Let’s talk about the Canmore rental market – particularly data and demographics for Canmore & Banff real estate investors.
I often hear from clients and investors who are seeking Canmore real estate market data before making decisions considering a Canmore investment property. This is particularly true when it comes to buying Canmore rental properties. Note, this article looks at long-term or 30 days plus rentals. Read my article here for information on short-term rentals in Canmore.
Today, we’ll dig deeper into some Canmore demographics and Canmore rental market data.
Banff and Canmore are known worldwide as being home to an active, outgoing population. Canmore is consistently rated as one of the best places to live in Alberta and in Canada. But what kind of hard data do we have on the people who live in the Bow Valley?
Household incomes in Canmore and Banff are strong thanks to a resilient local economy based in tourism and several other industries. 46% of Bow Valley residents enjoy an annual household income of greater than $100,000, and the median annual income was $91,949 in 2016. Canmore enjoys a stronger overall household income picture as only 26% of households have incomes lower than $60,000, compared to 32% for Banff. Canmore homeowner incomes are 30% higher than renters, and owner incomes are 24% higher than renters in Banff.
Comparison median household incomes in Canada are:
The incredible lifestyle and scenic beauty in the Bow Valley has caused a massive influx of new, temporary, and vacation home residents. Nearly all of them start in the Canmore rental market or never choose to purchase a Canmore home themselves. As such, Canmore housing stock has begun to shift to multi-family properties and apartment-style condominiums. These units are in demand in the Canmore rental market.
Before the 2008-09 Financial Crisis, housing starts in Row and Apartment style homes were booming before the market crash. After the 2015-16 oil collapse, in 2017 this has begun to ramp up again as demand has grown and continued to increase.
The growth in demand for multi-family and apartment-style condominiums in the Canmore rental market reflects an increased interest in Canmore investment rental units, Canmore vacation homes, and more affordable options for Bow Valley residents hoping to own their home here.
Canmore and Banff rents have increased across all segments steadily since 2007, and even more still since the 2017 numbers above. This reflects increased demand in the Bow Valley rental market.
Bow Valley rental vacancy rates have generally hovered from 0%-1% in the past decade. The town of Banff added 173 units of much-needed affordable rental stock, bumping the vacancy rate up to 1.1% in 2018. Hopes are to achieve a 5-6% rental vacancy rate to be able to keep up with demand, but this could be many years out and will require a significant amount of housing starts to approach as demand is expected to continue to rise as well.
Canmore & Banff, like other mountain towns in North America, experience a massive draw of residents and visitors thanks to high quality of life, scenic beauty, and booming economies. This extreme demand combined with a finite land resource ensures that property stock will seemingly always remain scarce.
Important to note is that the rental pool in the Bow Valley is 37% compared to 27% in Alberta as a whole. 53% of households in Banff and 31% in Canmore have renter tenures, indicating a strong base of consumers looking for rentals. This also reflects the service-based and recreational economy.
If you’re looking to diversify your portfolio or branch into the mountain rental market, Canmore could be a great choice when it comes to securing tenants and rent security. If you’re considering a vacation home or a future retirement residence, buying and renting it now to use it personally later may be a great option to finance towards your goals.
Feel free to reach out to me for insights and information on current properties in the market that could make great long-term rental properties in Canmore & Banff.
Note: The information in this article is purely for information purposes. It is not intended to advise on any specific investment decision. Call me today for further information on investing in the Canmore rental market.
Like this post? Check out some of my other articles to learn more: