On December 17, 2024, CMHC released its annual Rental Market Report. Canada’s supply of purpose-built rental apartments grew by 4.1%, the highest increase in over 30 years.
Canada rental market, 2023 vs 2024, %
National findings
- The national vacancy rate rose from 1.5% in 2023 to 2.2% in 2024.
- Average rent for a two-bedroom unit rose 5.4%, down from a record 8% in 2023.
- When a unit turned over to a new tenant, rent rose 23.5%, unchanged from 2023.
- Rented condominium vacancy stayed at 0.9%, and the average two-bedroom condo rent rose to $2,173 from $2,049.
Calgary
CMHC said Calgary’s rent growth slowed significantly in 2024 but still outpaced all other large urban centres. Demand for rentals stayed strong because of migration-led population growth and stable economic conditions, despite higher unemployment.
What it means
For investors, rent growth is slowing as new rental buildings open. For tenants, the gap between renewal and new-lease rents is still large, which keeps many renters in place and keeps some looking at buying.
Calgary in numbers
CMHC’s full report gives the local detail. The vacancy rate for purpose-built rental apartments in the Calgary census metropolitan area rose to 4.8%, from 1.4% in 2023, ending a three-year decline. The average rent for a two-bedroom unit was $1,882, and same-sample two-bedroom rent rose 8.9%, still the fastest increase among Canada’s largest markets. Calgary’s stock of purpose-built rental apartments grew by 10.0%, the largest annual increase since 1990, driven by new completions and conversions.
Rental vacancy rate, %
Why vacancy rose
CMHC said the influx of new buildings, which took longer to lease fully, drove the vacancy rate up. Buildings constructed in 2015 or later had an average vacancy rate of 7.1%, likely because their rents are higher than in older buildings. The Downtown zone saw the largest vacancy growth, as many bachelor and one-bedroom units stayed empty while renters looked for more bedrooms. Landlords are responding with incentives such as rent-free months, signing bonuses and gift cards for longer leases.
Compared with 2023
A year earlier, Calgary’s vacancy rate was just 1.4%. In 2024 renters have more units to choose from, and rent growth slowed. But rents still rose faster than in other big cities, and CMHC said incomes have not kept pace with rising costs. The rented condominium market stayed tight, with a vacancy rate of 1.3% and an average two-bedroom rent of $1,970.
What it means for buyers and investors
Investors buying a condo to rent out face more competition from new purpose-built buildings. CMHC said the gap between asking rents for vacant units and rents for occupied ones was largest in North Hill, Downtown and the Beltline, so many tenants stayed where they were. For renters thinking of buying, high rents remain a reason to compare monthly costs with ownership, and CREB reported 1,482 apartments for sale in November, more than in the spring.
What it means for sellers
Owners selling a rented condo should expect buyers to check local rents and vacancy closely. A unit with a stable tenant and a rent in line with the market may appeal to investors, while a vacant unit competes with new buildings that offer incentives.
Practical takeaways
Look at rents in the specific zone, not the citywide average. Investors should budget for longer vacancies, especially in newer buildings. Tenants have more bargaining power than a year ago and can ask about incentives before signing.
What comes next
CMHC expects more purpose-built rental units to be added to Calgary’s stock in coming years, given the strong pace of construction in 2024. Nationally, CMHC’s Deputy Chief Economist Tania Bourassa-Ochoa said record growth in rental supply helped slow average rent growth and raise vacancy rates closer to the historic average, “underscoring the critical role of added supply in improving housing affordability.”
