The fall edition of the Calgary & Region Economic Outlook was released showing that continued population growth is expected to push accommodation costs higher.
Calgary’s population is forecast to grow by 124,200 persons or by 24,800 persons annually over the next 5 years, up from the annual average of 21,300 for the 2008 to 2013 period. By 2018, the city of Calgary’s population is projected to reach 1.274 million.
Interestingly, the majority of population growth will be due to net migration. In the forecast period, net migration is predicted to account for 71,000 of the 124,200 population growth, with natural increase accounting for the remaining 53,200.
The report cites that the relatively low unemployment rate in Calgary and Alberta compared to the rest of Canada will be a factor in the net migration figures.
Residential vacancy rates are forecast to remain low in 2014 and this should push accommodation costs higher and drive the demand for additional housing units.
To download the entire 16 pg report, click here