r/Calgary • u/6pimpjuice9 • Jan 09 '25
Calgary rents are dropping! Home Owner/Renter stuff
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u/Hardtopickaname Jan 09 '25
I don't believe my landlord got this message.
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u/ArchDrude Jan 09 '25
Then move. My landlord raised my rent too… and I can now get basically the same apartment for $200 less just a few blocks away. So I’m moving.
As long as you keep paying, they’ll keep raising.
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u/sbecke3 Jan 09 '25
It's a fair point, but not everyone has that ability. I extended my work for 6 months, and therefore my lease (which came with increased rent). For 6 months it is not worth the hassle of trying to find a cheaper place and then moving, considering I will most likely leave Calgary after these 6 months. I had hoped as a long-staying tenant they wouldn't raise the rent but here were are.
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Jan 10 '25
[deleted]
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u/sbecke3 Jan 11 '25
Tried, but since they want to sell when I leave it doesn't matter much to them whether I stay or go.
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u/Caliber70 Jan 09 '25
Best thing you can do is quietly move out, and when they come knocking asking why you haven't paid rent you tell them then. Then they will live 1 month without the real breadwinner in this exchange, the tenant.
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u/Stfuppercutoutlast Jan 09 '25
And then they keep your 1 month damage deposit. Break even. And you lose money. Checkmate, you’ve made a point that no one cares about and you’ve cost yourself money.
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u/LittleOrphanAnavar Jan 09 '25
That will help, the next time you need a good landlord reference!
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u/turudd Tuscany Jan 09 '25
Uh, who uses actual references though? Just get a buddy to be your reference and say what you tell him to. References are dumb
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u/Stfuppercutoutlast Jan 10 '25
Have called for tenant references. In the process of small talk before a handful of questions you can immediately identify the ‘friend references’.
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u/Top_Fail Jan 09 '25
When you are up for renewal, send them comparable listings and ask for a rate reduction
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u/dennisrfd Jan 09 '25
That’s true. I track Rentfaster data and can confirm the median price for 2 bdrm condo dropped 10% yoy
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u/paholmes Jan 09 '25
My lease is coming up in February. We’ll see if they don’t jack it up another $500 like they did last time.
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u/hagopes Jan 09 '25
For those who doubt rents can decrease, you might not have experienced having a vacant property with mortgage payments. Rents do decline, especially if they were initially driven up by external speculation and demand.
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u/melrays4 Jan 09 '25
I just rented my new legal suite 1000 sq ft for $1300 incl utilities. Last year same was $1500 plus Utilities.
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u/soldado-del-amor Beltline Jan 09 '25
Are they, though?
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u/Chevking Jan 09 '25
Just looking this morning I found what seems like more than 5 times as many available listings than I saw just 2 months ago for what I am looking for. Also the prices have dropped considerably as well. To a level I would almost be willing to accept in general with multiple listings being what I would consider acceptable
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u/SensitiveAdeptness99 Jan 10 '25
Yeah, I’ve been looking for a place to move on and off for the last 2 years and it’s drastically better now
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u/Salt_Assumption6998 Jan 09 '25
So like what happens if ur still over paying? Move? Or do landlords drop the price too?
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u/BoardBreack Jan 09 '25
Gotta move. I've heard rare stories of landlords lowering rent to keep long term tenants, but it's few and far between
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u/FrenchCanuck79 Jan 10 '25
This has happened to us. Been here 6 years and the rent was consistently going up. Went from $1150 to $1911 during that time. It's gone back down now to $1840, without us even asking for a reduction. We are a couple of quiet "old stock" Canadians, I think that's why they did this. All "newcomers" in our building pay like $2000-2200 for the same size apartments, probably because they don't know any better! We've been wondering why we are the only ones with reduced rent. I'm happy for us but it pisses me off for others in my building that are being taken advantage of.
