Rents and the economy

[YehoramShenhar]

Hi,

Here is an article from the New York Times about the rental market in NY: http://www.nytimes.com/2009/02/01/realesta...nted=1&_r=1

It has been suggested that a slowing real estate market will increase the demand for rentals, and therefore create upward pressure on rents. However, based on the above article it looks like the lose jobs are having a stronger effect on rents.

How is the rental market in your area? Do you see a similar direction in different Canadian cities as the job market (likely) worsen in 2009?
What`s your thoughts?

Thanks,
Yehoram.

 

[GarthChapman]

CALGARY-
Our rents in Calgary are lower by 4% overall, and we have no vacancies, although we did have vacancies in Nov and Dec.

Our properties are single family houses and houses with suites.

Those tenants who have renewed are all paying the same rent as previously. Those properties we have new tenants in are paying anywhere from 10% less than the previous tenants up to the same amount as previous tenants were paying.

Mortgage payments are down far more than rents are so all-in-all we are ahead so far.