Calgary’s Rental Market Shift: Great News for Home Buyers and Sellers

The latest rental market data brings exciting news for Calgary’s real estate landscape. According to a comprehensive report released today by Rentals.ca and Urbanation, Calgary is leading the charge in rental affordability improvements, creating ripple effects that benefit both home buyers and sellers in our vibrant city.

The Numbers Tell a Positive Story

Calgary experienced the most significant rental decline among Canada’s major cities, with apartment rents dropping an impressive 7.9% year-over-year to $1,927. This substantial decrease isn’t an isolated incident – it’s part of a broader 10-month trend of declining rental costs across the nation, with the national average falling 3.6% to $2,121.

What makes this particularly encouraging for Calgary residents is that our city is outpacing the national trend in affordability improvements. While the national rental market shows signs of softening, Calgary is positioned as a leader in providing more accessible housing options.

What This Means for Home Buyers

This rental market shift creates a uniquely favorable environment for potential homeowners in Calgary:

Reduced Competition from Investors: With rental yields declining, some investment property owners may choose to sell rather than continue renting. This increases housing inventory and provides more options for first-time buyers and families looking to upgrade.

Improved Affordability Ratios: Lower rental costs mean residents can allocate more of their income toward saving for a down payment. The $153 annual savings from reduced rent (based on the 7.9% decrease) can contribute meaningfully to homeownership goals.

Market Timing Advantage: The current environment suggests a buyer’s market is developing, where purchasers have more negotiating power and selection. Smart buyers can capitalize on this window of opportunity.

Opportunities for Home Sellers

While declining rents might seem concerning for sellers, the data reveals several positive implications:

Motivated Buyer Pool: As rental costs become more reasonable, more people can afford to live in Calgary, expanding the potential buyer base for your property.

Investment Property Repositioning: Property owners may choose to sell rental units to owner-occupants, often at premium prices compared to investor sales.

Long-term Market Health: The rental market correction indicates a healthy adjustment that makes Calgary more attractive to newcomers and young professionals, future home buyers who will drive demand.

Calgary’s Competitive Advantage

At $1,927 average rent, Calgary remains significantly more affordable than Vancouver ($2,830) and Toronto ($2,587), while offering comparable urban amenities and economic opportunities. This affordability advantage positions our city as an attractive destination for interprovincial migration, supporting long-term real estate demand.

The broader Alberta market shows similar positive trends, with provincial rents down 3.9% year-over-year to $1,738, reinforcing our region’s appeal to cost-conscious residents and businesses.

Looking Ahead

Industry experts predict continued downward pressure on rents heading into fall, suggesting this trend may persist. For our local real estate market, this creates a foundation for sustainable growth built on genuine affordability rather than speculative bubbles.

The current data supports what many of us already know: Calgary offers exceptional value in Canada’s real estate landscape. Whether you’re ready to make your first home purchase or considering selling to take advantage of market conditions, now presents unique opportunities in our dynamic city.

As your local real estate professionals, we’re here to help you navigate these market shifts and capitalize on the opportunities they present. The numbers clearly show Calgary is positioning itself as one of Canada’s most attractive real estate markets – and we couldn’t be more excited about what’s ahead.

Sources: The Canadian Press report “Average asking rents fall annually for 10th straight month to $2,121: report” by Sammy Hudes, published August 8, 2025; Rentals.ca and Urbanation monthly rental report