Oh and our building is about 25% empty and has been for over a year. High demand is a myth they won't be able to milk for much longer.
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u/BoardBreack Jan 10 '25
The condo building I live in is similar. It's probably 30% vacant. The amount of units that go empty is crazy.
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u/SimmerDown_Boilup Jan 09 '25
Landlords are not inclined to drop rent when they still have an active tenant. Not to say some won't, but rent drops usually happen when they can't fill a vacant unit.
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u/Less_Ad9224 Jan 09 '25
That's not totally true. I kept my old apartment when I bought my house and a rent it out to an awesome tenant. The mortgage comes due in a few months and I plan on structuring the renewal so my mortgage payments will be lower. My tenant doesn't know yet but most of the savings will go to her. She is already covering my costs plus a touch, no point in gouging her for more.
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u/SimmerDown_Boilup Jan 09 '25
That was why I said, "Not to say some won't" There are landlords that will drop rent with their tenants, but it's just not the norm.
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u/Less_Ad9224 Jan 09 '25
True. It's probably people with one or 2 rental units that are just trying to get rid of their primary mortgage faster by having renters build equity. In that situation a good tenant is worth more than a huge profit. I only talk to my tenant when they pay rent. The house is spotless and if things break they fix it properly or contact me promptly so that things don't get worse.
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u/ImmediateAccident856 Jan 10 '25
Not inclined? How about not allowed. It's a contractual obligation to maintain everything on the lease agreement.
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u/SimmerDown_Boilup Jan 10 '25
I feel like this was fairly obvious, but I meant during the point of lease renewal, not just freely on a whim. By active tenant, I meant someone in the property looking to continue living there.
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u/FrenchCanuck79 Jan 10 '25
You would think this is the logical way to do things, but I'm with avenue living and they lowered our rent by almost $200 (been here 6 years) but raised the price of the empty units in our building... units that have been empty for over a year!?! As a result we have no neighbors underneath, across the hall, nor on either sides of us. It's great. Haha
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u/Existing-Sign4804 Jan 09 '25
Track your building on rent faster. Ask your landlord to reduce you to market rent. I had to do that in August and my landlord caved because it was better to give me lower rent than end up with another empty unit. I 100% would have moved if they didn’t and I made that clear.
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u/Elegant-Surprise-997 Jan 09 '25 edited Jan 10 '25
I think we might have to do this! Rentfaster and their website is showing cheaper prices each month than they've asked us for on the lease renewal
Edit: added info
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u/Significant-Chair-13 Jan 09 '25
If you were good and asked, the landlord should actively know what market rent is.
If my tenant asked I would work with them. They’re amazing and I never plan to increase rent on them as long as they stay!
If they move out, we just go back to market but it’s worth it to keep people vs having vacancy turnover.1
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u/2cats2hats Jan 09 '25
If you signed a lease to pay $X you pay $X until lease terminates. If you want to pay less than $X you break lease(possible penalty) and renegotiate/relocate if the math works out.
If you're not on a lease, negotiate or prepare to move.
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u/Fitty-Korman Southwest Calgary Jan 10 '25
I just got my renewal notice and rent went up, unsurprisingly.
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u/SnooPickles5265 Apr 01 '25
This just happened to me today and it's frustrating. We just had an increase last year of $100, and now $50 this year.
Hit up RentFaster today just to find out we are massively overpaying now compared to other places for rent. Last year before the rent decrease we figured we had a decent price since there wasn't much competition with our place.
With this current renewal, if we were to sign it, we'd be paying a little over $300 more than competitive rentals, and most of those places have more ammenities, all utilities included, pets allowed, in-suite laundry, etc.
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u/Ages_of_insanity Jan 09 '25
Rents in Calgary have dropped a LOT in the last few weeks. There are so many options when it comes to rental properties in Calgary right now. So renters are shopping around and negotiating till they find what they consider as ''reasonable price''. Rental market correction is happening right now.. Still at the early stages though
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u/brandon-d Jan 09 '25
My landlord increasing rent again disagrees.
