Edmonton Rental Market (Q2) 2023

Compared to other large Canadian housing markets, Edmonton offers affordable housing options. However, driven by population growth, rental rates in Edmonton have been increasing, and this trend is expected to continue in the second quarter of 2023. Across all types of properties, the vacancy rate has decreased from last year.

Rental rates for single-family detached homes, townhomes, and duplexes have seen a steady increase, with a 3-bedroom and 2.5-bath townhome and half-duplex renting on average for $1500-$2200, depending on the condition and location of the property. Although rental rates for apartment-style units have increased slightly, new developments and properties being released into the market have prevented a significant increase in rental rates. However, basement units continue to be a challenge to rent, especially in older communities due to their age, condition, and lack of proper heating. These units should be upgraded to meet current market needs before they can be rented for a higher price. In contrast, basement units being built in newer markets in the southwest and west of Edmonton are receiving good reception and renting well, provided they offer good parking options.

It's important to note that Edmonton is a city where private vehicles are heavily relied on, especially in newer neighborhoods where public transit services are limited.

Seasonal Market

It's important to note that our rental market is seasonal, with spring and summer having a significant impact on rental velocity. This year, we are seeing a trend where more tenants are renewing their leases rather than moving out. This indicates that there are fewer rental property options available in the city, resulting in higher or similar rental rates to what tenants are currently paying. Furthermore, properties are renting out faster, with an average rental time on the market of 18 days. However, we have observed that properties with higher rental rates tend to take longer to rent out, and we may need to reduce the rental rates to reduce the rental days on the market.

Predictions for the Remainder of 2023

Buckle up, folks! It's an election year in Alberta, and the race is on! On May 29th, the province will cast their vote in what is expected to be a nail-biting showdown between the UCP and NDP. It's anyone's game at this point, and the stakes are high.

Both parties have vastly different policies and approaches that could send shockwaves through Alberta's economy, society, and environment. The UCP has a pro-business agenda in mind, with a focus on cutting taxes, reducing regulations, and promoting resource development. Meanwhile, the NDP has taken a more progressive approach, emphasizing social programs, environmental protection, and economic diversification.

Depending on which party wins the election, we can expect to see significant policy changes and shifts in priorities in areas such as healthcare, education, energy, the environment, and social programs. The election outcome may also impact the relationship between Alberta and the federal government, as both parties have different views on contentious issues such as climate change, pipelines, and equalization payments.

All these changes could have a ripple effect on Alberta's economy and population growth, which could impact the housing policy in the city. So, let's stay tuned and keep a close eye on the election results – the future of Alberta is in the hands of the voters!

What is Davies Property Management doing to get your property rented?

At Davies Property Management, we take pride in our rental marketing program and the results it produces. Here are just a few of the highlights:

• Premium Zumper & PadMapper Listings: We understand that in today's rental market, online visibility is key. That's why we invest a significant amount of money each month to ensure our listings get premium placement on Zumper and PadMapper. As the number one tool used by rental prospects to find their next home, we want to ensure our listings are front and center.

• 24/7 Leasing Line: We know that rental prospects have busy schedules and may be interested in leasing a property at any time of day or night. That's why we've implemented a 24/7 leasing line that is staffed by knowledgeable professionals who can answer questions and pre-qualify prospects no matter when they call.

• Weekly Property Reviews: We understand that the rental market can be volatile, and pricing can fluctuate rapidly. That's why our leasing team reviews every property we have listed on a weekly basis. We analyze market trends and evaluate what's happening with other rentals in your neighborhood to provide you with the most up-to-date information possible. Whether it's time to reduce the price or stay put, we'll review each property and adjust accordingly.

At Davies Property Management, we're committed to getting your rental property rented quickly and efficiently. With our cutting-edge rental marketing program, you can trust that your property is in good hands.

What can you do to help get your property rented?

Let's cut to the chase: you partnered with us because we're experts in renting out homes. We understand that it can be tough to hear advice that you might not want to hear but trust us when we say that we know what we're doing.

There are two main factors that determine whether a home will rent quickly: price and condition. We can control both of those factors, but we need your cooperation to make it happen. If we suggest that the home needs a fresh coat of paint, please let us take care of it. Subpar product attracts subpar tenants. It needs to be in top condition to attract the best tenants.

Similarly, if we adjust the price downward, it is because there is lack of interest or poor feedback from prospective tenants. It's better to reduce the rent by $50 per month than to have your property sit vacant for another month.

At the end of the day, we're all on the same team, working towards the same goal: getting your home rented out as quickly as possible, for a fair price. So let's work together and trust the experts to make it happen.