Edmonton is known as one of Canada’s fastest growing cities. The population in the city between 2011 and 2016, has grown between 14.8%. In turn, this has had a positive impact on the real estate market in the city.
A look at the current situation of the Edmonton real estate market and its forecast in 2018 gives some idea to what is shaping up for other industries too. We would especially draw attention to the areas of the housing market, rental industry and infill housing construction.
The housing market, according to the Alberta Government shows a stable demand for single-unit dwellings. The prices for housing, as is the case with every other city in Canada, are growing steadily. This helps existing property owners as they experience an increase in the value of their property. However, Edmonton and Alberta on the whole are in a better position since their tax laws are far more conducive to free enterprise and competitive pricing.
The housing market has seen an increase in demand due to the city’s population expansion. This has also resulted in a boost for the suburban housing market.
That’s not to say the housing market is not facing challenges. While the number of homes constructed in Edmonton has increased, the number of homes sold has been lower. For example, the number of homes constructed in 2016 was 2,156, while the number of homes sold was 1,263.
Major construction projects in Edmonton of both commercial and residential, have infused the industry. Some very large real estate contractors like Bird Construction, PCL Construction and Ledcor Group have made investments in Edmonton and Alberta area.
Here’s a look at the real estate projects in the Edmonton area.
Many of these projects range from residential and commercial to industrial and tourism.
Even after the recent dip in Alberta’s economy due to the oil industry, residential construction projects are still going strong. A report from the Canada Mortgage and Housing Corp predicts that the construction of single family homes in Edmonton will continue to rise. With property purchases on the rise, Edmonton home builders like Davery Homes have been busy with new construction and infill projects.
The rental industry is directly tied to the real estate sector. The supply of rental apartments has increased while a high tenant turnover rate of 34% indicates that tenants have greater mobility in the Edmonton area.
The rental market for condominiums faces the toughest challenge in the rental industry. According to the Canada Mortgage and Housing Corp, there has been a 27.4% increase in the supply of rental condominiums, while the vacancy rates remain stable.
Despite these challenges, the rental sector has been on the rise.
Additionally, multi-family home rentals continues to hold strong.
With trouble brewing in the oil industry, this kind of shock in the rental industry was expected. Downtown Edmonton had seen a high vacancy rate, especially with commercial property.
2018 will see the market stabilize and gradually increase. Furthermore, Alberta’s oil recession can impact the Edmonton’s rental sector in a positive way. Job seekers will gather in Edmonton and this will see a rise in residential and commercial rental units and a dip in vacancy rates.
With these conditions a business like Rental Advisor has been in demand. they offer end to end rental solutions to property owners and investors, and is also an online real estate platform for tenants. Their website has search features for those looking for rental housing anywhere in the city.
Local Edmonton Support
The City of Edmonton has encourage infill construction to revitalize some older neighborhoods with houses that have seen better days or simply don’t suit the changes in the neighborhood. Infill construction is the remodeling of the urban space such as reworking already constructed homes or building new homes on lots where older homes have been removed.
There is a great utility for the development of these neighborhoods as the population of Edmonton currently stands at roughly 835,000, but it is expected to touch 1,400,000. Urban centers offer greater scope for financial development, which is why there is a worldwide trend of people preferring to settle in urban regions. Growing cities make traveling time a problem among people that reside in suburban areas, as they are farther away from the core areas of the cities that offer these opportunities in the first place. There has been a recorded population loss of 73,000 inside the period of 40 years itself when we are exclusively considering mature neighborhoods. With a projected rise in population to the tune of 170,000 by the time 2025 comes to an end, the city-planners see a problem, and this endorsement of infill construction across the city is a proactive measure.
With this in mind, the City of Edmonton has encouraged infill construction and set up infill construction regulations.
Edmonton home building companies such as Davery Homes, have already introduced a special section of their operation, devoted exclusively to infill construction, but they also provide full custom home options on new lots and developments.
With new construction properties being completed every month through-out the city, companies like Goodfellas Property Maintenance are also in much demand to maintain the properties throughout the year. Their services manage to mature landscapes and improve curb appeal, all of which improves the city and helps to make it an ever pleasing place for new people to move to.
The Edmonton real estate market has always been resilient whether it was the 2008 recession, or the occasional oil industry decline. Local businesses, as mentioned here in home construction, rentals and landscaping, are thriving. Overall, the Edmonton real estate market has a strong backbone and the prospects in 2018 look promising.