Canada Mortgage and Housing Corporation (CMHC) published its 2026 Mid-Year Rental Market Update on June 9, 2026. Calgary features in almost every section, because few cities have seen rental supply change so quickly.
Calgary 2-bedroom apartment asking rent index (2024 Q1 = 100)
Asking rents are down
Asking rents for 2-bedroom apartments in Calgary continued to decline. On CMHC’s index (Q1 2024 = 100), Calgary stood at 92.3 in Q4 2025, roughly 8% below early 2024. Landlords cite competition from new supply and increasingly offer incentives such as free parking, move-in credits and even months of free rent.
What is “balanced” for Calgary?
CMHC estimates that Calgary’s rental market is balanced at a vacancy rate between 3.0% and 5.5%, higher than the traditional 3% rule of thumb. Calgary’s 2025 apartment vacancy rate of 5.0% sits within that range. CMHC notes that Calgary and Edmonton need higher vacancy before rents stabilize, and that rents rise sharply when vacancy falls below that threshold.
Existing tenants still under pressure
Rents paid on occupied units keep rising, mostly at turnover. CMHC says Calgary and Halifax have seen the most significant deterioration in affordability for existing tenants in recent years. At the same time, Calgary had high vacancy and turnover across all rent levels, which gives renters more mobility.
Our take: for investors, the days of easy rent increases on new leases are over for now; budget for incentives and longer vacancy. For renters thinking about buying, it is a good time to compare the true cost of renting with owning.
Incentives are the new rent cut
CMHC says landlords increasingly rely on incentives as well as lower asking rents, and market intelligence suggests these incentives intensified over the past six months, reaching as high as several months of free rent. That matters when you compare listings: the advertised rent may not be what you actually pay over a year. For landlords, it means the effective rent on a new lease can be well below the headline number.
Asking rents in Calgary, Toronto and Vancouver are still declining, but CMHC notes the declines were less pronounced in the fourth quarter of 2025 than a year earlier. In other words, the fall in rents may be slowing.
New supply is freeing up older units
Calgary’s vacancy rate and CMHC’s balanced range
CMHC’s survey found that vacancy rates rose across all rent levels, and operators report more competition from new developments and tenants more willing to move for incentives. In Calgary, high vacancy and turnover across all rent quartiles show how strong supply growth can make it easier for renters to move. In some other markets, the cheapest units stayed tight, which suggests new buildings were not freeing up lower-priced homes there.
Affordability: new tenants versus existing tenants
For people signing new leases, affordability improved: CMHC’s ratio of asking rents to incomes fell in most large cities, with some of the biggest drops in Vancouver, Toronto, Calgary and Edmonton. For tenants who stay put, it is the opposite. Average rents on occupied units keep rising, mostly at turnover, and CMHC says Calgary’s affordability ratios for existing tenants are approaching levels now seen in Toronto.
What it means
- Renters: shop around at renewal. With vacancy near the top of the balanced range, you may find a similar unit for less, or use offers elsewhere to negotiate with your landlord.
- Investors: model at least one or two months of vacancy per turnover and some incentives. Buildings with older, larger units may now compete with new rentals on price.
- Renters thinking of buying: condo prices are also lower than a year ago. Compare the monthly cost of owning with your actual rent, including incentives.
- Landlords with suites: a well-kept legal suite still rents, but expect tenants to compare it with new buildings that offer parking and move-in credits.
