Edmonton rent prices are rising. Recently, Edmonton rent prices saw the second highest increases month-over-month in Canada.
The May 2023 rental report from Zumper found that the demand for rental properties in Canada continues to exceed the supply in most major cities. With a national rental vacancy rate of less than 2%, renters are finding it increasingly difficult to find affordable rental properties across the country.
While Edmonton may still offer more affordable rent compared to most major Canadian cities, given the trend of rising rent prices in Edmonton and with more people moving into the province seeking relative affordability, it may be time to reconsider your options as a renter.
Median 1 Bedroom Rent Prices in Edmonton
While Edmonton is ranked 22nd relative to the country's most expensive cities – namely Vancouver and Toronto which claimed first and second ranking respectively – it did inch up a spot in May with a whopping 5.80% increase M/M. The only other city that rose quicker than Edmonton was Calgary at 6.10%.
A one bedroom rental in Edmonton fetches a median monthly rent price of $1,090, which is a 16.00% increase Y/Y.
Median 2 Bedroom Rent Prices in Edmonton
Rent prices for a two bedroom in Edmonton go for about $1,380 per month, which is a 6.20% increase M/M and a 15.00% increase Y/Y.
Is it cheaper to buy than rent?
With higher interest rates, most folks might assume that home ownership is not in the cards right now. However, with rent prices also on the rise and fierce competition for available rentals, it might be worth a second look.
Of course, there’s still the matter of coming up with a downpayment, a minimum of 5%, that needs to be factored in as well. Fortunately there are quite a few programs for first time home owners, including the First Home Savings Account, which may help out in that regard.
Buying a condo may actually be a more affordable option than renting. Let’s do the math.
You can find plenty of two-bedroom condos in Edmonton for $200,000 or less. With 5% down and a 5-yr fixed mortgage rate of 4.84%, the monthly mortgage payment for a $200,000 condo is $1,131. Compared to an average $1,380 in rent, it’s 22% cheaper to buy than it is to rent.
Search condos for sale under $200,000
Don’t forget about condo fees though! Some condo fees may include your heat, water, waste removal, internet, as well as exterior maintenance. In addition, many condo buildings have additional amenities such as fitness facilities, work spaces, and indoor/outdoor entertaining spaces for your personal use.
Also keep in mind most rental properties charge extra for parking, whereas a condo typically includes dedicated parking for your unit.
At the end of the day, it’s hard to put a price on the peace of mind you get from knowing you’re not at the mercy of a landlord who will likely increase your rent each year. And real estate still remains one of the least volatile investments you can have with generally good ROI.
Ready to stop renting? With 20 years of real estate experience in Edmonton, Wally has helped countless first time home owners make the jump to home ownership.
Call/text Wally at 780.238.7384 to get started.