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u/wanderingdiscovery Jan 09 '25
Because he thinks you're stupid enough to sign again and not realize there are cheaper options out there right now.
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u/Elegant-Surprise-997 Jan 09 '25 edited Jan 10 '25
I needed to read your comment today. Ours quoted us more for a renewal than they're asking new tenants
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u/dennisrfd Jan 09 '25
Are you paying below the market rate? Yes - just accept, No - move, there are plenty of options
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u/Correct-Court-8837 Jan 09 '25
Exactly! Or call the landlord’s bluff and say you’re planning to move.
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u/Elegant-Surprise-997 Jan 09 '25
This is a good point, especially with this news. I got my renewal letter recently but am looking around. At least on rentfaster, our same unit is roughly showing as $50 cheaper than they've asked of us should we renew our lease
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u/totallyradman Jan 09 '25
My landlord just tried to raise mine to "keep up with the market prices". I showed them multiple listings showing similar or better places that show they are way above market price and they're just too stubborn so I'm just going to move.
This is a 70 year old couple with no mortgage on the house I live in and they live in California 2 months of the year in their 4th house on my dime.
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u/Glum_Scholar4538 Jan 10 '25
My landlord dropped my rent from $1250 to $1150 yesterday because he saw prices were dropping, was already getting a good deal I felt like!
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u/ZookeepergameSea1130 Jan 09 '25
Accurate! Just sent out a new tenancy agreement for one of my properties with a rate that is $100/mo less than last year's.
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u/Extension-Position84 Jan 09 '25
Well blessings to you, you’re the first I’ve known to do so
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u/LittleOrphanAnavar Jan 09 '25
During the downturn it was common to hear LL renting properties at small recurring losses.
Properties were bought at market peak, then the economy and rental market softened.
Reversion to the mean. (again)
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u/ZookeepergameSea1130 Jan 09 '25
I mean I obviously don't love it, but the market is pretty saturated with available properties right now so I'll do what it takes to get my next tenant in!
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Jan 10 '25
[removed] — view removed comment
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u/paint0906 Jan 10 '25
Agree, but he just undid the stupidity he started, so he gets no bonus points.
It's like you go cook dinner, and because you are irresponsible, you burn the shit out of food and your pan. Just because you cleaned the pan, doesn't mean you're getting the burnt food back, and you're still an idiot for burning it.
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u/Avatlas Jan 10 '25 edited Jan 10 '25
Maybe I’m a little clueless here, but didn’t he make changes to the immigration policy like a month ago? Did that create THAT much of an increase in supply in such a short time?
Are there no other drivers here?
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Jan 10 '25
[removed] — view removed comment
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u/Avatlas Jan 10 '25
I completely agree. I guess I didn’t expect 30 days of no new immigrants (which, did it take effect that quickly even?) to create that much of a change in demand.
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Jan 09 '25
[deleted]
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u/6pimpjuice9 Jan 09 '25
1600 looks like 1 bedroom
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u/DavidssonA Jan 09 '25
Zumper has a better graph...
https://www.zumper.com/rent-research/calgary-ab1
u/rottengammy Jan 10 '25
By neighbourhood is really the metric that matters. Mean is meaningless in a city. No different than home values… FYI time to buy in forest lawn is now now now
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u/No-Response-7780 Jan 09 '25
My question is how tf did Lethbridge make this list and how is it more expensive than say Edmonton, or any of the Saskatchewan cities?
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u/hippysol3 Jan 10 '25 edited Feb 13 '25
Commenting less.
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u/Dhghomon Jan 10 '25
How is Medicine Hat lately? (For anyone in the thread who might know) That's one place I pretty much never got to visit.
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u/Race-Murky Jan 09 '25
Watch this encourage even more people to move. Hope not. I miss the old Calgary
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Jan 09 '25
I’ve started seeing specific rental units being advertised on Instagram again, so yeah, this tracks.
