Rent in Calgary is shaping up to be rough for at least the next couple of years, with a new report detailing steady price increases in the city.
The Canadian Mortgage and Housing Corporation (CMHC) said in its 2024 Housing Market Outlook released on Thursday that, despite a growing rental universe, the vacancy rate for purpose-built rental apartments in Calgary is forecast to edge lower in 2024 and 2025.
Rental units will remain in short supply as demand continues to be driven by population growth combined with less mobility into homeownership.
Thanks to stubbornly low vacancy rates, the CMHC expects the average rent for two-bedroom apartment units to increase further this year and until 2026. 2024 is forecast to reach $1,859, while 2025 and 2026 are projected to climb to $1,922 and $1,941, respectively.
Last year in Calgary, the average cost of rent surged by 14.3%, the fastest pace in over a decade, as the vacancy rate declined to 1.4%.
Sources: CMHC, CREA
The CMHC report added that rent prices in Calgary will continue to face upward pressure as rental demand outpaces supply in the short term, along with new higher-priced rental apartment units added to the rental universe will contribute to higher average rents.
It’s a similar story for our friends up in Edmonton. With the price of rent increases on the table through 2026, however, they aren’t nearly as high.
The average rent for a two-bedroom apartment in YEG is forecasted to increase from 2024 to 2026 at a pace exceeding the 10-year average, with 2024 forecast to reach $1,481, while 2025 and 2026 are projected to climb to $1,521 and $1,554, respectively.