The average cost of renting an apartment in rural Alberta increased again last year, according to the results of a provincial survey.
A report on the survey’s findings, published last month, found average rental rates increased across all apartment types, with the three-bedroom category seeing the largest increase. The average rental rate for a three-bedroom apartment in the surveyed communities was $1,288 — up six per cent since 2023.
The overall vacancy rate decreased from 5.4 per cent in 2023 to 4.3 per cent last year. According to the report, the overall vacancy rate has been decreasing since 2018, but the survey was not conducted in 2019 or 2020.
Though most types of apartments became a little harder to find last year, the vacancy rate for bachelor apartments rose from 5.4 to 11.2 per cent.
The Alberta government has been running an annual survey of multi-family dwellings in small communities since the 1970s.
The survey covers non-subsidized rental buildings in dozens of municipalities. To be included, communities must have a population of at least 1,000 and less than 10,000, contain 30 or more rental units, and not be included in the Canada Mortgage Housing Corporation’s annual rental survey.
Jasper and Banff are usually included in the survey but excluded from calculations for average rental costs and vacancy rates since they are international tourist destinations. Because of the wildfire last summer, Jasper was not included in the 2024 report.
Kara Westerlund, a councillor in Brazeau County and the president of Rural Municipalities of Alberta, said she was not at all surprised to see rents rise and vacancies decrease.
She said affordability has become a concern for rural Albertans but lower vacancy reflects the positive news of industry thriving and more people moving to small communities.
“You want low vacancy but low rent at the same time but you can’t have your cake and eat it too,” she said.
No vacancy
Vacancy rates increased in 16 communities, remained the same in 17 communities and decreased in 29 communities.
Fox Creek, northwest of Edmonton, saw the most dramatic drop. The town had a vacancy rate of nearly 50 per cent in 2023 but that decreased to 13 per cent last year.
Krystal Hook with Homewise Realty in Vegreville said she has been seeing vacancy rates for apartments decreasing in the town for the last few years.
According to the survey, Vegreville’s vacancy rate shrunk from two per cent in 2023 to 0.6 per cent last year.
“We definitely do have more people coming out from British Columbia, the Toronto area, Ontario, Edmonton, sometimes Calgary,” she said.
Hook said new investors are buying local businesses and bringing workers to town.
Most of the apartment-seekers she talks to need housing right away, she said, but the units she manages tend to be snatched up quickly, often before tenants have moved out.
“I would really recommend most people starting their search a minimum two months prior to moving to Vegreville,” she said.
Communities with highest and lowest rates
According to the survey, Hinton had the highest reported rental rates for bachelor and one-bedroom apartments, with a bachelor apartment costing $1,400 a month and a one-bedroom going for $1,900.
Swan Hills and Rocky Mountain House had the lowest reported rental rates for bachelor and one-bedroom apartments, costing renters $400 and $550, respectively.
Apartments with two bedrooms were most expensive in Drayton Valley ($2,400) and least expensive in Bonnyville ($400).
The priciest three-bedroom apartments were reported in High Prairie ($2,500), while the cheapest were in Beaverlodge ($600).
Canada-wide, according to a report from Rentals.ca and Urbanation, rental prices fell last month on a year-over-year basis to an average of $2,109 — the lowest in 17 months.
