The vacancy rate for seniors’ residences in the Calgary region is on the rise, along with the average cost of a standard space.
Canada Mortgage and Housing Corp. says the vacancy for standard retirement spaces in the Calgary metro area has grown to 6.4 per cent from 4.8 per cent last year. Average rents climbed to $3,564 this year from $3,460 last year, it said.
The rise in the vacancy rate for seniors housing was largely due to more supply added to the market. While the number of residents in seniors’ housing also rose from the previous year, it did not keep pace with the additions to supply.
Several factors, including land and construction costs, are behind rent increases. Many of the facilities in Calgary also offer more amenities compared to some of the other residences in Edmonton and in other areas of the province.
In contrast, vacancy throughout Alberta declined to 8.1 per cent in 2015 from 8.5 per cent in 2014 and the Edmonton area saw its vacancy rate drop to 6.3 per cent from 7.1 per cent last year.
The average rental rate for standard spaces in Edmonton rose to $2,538 from $2,402 while provincially it was up to $2,922 from $2,826.
The report said there were 11,143 retirement spaces in the province, up six per cent in 2014. About 40 per cent of those spaces (4,432) are in Edmonton and 33 per cent (3,645) are in Calgary.