Calgary's rental market has entered a new phase in 2026. After years of historic tightness — vacancy hit 1.4% in 2023 — record new supply has rebalanced the market. Purpose-built vacancy now sits at 5.0% (CMHC, October 2025), rents are softening in the apartment segment, and tenants have more negotiating power than at any point since 2020. Here's what the data says and what it means for Calgary landlords.
Vacancy Rates
Calgary's purpose-built rental vacancy climbed from 1.4% (2023) to 4.6% (2024) to 5.0% (October 2025, CMHC) as over 7,000 new units completed in 2024 — the fastest rental supply growth in decades. New developments in the Beltline, East Village, and NE suburbs are absorbing slowly, leading many landlords to offer incentives like first month free rent and flexible deposits.
Rent Trends
Average Calgary advertised rents declined 4–8% year-over-year through 2025–2026, reversing the gains of the previous two years. CMHC data (October 2025) shows purpose-built 1-bedrooms averaging $1,581/month and 2-bedrooms averaging $1,908/month, while Zumper asking rents show 1-beds at $1,619 and 2-beds at $1,880. The decline is concentrated in apartment-style condos — townhouses and single-family rentals have held much firmer due to limited new supply in those categories.
Migration Driving Long-Term Demand
Despite the softer short-term market, Calgary reached 1.56 million residents in 2025, growing at +2.9% — tied for highest among all major Canadian cities (Statistics Canada). Interprovincial migration from Ontario and BC continues strongly — driven by Calgary's tax advantage (no provincial income tax, no PST) and housing affordability relative to Vancouver and Toronto. Long-term rental demand fundamentals remain intact; excess supply is expected to be absorbed by 2027.
New Supply Pipeline
CREB's 2026 forecast notes approximately 26,000 units currently under construction in Calgary, with 45% designated as rental. This pipeline will continue adding inventory through 2026–2027, keeping apartments competitive. Landlords in this segment should focus on pricing accuracy, property condition, and tenant retention — turnover costs are high in a tenant-friendly market.
Surrounding Markets
Airdrie (4.8% vacancy, 1BR avg $1,444), Cochrane (4.5% vacancy, 1BR avg $1,200), and Chestermere (3.6% vacancy, 1BR avg $1,600) are holding up better than Calgary's apartment core. These markets have far less new supply pressure and continue to benefit from Calgary-employed renters seeking more space. Okotoks (1BR avg $1,217) and Strathmore also remain competitive for landlords.
What This Means for Landlords
2026 is a market where pricing accuracy and property quality matter more than they have in years. Overpriced or under-maintained properties will sit vacant for weeks. Well-priced, well-managed properties in good locations are still renting within days with multiple qualified applicants. Get a current rent estimate, price competitively from day one, and invest in retaining good tenants — the cost of turnover in this market is real.