Calgary rents soared last year at the fastest pace in nearly two decades, while the vacancy rate hit lows not seen since 2014, according to Canada Mortgage and Housing Corp.’s (CMHC) annual rental market report.
Those conditions were driven by the province’s major population gains, says the report published Wednesday.
Affordable options are a particularly scarce commodity — the vacancy rate for less expensive rental units in Calgary is below one per cent.
The average Calgary rent for a two-bedroom purpose-built apartment rose 14 per cent to $1,695 while sporting a 1.4 per cent vacancy rate. The city’s condo apartment market is even tighter, posting a one per cent vacancy rate and $1,819 average monthly rent.
Calgary’s vacancy rate is now on par with Toronto, which was 1.5 per cent when the assessment finished in October 2023. The national vacancy rate is also at 1.5 per cent.
“We are moving toward a place where Calgary can soon be comparable to Toronto or Vancouver,” said Anupam Das, professor of economics at Mount Royal University. “Clearly something is happening in Alberta.”
Vancouver’s vacancy rate is 0.8 per cent for two-bedroom apartments.
Low-income renters in Calgary have some of the fewest options, the new data show.
The lowest rent quartile for two-bedroom apartments has a vacancy rate of just 0.9 per cent. This is combined with landlords providing fewer incentives to tenants, such as a free month’s rent or deals on certain amenities, Das said.
He added that all levels of government need to increase rental supply so Alberta’s newcomers can move into livable conditions when they arrive.
Edmonton’s rental market also rapidly constricted in 2023: While its 2.4 per cent vacancy rate is still well above the national average, that number was at 4.3 per cent a year earlier.
And the northern Alberta city could face looming supply challenges, CMHC’s report said. The agency’s housing supply report from last year said housing starts dropped about 30 per cent in the first half of 2023 compared to the same period in 2022.
Edmonton’s vacancy rate is expected to drop further over the next few years, said Taylor Pardy, CMHC economist and senior specialist for Alberta and the Prairies.
Parry said CMHC expects vacancy in Edmonton to hit 1.4 per cent in 2024 and 1.3 per cent the following year.
“If you’re getting above three per cent, then you’re doing pretty well,” Pardy said.
Calgary’s rental market has about 9,000 rental units in the pipeline that should become available in the coming years, he added. But as Alberta’s record migration blew past CMHC’s vacancy projections going into 2023, the new builds have done little to prevent rent hikes.
Calgary’s increasingly expensive housing market mixed with a high-interest-rate environment are also keeping more people in the rental market, Das said.
“For many people, it’s simply not possible to borrow that much money at such a high interest rate, so they went to the rental market,” Das said.
“It’s partly because of the demand-supply mismatch that was caused by interprovincial and international migration here. But at the same time, we did not have enough affordable housing in place in this province.”
Calgary’s vacancy rates aren’t expected to improve in 2024, CMHC’s Pardy said, though potential recessionary conditions would make it harder to predict the rental market’s trajectory.
CMHC is re-evaluating its vacancy projections for Calgary, which it initially predicted would hit 1.4 per cent in 2024 and 1.2 per cent in 2025.
“I don’t think our sentiment has changed in the sense that we continue to think that the market is going to remain fairly tight,” Pardy said.
The next year will likely be “unpredictable,” Das said, but he’s not optimistic the city will see an instantaneous improvement.
“We are kind of on the edge . . . there are hardly any vacant places available. We are in a very tight situation right now.
“I hope that it does not get any worse.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:GOOS)
The Canadian Press. All rights reserved.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
The Canadian Press. All rights reserved.
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:TD)
The Canadian Press. All rights reserved.
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