Calgary’s Rental Market Decline: What It Means for Buyers and Sellers in 2025

The most recent National Rent Report from Rentals.ca and Urbanation reveals some striking numbers for Calgary: average asking rents in the city have dropped by 8.9% year-over-year — the sharpest decline among all major cities in Canada. With the average rent sitting at $1,903, this marks Calgary’s lowest rental level in over two years.

On the surface, this sounds like great news for renters. But if you’re a home buyer, seller, or investor in Calgary, it’s essential to dig deeper and understand how these market shifts can impact your real estate decisions.

In this blog post, I’ll break down what this data means, how it ties into broader national rental trends, and what Calgary buyers and sellers should keep in mind when navigating this evolving landscape.

National Rental Trends: A Quick Overview

Across Canada, the average asking rent rose 0.4% in April 2025 to $2,127 — a five-month high and the second consecutive monthly increase. While that seems to point to recovery, rents are still down 2.8% year-over-year, marking the seventh straight month of annual declines.

The market is showing signs of stabilization thanks in part to an influx of new supply. Purpose-built rentals, in particular, saw monthly gains (+0.9% to $2,105), while condo rents and other secondary rental types posted monthly and annual declines. Notably, two-bedroom condo rents dropped by 5.9% year-over-year to $2,344 nationally.

In Alberta, rents fell 0.2% from March and dropped year-over-year. Calgary saw the steepest annual decline among major cities, while Edmonton experienced a modest increase in shared accommodation rents.

Calgary: A Unique Market in Transition

While many Canadian cities are seeing rental prices inch upward, Calgary stands out as an outlier with a nearly 9% year-over-year decline. This might be surprising given Calgary’s strong population growth, economic diversification, and recent gains in home prices.

So what’s driving the dip in rental prices?

A few factors are likely at play:

• Increased rental supply: More purpose-built rentals have hit the market, which eases pressure on demand.
• Affordability-driven migration slowing: Calgary saw a wave of interprovincial migration during the pandemic due to its relative affordability. As that levels out, so does demand.
• High mortgage rates: With ownership still out of reach for some, demand remains present—but renters now have more options and negotiating power.

Now let’s explore how this situation affects both sides of the real estate equation.

What Lower Rents Mean for Buyers

If you’re a prospective home buyer—especially a first-time buyer or investor—Calgary’s current rental market presents some key considerations.

1. Improved Investor Opportunities (With Caution)
   Lower rents may seem like a red flag for investors, but they can also signal opportunity. In a softer rental market, the most strategic investors look for value buys—properties that still offer long-term appreciation potential and strong fundamentals like location, condition, and tenant appeal. However, it’s more important than ever to run accurate cash flow projections and ensure any rental property is purchased at the right price.
2. Renters May Transition into Homeownership
   As rental prices stabilize or fall, the gap between renting and owning narrows. For renters who are financially prepared, this could be a tipping point toward exploring homeownership, especially if incentives like down payment assistance or first-time buyer programs are available. With less pressure in the rental market, these buyers may take their time—but they’re still watching for the right opportunity to jump in.
3. More Choices, Less Competition
   A softer rental market often mirrors a more balanced or slightly buyer-favored real estate market. If rental units are sitting longer or offering incentives, it could indicate less urgency across the board—giving buyers more negotiating power when it comes to home purchases.

What Lower Rents Mean for Sellers

For home sellers, the rental market matters more than many realize—especially in a city like Calgary, where many buyers are also landlords or real estate investors.

1. Investors May Be More Selective
   In recent years, Calgary’s relatively affordable housing market attracted a wave of investor interest. But with rents dropping, investors will be scrutinizing the numbers more closely. If you’re selling a property that appeals to investors—such as a suited home, townhouse, or condo—be prepared to support your asking price with solid rent rolls, low vacancy rates, and minimal maintenance requirements.
2. A Shift in Buyer Motivation
   Buyers coming from the rental market may be feeling less urgency to make a move. With more rental choices and falling prices, they have time to consider their options. Sellers should focus on presentation, pricing, and strategic marketing to ensure their property stands out in a slightly less motivated buyer pool.
3. Time to Rethink Pricing and Strategy
   If your property has been sitting on the market longer than expected, this may be the time to reevaluate your strategy. Are you priced appropriately given current market conditions? Does your marketing highlight features that appeal to both investors and end-users? The most successful sellers are those who adapt quickly—and who work with agents who understand the broader economic and rental trends influencing buyer behaviour.

Navigating Uncertainty with Local Expertise

One of the biggest lessons from all this data? Real estate is hyper-local. National trends are helpful, but decisions in Calgary should always be made with local insight and context.

The rental market is just one piece of the puzzle. As a Calgary REALTOR® with over 15 years of experience, I’ve seen how market dynamics shift—and how the right strategy can still yield great results for both buyers and sellers, even in uncertain conditions.

Whether you’re thinking of buying your first home, investing in a rental property, or preparing to sell your current home, I’m here to help you navigate the process with confidence and clarity. Let’s connect to discuss how these market shifts may impact your goals—and how we can work together to achieve them.

Ready to make a move? Let’s talk strategy.