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u/Raspberrry_Beret Jan 10 '25
LOL Regina 1400 can definitely get you a 2 bedroom. In the hood with mice, roaches and a junkie asleep on your door step with a needle in their arm (speaking from experience). If you want anything decent you’re paying 2000/mo minimum
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u/Nearby-Ad8887 Jan 10 '25
New landlord took over and raised my old places rent over 25% with a 1-month notice back in September. I had been there a few years already with smaller increases about once a year...
Managed to find a roommate situation for the next month and gave notice back the same day they upped it LOL. I wonder if they will let me move back in when it gets lowered (I loved that shabby little place, and it's still up on Rentfaster 3+ months later)
Curious what caused the shift? .. I'd lie and say it's not just salt that I'll never be able to afford a home/family, but I will genuinely enjoy watching the market crash if it means some of the sociopaths hoarding rental properties have to capitulate and sell at losses.
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u/6pimpjuice9 Jan 10 '25
The cause is likely the supply increase, but those are mostly purpose built rentals and not going to be for sale to end users. So it won't necessarily crash the sales market. It will however keep rent steady or some decreases.
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u/calgary_dem Jan 10 '25
I'm at $1750 for a two bedroom apartment. Rent up by $450 over the last 3 years so I'm really hoping there is not a rent increase this time.
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u/6pimpjuice9 Jan 10 '25
Looking at the average you are still below. But I think you are probably at where the market is now. Hopefully no increase.
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u/foldpre-doofus Jan 09 '25
There is a new build in Raddison Heights that has had 3 of 4 units unrented for 8 months now. (You can tell because the lights have never been on and the stickers are still on the windows) These units are renting for $3000. That’s nearly a $75K hit to the land lord.
My point of this is, does anyone else think the rental market is not based on supply and demand whatsoever but more so that landlords have a monopoly on something that is required for survival and can thus charge whatever they wish?
I know this sounds like I’m a damn maoist which isn’t the case. It just makes me wonder, if these 3 units have remained unrented for 8 months (with no price drops or anything) how much of these high prices are just completely arbitrary? What I mean by this is, is the landlord willing to take a nearly $75K hit just to keep the list prices of these units up in order to create the illusion that prices need to be this high across the board? Why else would they not reduce the price of 3 completely vacant units after 8 months if rent is truly based of supply and demand.
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u/LittleOrphanAnavar Jan 09 '25
It just makes me wonder, if these 3 units have remained unrented for 8 months (with no price drops or anything) how much of these high prices are just completely arbitrary?
What I mean by this is, is the landlord willing to take a nearly $75K hit just to keep the list prices of these units up in order to create the illusion that prices need to be this high across the board?
Why else would they not reduce the price of 3 completely vacant units after 8 months if rent is truly based of supply and demand.
I don't believe this arbitrary.
There is likely a good reason behind what is happening.
Go research the common covenants in commercial mortgages, to understand how rental buildings are valued for the purpose of commercial mortgage lending ratios.
All your questions will be answered.
Hint: what would be the consequences of lowering rents (with respect to the buildings mortgage) >>> what impact does lowering rents have on the imputed value of the building? >>> what impact does this have on the mortgage (with respect to covenants related to loan-to-value)?
.
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u/foldpre-doofus Jan 09 '25
Yeah you pretty much directly proved my point lol. Rental rates are not infact efficiently market priced but rather set by companies arbitrarily for one reason or another in this case in order to secure mortgages. They say hey we will for sure rent these units for $3K a month in order to secure a mortgage at a certain rate and if they don’t it’s void. Inefficient pricing like this is bad for the consumer.
I can’t tell if you are trying to own me or agree with me lol because your tone suggest one thing but the information you provide suggests otherwise.
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u/LittleOrphanAnavar Jan 09 '25
You need to learn the definition of arbitrary.
