Quick answer. Calgary's Q1 2026 rental market is balanced toward tenants for the first time since 2020. Purpose-built rental vacancy reached 5.0 percent in October 2025 per CMHC (up from 1.4 percent in 2023). Citywide advertised rents declined 4 to 8 percent year over year through Q4 2025 and Q1 2026. The decline is concentrated in apartment-style condos; townhouses and single-family rentals have held firmer. Long-term migration fundamentals remain strong, Calgary grew 2.9 percent in 2025 to 1.56 million residents, but the supply pipeline (26,000 units under construction citywide) keeps the apartment segment competitive through 2026 and into 2027.
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.
Q1 2026 Rents by Bedroom Count
Asking rents are decelerating most rapidly at the studio and 1-bedroom end of the market, where new-build supply is heaviest:
- Studios: $1,300 to $1,500 median asking; Q1 2026 down approximately 6 percent year over year.
- 1-bedrooms: $1,500 to $1,700 median asking; down approximately 5 percent year over year.
- 2-bedrooms: $1,700 to $1,950 median asking; down approximately 2.7 percent year over year.
- 3-bedrooms and larger: $2,100 to $2,700 median asking; flat to up 1 percent year over year because new purpose-built supply rarely targets families.
Q1 2026 Performance by Quadrant
- Southwest (SW): vacancy approximately 3.6 percent, the tightest in the city. Average rents have held within 2 percent of 2024 peak levels.
- Northwest (NW): split market. University District and Brentwood new-build towers have softened most; older inner-city NW (Kensington, Hillhurst, Bridgeland) has held firm.
- Northeast (NE): vacancy approximately 6.5 percent, the highest in the city. Concessions like first month free are common in newer apartment buildings.
- Southeast (SE): family-oriented master-planned communities (Mahogany, Auburn Bay, Cranston, Seton) showing the most resilient 3-bedroom rents in the city.
Surrounding Cities Holding Up Better
The communities surrounding Calgary show notably firmer rental performance than downtown Calgary in Q1 2026:
- Airdrie: vacancy approximately 4.8 percent, 1-bedroom average $1,444 per month, 2-bedroom average $1,775. Limited new rental supply.
- Cochrane: vacancy approximately 4.5 percent, 1-bedroom average $1,200 per month.
- Chestermere: vacancy approximately 3.6 percent, premium lakefront market with 1-bedrooms averaging $1,600 per month.
- Okotoks: 1-bedroom average $1,217 per month, stable family-oriented market.
- Strathmore: lower entry prices, stable demand from Calgary commuters.
Incentives and Concessions in Q1 2026
Concessions are back in the Calgary market for the first time since 2020. Common 2026 incentives:
- First month free on a 13-month lease (effective rent reduction of 7.7 percent while preserving face rent).
- Free underground parking for the first 12 months.
- Free internet bundled into rent for the first 6 months.
- Flexible move-in dates and pro-rated first months.
- Statement credits for signing within a defined timeframe ($250 to $500).
Concessions are most aggressive in saturated submarkets (downtown studios, NE apartment buildings, University District new builds) and least common in stable inner-city walkable neighbourhoods.
Looking Ahead to Q2 and Q3 2026
The 2026 supply pipeline continues delivering through summer and fall. CMHC's Q1 2026 read suggests vacancy stabilizing near 5.5 to 6.0 percent through Q3, with potential modest tightening in Q4 as construction starts slow and 2025 deliveries are absorbed. Rents are likely to find a floor in mid-2026 and begin a gradual recovery into 2027. Three indicators to watch:
- Interprovincial migration from Ontario and BC, which has driven Calgary population growth.
- Energy-sector capital expenditure announcements, which historically lead Calgary employment by 6 to 12 months.
- Quarterly absorption rate of new completions, which CMHC publishes.
Frequently Asked Questions
What is the Calgary vacancy rate in 2026?
CMHC reported purpose-built vacancy at 5.0 percent for October 2025, with the 2026 trajectory projecting roughly 5.5 to 6.0 percent through most of the year before potentially tightening modestly in late 2026.
Is Calgary still a good place to invest in rental real estate in 2026?
Yes, with disciplined underwriting. Cash-on-cash yields at 2026 entry prices remain superior to Toronto and Vancouver. Calgary remains the only major Canadian city without rent control. Pro forma at today's softer rents, not 2023 peaks.
When will Calgary rents recover?
Most market analysts expect a gradual recovery beginning mid-to-late 2026 and continuing through 2027, contingent on continued interprovincial migration and slowing supply deliveries. The exact timing depends on absorption rates that CMHC publishes quarterly.
Are Calgary rents going up or down in 2026?
Down through Q1 2026, approximately 4 to 8 percent year over year on asking rents, with apartment-style condos leading the decline. Townhouses and single-family rentals have remained more stable. Expectations are for rents to find a floor mid-2026 and begin recovering thereafter.
Which Calgary neighbourhood has the lowest vacancy?
Southwest Calgary as a quadrant maintains the tightest vacancy at approximately 3.6 percent. Inner-city walkable neighbourhoods like Marda Loop, Mission, and Bridgeland combine SW vacancy patterns with strong tenant retention.
Is downtown Calgary in a rent crash?
Not a crash, but a meaningful re-set. Downtown studio condos have softened most aggressively because new supply targeted that segment. Larger downtown units and character buildings have softened less. Concessions of 7 to 10 percent of nominal rent are common in saturated downtown towers.
What is the best Calgary submarket to invest in for cash flow in 2026?
Surrounding cities (Airdrie, Cochrane) and value-priced Calgary quadrants typically deliver the strongest cash-on-cash returns. Inner-city SW and SE family communities offer stronger blended yield-plus-appreciation profiles.
Last Word
Q1 2026 Calgary is a measured tenant's market where pricing discipline, property quality, and tenant retention matter more than market timing. The structural fundamentals (no rent control, no land transfer tax, strong interprovincial migration) remain intact. The cyclical softness will pass. UrbanLease publishes Calgary rental market data and free rent estimates monthly; the rental market page at urbanlease.ca tracks the data in real time.