After two years of historically tight conditions that left Calgary renters scrambling for units and landlords fielding dozens of applications per listing, the city’s rental market has shifted decisively in 2026. Vacancy rates have climbed to their highest level since 2021, advertised rents are declining year-over-year, and a wave of purpose-built rental supply is continuing to hit the market through the second half of the year — changing the equation for both renters and investors in ways that would have seemed impossible eighteen months ago.
According to the Canada Mortgage and Housing Corporation’s (CMHC) 2025 Rental Market Report, Calgary’s vacancy rate for purpose-built rentals reached 3.3 per cent in October 2025 — the most recent annual survey — up dramatically from a record-low of 1.4 per cent in 2023. CMHC projects that vacancy will approach 6 per cent as thousands of additional new units enter the market through 2026, a figure that would constitute a genuinely balanced rental market for the first time since the pandemic.
Rents Peaked — And Are Now Coming Down
Calgary’s average asking rent peaked at approximately $1,661 per month in November 2024 across all unit types. By early 2026, that figure has declined meaningfully. Two-bedroom advertised rents fell 7.2 per cent year-over-year as of January 2025, according to data tracked by liv.rent — the largest annual decline in Calgary’s rental market since the energy sector downturn in 2015-2016.
Current average rents in Calgary for 2026 reflect this easing. A studio apartment now averages approximately $1,150 per month. A one-bedroom unit runs around $1,450. Two-bedrooms average roughly $1,750, and three-bedroom-plus units sit near $2,000 per month. While these figures remain elevated compared to pre-pandemic norms, they represent a genuine improvement in affordability relative to the frenetic peak of 2024 — and Calgary continues to offer dramatically lower rents than Toronto or Vancouver for comparable unit types.
A Historic Construction Boom Is the Driver
The supply-side story behind Calgary’s rental market shift is extraordinary by historical standards. In 2024 alone, Calgary delivered nearly 7,000 purpose-built rental units — a figure that is 165 per cent above the historical annual average, according to CMHC’s mid-year 2025 update. Purpose-built rentals accounted for 68 per cent of all apartment starts in Calgary in the first half of 2025, compared to a ten-year average of just 45 per cent.
This surge in purpose-built rental supply — driven by a combination of federal housing incentives, strong developer interest, and the city’s pro-density planning approvals — represents a structural shift in how Calgary grows its rental stock. Unlike condos, which are frequently purchased by investors who may sell or convert units based on market conditions, purpose-built rentals remain rentals permanently, providing the stable long-term supply that landlord-heavy markets chronically underdeliver.
Renters Now Have Negotiating Power
The practical consequence of rising vacancy is a fundamental shift in the landlord-tenant dynamic. As recently as 2023, Calgary renters were waiving conditions, submitting multiple applications, and in some cases paying first and last month’s rent without even viewing a unit in person. In 2026, that reality has inverted. Landlords are advertising incentives — one month free rent, waived application fees, flexible lease start dates — that would have been unthinkable during the tight market of 2022-2024.
For renters, the window of opportunity is real but may not last indefinitely. CMHC’s projection of vacancy approaching 6 per cent assumes that construction momentum continues through 2026 and that population growth — which is slowing as federal immigration targets are reduced — does not re-accelerate sharply. If interprovincial migration picks up again alongside an oil price recovery, demand could close the supply gap faster than anticipated.
Affordability Relative to Other Canadian Cities
Even at peak 2024 rents, Calgary remained significantly more affordable than Toronto or Vancouver for equivalent unit sizes. A household at Calgary’s median income of approximately $140,200 can comfortably rent a two-bedroom unit while staying within the 30 per cent housing cost threshold that defines affordability — something that is mathematically impossible for most median-income earners in Canada’s two most expensive rental markets.
That relative affordability advantage has been a major factor in Calgary’s population growth and continues to attract workers from across Canada seeking a city where a professional income can support a reasonable quality of life. The City of Calgary’s housing research team tracks these trends and publishes regular updates that provide deeper data for renters, landlords, and policymakers navigating a market that is changing rapidly on all fronts.
For now, spring 2026 represents the best renter’s market Calgary has seen in several years. Those looking to sign new leases should negotiate assertively — the data is firmly on their side.