A Silver Lining in Calgary’s Rental Market: What This Means for Homebuyers and Sellers

As a Calgary REALTOR with over 15 years of experience helping families navigate our city’s dynamic real estate landscape, I’m always keeping a close eye on market trends that impact both buyers and sellers. Recently, some fascinating news came across my desk that I believe deserves your attention – and honestly, it’s bringing some much-needed optimism to our local housing market.

The Latest Rental Market Developments

According to Canada Mortgage and Housing Corporation’s 2025 Mid-Year Rental Market Update, released on July 9, 2025, we’re seeing some significant shifts in Calgary’s rental market that are creating ripple effects throughout our entire real estate ecosystem. The report, authored by the REM Editorial Team and published in Real Estate Magazine, reveals that “rental supply has been rising across Canada, putting downward pressure on advertised rents in cities most vulnerable to the ‘headwinds’ brought on by sluggish migration and a slowing labour market.”

What caught my attention immediately was Calgary’s inclusion among the cities experiencing this trend. The report specifically notes that “In Vancouver and Halifax, prices were down nearly 5 per cent for two-bedroom purpose-built rental apartments, and down about 3.5 per cent in Calgary and Toronto.”

Now, before you start worrying about what this means for property values, let me share why I see this as a positive development for both buyers and sellers in our Calgary market.

Why This is Good News for Calgary Homebuyers

After years of watching rental prices climb seemingly without end, this cooling trend presents some excellent opportunities for prospective homebuyers in Calgary. Here’s how this shift benefits those looking to purchase their first home or upgrade to their next property:

Reduced Competition from Investors When rental yields become less attractive due to declining rents, some real estate investors naturally pull back from the market. This reduction in investor competition means fewer bidding wars and more negotiating power for owner-occupant buyers. I’ve already started noticing this trend in some of Calgary’s popular investment neighborhoods, where properties are staying on the market a bit longer, giving genuine homebuyers more time to make thoughtful decisions.

More Affordable Transition Periods One of the biggest barriers to homeownership has been the cost of temporary housing during the transition period. Whether you’re relocating to Calgary from another city or moving from a rental to your first home, the high cost of short-term rentals has made these transitions financially challenging. With rental prices moderating, families have more flexibility in their moving timelines and can better manage their cash flow during the home-buying process.

Improved Debt-to-Income Ratios For renters who have been dedicating a significant portion of their income to housing costs, the moderation in rental prices provides an opportunity to improve their financial position. Lower rental costs mean more money available for saving toward a down payment, paying down existing debt, or building an emergency fund – all crucial factors that mortgage lenders consider when evaluating loan applications.

Market Stability Signals The CMHC report indicates that while rental prices are moderating, it’s due to increased supply rather than economic distress. This is a healthy market correction that suggests our housing market is finding a more sustainable equilibrium. For buyers, this creates confidence that they’re entering the market during a stable period rather than at an unsustainable peak.

The Seller’s Perspective: Opportunity in Disguise

Now, I know what some of you homeowners might be thinking – “If rental prices are dropping, what does this mean for my property value?” Let me reassure you that this trend actually presents several advantages for sellers in Calgary’s current market:

Increased Buyer Pool As rental costs become more reasonable, more people can afford to save for homeownership. This expanded buyer pool means more potential purchasers for your property. I’ve noticed that when rental markets cool, we often see a surge in first-time buyers who finally have the financial breathing room to make the leap to ownership.

Less Competition from Rental Properties When rental prices are sky-high, many potential buyers choose to continue renting rather than purchase. With more affordable rental options available, people are making housing decisions based on lifestyle preferences rather than pure financial pressure. This often leads to more motivated, qualified buyers who genuinely want to own rather than those who feel forced into purchasing.

Stronger Local Economy Indicators The CMHC report notes that “labour markets in Vancouver and Toronto are showing some signs of weakening, while conditions are relatively strong in Halifax, Calgary and Edmonton so far in 2025, due to elevated full-time employment gains.” This is fantastic news for Calgary sellers because it indicates our local economy remains robust, supporting both employment and housing demand.

Strategic Pricing Opportunities With a more balanced rental market, sellers can price their properties more competitively without fear of losing potential buyers to overpriced rentals. This creates opportunities for strategic pricing that can lead to quicker sales and potentially multiple offers from qualified buyers.

Understanding the Broader Context

The CMHC report provides valuable context about what’s driving these changes. According to the publication, “The cap on international student intake and adjustments to their provincial distribution are influencing rental demand in British Columbia, Ontario and Nova Scotia. These provinces all saw declines in work and study permit holders in Q1 2025, while growth in the number of non-permanent residents slowed in Quebec and Alberta.”

For Calgary specifically, this means we’re experiencing a more gradual adjustment rather than the dramatic shifts seen in some other major Canadian cities. Our local market benefits from continued economic strength while avoiding some of the volatility experienced elsewhere.

The report also highlights that “demand is softening due to sluggish labour markets” nationally, but notes that Calgary’s conditions remain “relatively strong” compared to other major centers. This positions our city favorably for both buyers and sellers navigating the current market conditions.

What This Means for Calgary’s Future

Looking ahead, the CMHC anticipates that “over the rest of 2025, the rental market is also expected to be influenced by slower population growth and changing employment conditions.” However, they also emphasize that “while the market may have abundant supply in the short-term, there is still a need to maintain momentum in new rental supply to meet the needs of projected future population growth and to achieve better affordability outcomes for existing households.”

This forward-looking perspective suggests that Calgary’s current rental market adjustment is part of a healthy rebalancing rather than a long-term decline. For homebuyers and sellers, this indicates that we’re moving toward a more sustainable, balanced market that serves the needs of all participants.

Practical Advice for Calgary Buyers and Sellers

Based on my experience and the insights from this CMHC report, here’s my practical advice for navigating Calgary’s evolving market:

For Buyers: Take advantage of the current market conditions by getting pre-approved for a mortgage and starting your search now. The combination of moderate rental prices and steady employment growth creates an excellent environment for making a thoughtful home purchase decision. Don’t rush, but don’t wait indefinitely either – good opportunities in a balanced market can still move quickly.

For Sellers: Price your property competitively and ensure it shows well. While you may not see the rapid appreciation of previous years, the steady demand from Calgary’s strong employment market provides a solid foundation for successful sales. Consider the benefits of selling in a market where buyers have more financing options and less pressure from expensive rental alternatives.

The Bottom Line

The CMHC’s 2025 Mid-Year Rental Market Update reveals that Calgary is experiencing a healthy market adjustment that benefits both buyers and sellers. Rather than viewing moderated rental prices as a negative indicator, I see this as evidence of a maturing, more balanced housing market that serves the long-term interests of our community.

As someone who has guided countless families through Calgary’s real estate market over the past 15 years, I can say with confidence that these conditions represent some of the best opportunities I’ve seen for both buying and selling homes. The key is working with experienced professionals who understand how to navigate these market dynamics and position you for success.

Whether you’re considering buying your first home, upgrading to accommodate a growing family, or selling to downsize for retirement, Calgary’s current market offers unique advantages that we haven’t seen in years. The combination of moderate rental costs, strong employment growth, and balanced supply conditions creates an environment where informed decisions can lead to excellent outcomes.

If you’re ready to explore how these market conditions might benefit your specific situation, I’d love to discuss your goals and help you develop a strategy that takes advantage of Calgary’s current opportunities.

Source: “Rents suppressed by migration and jobs slowdown: CMHC” by REM Editorial Team, Real Estate Magazine, July 9, 2025