Calgary Rental Market Cools as Asking Rents Decline Amid Supply Surge
Calgary's rental market shows significant easing with asking rents down over 7%, driven by robust new supply and policy initiatives, offering a reprieve for renters.
Albertans seeking rental accommodation are encountering a reprieve, with asking rents across the province experiencing a consistent downward trend. ATB Economics’ Rob Roach notes this marks a significant shift from 2024’s double-digit increases, suggesting "things are looking up" for renters.
The data corroborates this sentiment. Asking rents for apartments and condominiums in Alberta decreased by 5.3% year-over-year in October. Calgary specifically saw its average apartment rent fall by 7.2% year-over-year to $1,851, marking the second-largest decline nationally, according to Rentals.ca. While the rent component of the Consumer Price Index (CPI) shows a slower decrease, ATB Economics points out this lag reflects renters still on leases signed during higher asking rent periods, with a full impact expected as more units turn over.
Market Dynamics and Policy Impact
This easing is attributed to a combination of increased supply and moderated demand. The Canada Mortgage and Housing Corporation (CMHC) reports Calgary's primary rental market vacancy rate surged to 4.6% and projects it to approach 6% next year, with newer buildings experiencing even higher vacancies. Calgary's robust construction sector is a key driver, with BILD Alberta indicating a 20% increase in housing starts and a 79% jump in purpose-built rental starts in Q3 2025. Over 22,000 dwelling units are currently under construction, with apartments comprising the majority.
Policy interventions are also shaping the market. The City of Calgary approved city-wide rezoning bylaws to facilitate diverse housing forms. Provincially, Alberta's government has earmarked $655 million for the Affordable Housing Partnership Program to deliver 13,000 new units. Demand has also moderated, notably due to a slowdown in non-permanent resident growth, according to CMHC, which has contributed to easing advertised rents across the region.