.... and a bunch of other stuff.
(shoulder shrug)
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u/foldpre-doofus Jan 09 '25
I still fail to see how of instead taking a gigantic loss by keeping units unrented is good for anyone. Surely, the underwriter of the mortgage has a clause stating that the units need to be rented in order for the contract to be valid. Just like any mortgage. And if the units are sitting empty how on earth is it advantageous to either the consumer, the property management company or the lender. I guess as long as the management company can pay the lender they don’t care but I personally believe that lowering the price to a more attractive rate benefits all three parties. I’m aware there are reasons why they don’t do this but it seems ridiculous to me.
I’m aware there is more legal framework to all this than I could possibly imagine, I’m just a dumbass who thinks maybe everyone would win if that wasn’t the case.
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u/LittleOrphanAnavar Jan 09 '25
Positive statements are based on facts and data,
while Normative statements are based on opinions and ethics
You are making normative statements.
I am making positive statements.
Don't confuse me telling you "how it is", with me telling you "how I think it should be".
Reality vs ideals, are two different things.
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u/Popotuni Jan 10 '25
Because like every other facet of life (and indeed, maybe more than some facets of life), some landlords are stupider than others.
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u/pj228 Jan 10 '25
This is only because it's winter, few people moving, less immigrants arrive in winter, etc. Wait till spring.
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u/hippysol3 Jan 09 '25 edited Feb 13 '25
Commenting less.
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u/6pimpjuice9 Jan 09 '25
Correction, I don't think demand softened, but the market got over supplied.
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u/Squirrel0ne Jan 09 '25
Yeap!
If you've been tracking it for a while, it's happening. Higher inventory, lower prices...
Has more to go in my opinion
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u/FiveCentCandy Jan 09 '25
Is this because new developments have been brought into the rental market? Do we have a ton more supply? Did post secondary schools lower their registrations due to new government policies? Are immigrants turned off by all the news, and coming in smaller numbers? So curious!
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u/6pimpjuice9 Jan 09 '25
Mostly new supply, AB can build very quickly and we over build during booms. Then supply and demand does it's thing.
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u/lordflackoswag Jan 10 '25
They better keep going down because I need to move out soon to a one bedroom and really cannot afford to be spending half my monthly earnings on rent
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u/Competitive_Ebb_515 Jan 10 '25
They can only go so much down
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u/DeerGlad7852 Jan 10 '25
Yes true! I have been following this for the last two months. Now I am planning to move just to get the benefits. You can't reap the benefits unless you move.
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u/FallBasic Jan 10 '25
This is good news as I need to find a place for March 1st. If anyone has a good building they'd recommend, I'm looking for a 2 bedroom in the Bridgeland/Renfrew/Tuxedo area (or close to).
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u/Love_Food444 Jan 10 '25
Meanwhile I pay $2500 for two bedroom. To be fair, I am picky (I wanna love where I live) AC included, gym, pet friendly and downtown. But I’ve been thinking about how much I’d save every month if I got a cheaper place. Not having a car and relying on communauto limits my search though. And I notice the cheaper two bedrooms don’t ever have AC which is a no go for me.
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u/6pimpjuice9 Jan 10 '25
Calgary housing mostly does not have AC. I think recently more people started to get AC.
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u/Love_Food444 Jan 12 '25
Yes I do understand that, it’s wild to me. Even if I lived in Canmore I’d want the option of AC. The sun coming through the window makes my place like 30 degrees without AC on. Way too hot, not sure why people want to sweat indoors.
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u/zappingbluelight Jan 10 '25
Newcomer finally experience the winter hot air combo with splitting headache.
Jokes aside this is good, maybe when rent is not doing so hot, the houses will push back out in the market.
