A recent survey revealed that 13 percent of Alberta homeowners own more than one home, which means that nearly 150,000 rental homes in the province are owned by private investors. Rental units that were built strictly for the rental market only account for 112,500, significantly less than second-home investment properties.
Stability Despite Sluggish Building Starts
Homeowners who are hanging onto second properties as investments and putting them on the rental market is a good thing for Alberta residents. What this means is that apartment buildings sold as condominiums in recent years are still for rent. This helps stabilize a market that, without private investor properties, would be tightening to the point of pricing some renters out of the market, thanks to slowing multifamily building starts. In fact, rents have still risen more than 4 percent due to migrant demand, while apartment vacancy rates were below 2 percent and falling in October 2012.
A Growing Alberta Opportunity
Builders aren't exactly disinterested in building new multifamily housing in Alberta, but workers are hard to find. One builder went as far as Romania to bring back skilled carpenters, cement finishers and general laborers. But, as an influx of foreign workers answer the call for skilled labor and oilfield work, they still need places to live. This is where investor-owned properties can fill the bill.
Investors who are looking for a second home or investment opportunity can answer the demand for more housing in Alberta by contacting Vision Investment Properties today. We have a staff that is dedicated to customizing your turnkey property investment portfolio to meet your personal financial goals. Visit VIProperties.com today for more information.