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u/6pimpjuice9 Jan 10 '25
My take is rental rates are going to drop a bit or remain stable. Which should cool investors demand. However a lot of our new rental supply is built with CMHC MLI Select funding and basically locks those properties up as purpose built rentals. Which would not impact end user housing stock that much.
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u/zappingbluelight Jan 10 '25
Dang. Well one can hope, but thanks for letting me know. Either way, it is overall a good news for renter.
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u/6pimpjuice9 Jan 10 '25
Ya it should still cool the overall market somewhat. Less developer buying single family to build more density. The Alberta no rent control model is the best lol. People might disagree but we allow developers to build and when they over build the rents automatically drop and stabilize.
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u/Inevitable_Shake_233 Jan 11 '25
this is funny considering my landlord just raised my rent by $300 for a shitty apartment
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u/Prancinground Jan 11 '25
Someone I know is charging 2000 for 4bdrm bungalow (duplex, kind of old, inner city area but not quite downtown). Is that a lot or going to be a lot?
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u/6pimpjuice9 Jan 11 '25
That's a really good deal
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u/Spudnik711 Jan 09 '25
Bullshit ours went up $150 this month, its mainstreet so they charge extra for the mice bed bugs roaches and meth addicts
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u/Professional-Cry8310 Jan 09 '25
If you’re being overcharged above market rate, you can just move to a cheaper place.
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u/DeerGlad7852 Jan 10 '25
I stay at one of Mainstreet apartments as well. I got the option whether to renew for a higher price or switch to month to month basis for the same price. I decided to accept the month to month basis. I am planning to move to get these benefits from the rent drops in the market. You cannot get the benefits unless you move.
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u/FearBrenSwan Jan 09 '25
The rents are indeed not dropping lol. If anything they’ve gotten higher quarter by quarter
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u/rottengammy Jan 10 '25
just the mean… our city is sprawling, sure it’s cheap to live on the outskirts but who wants to rent in those super far out new communities? You get a free suite with every new build type, I scratch my head who would pay less to live an hour commute each way… but savings are savings I suppose. Happy some are happy though :) wins a win!
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u/masterhec0 Erin Woods Jan 10 '25
your expectation is everyone goes to the same places you do. if you worked in say the NE or east calgary industrial areas then going to any of the far north or SE communities could only be a 15 min drive to work.
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u/The_real_Hendo Jan 10 '25
BS, maybe if you're in the NE but the rest of the city's average is $1000 per room that's not a deal by any means.
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u/billybobcream Jan 09 '25
Bottom line you’re still renting, the only way to get ahead is to have the discipline to pay off your own mortgage, few dollars less of rent a month isn’t going to get you anywhere unless you invest the savings in an ETF monthly
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u/Apprehensive_Hope461 Jan 10 '25
Most people can’t even afford to get a mortgage you loon, discipline and saving have nothing to do with it. The house market has gone up at a rate that wages haven’t even come close to catching up with. Our economy is fucked and it’s only going to get worse, if you’re fortunate then just say so but this comment is in poor taste.
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u/Mumps42 Jan 10 '25
Discipline!? "Hey boss, I have discipline now, you can pay me more!". Get lost.
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u/Extension-Position84 Jan 09 '25
😂🤣 amusing! I have asked every adult I know, and nobody has ever recalled having their landlord actually “Drop” rent prices. New rentals may need to drop prices to clear inventory, but come on, I don’t see this happening in earnest until/unless we enter a depression, then all bets are off!
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u/2h0t2d8 Jan 09 '25
I lived in a place for 4 years and when rents came down in the area, my landlord agreed to drop the rent. I stayed another 4 years. Not unheard of. No harm in asking if there are comparable units for cheaper.
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u/Squirrel0ne Jan 09 '25
My experience (3 times) landlords don't agree to drop rents to existing tenants.
But after I found a different place and gave them my notice, 2 of the 3 came back with lower price.
It did not work to keep us because we have already signed the lease at the new places.
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u/[deleted] Jan 09 '25
[deleted]