Calgary’s Housing Market Is Rebalancing
By Power Properties, December 1, 2025
Calgary’s housing market has undergone one of the fastest and most dramatic shifts in recent memory. In just a few years, the city has moved from an extreme supply shortage with near-zero vacancy to a market where renters have far more choice and landlords are facing heightened competition. This event is the result of two major forces moving in opposite directions at almost the exact same time. Supply surged to historic levels while demand cooled sharply.
1. A Historic Surge in Demand
The first driver of the recent boom was an extraordinary wave of population growth. For decades, Calgary saw a consistent pattern of about 10,000 international migrants per year. That number jumped to nearly 70,000 at the peak. This created a sudden spike in demand that absorbed every rental available. Vacancy rates fell to record lows, bidding wars became common, and pressure on the city’s housing stock intensified rapidly.
2. A Record Wave of New Supply
Developers reacted quickly. The severe shortage signaled an urgent need for more rental housing, and the construction sector delivered. In 2024 alone, more than 7,500 purpose-built rental units began construction. These projects are concentrated in inner-city neighbourhoods like the Beltline, in new suburban communities throughout the Northwest, and in several major high-rise clusters in the Southwest.
This cycle looks very different from previous ones. Historically, most new multi-family development catered to condo buyers. Today, the majority of new projects are designed specifically for long-term renting. This means the new supply flows directly into the rental market rather than relying on individual condo investors to list their units for rent.
3. A Sudden Slowdown in Migration
At almost the same moment that these new units started to hit the market, demand shifted. Federal policy changes led to a sharp decline in international migration. Calgary went from nearly 70,000 newcomers at the peak to roughly 18,000 so far this year. With fewer people arriving, absorption has slowed. The market is now feeling the full impact of high supply meeting softer demand.
4. A Power Shift Toward Renters
These conditions have created a noticeable rebalancing. With more supply available and fewer newcomers competing for homes, renters now have significantly more options. Incentives are becoming more common, pricing is more flexible, and landlords are competing for attention in a way they have not needed to for years. The dynamic has shifted from a landlord-favoured environment to one where renters hold more negotiating power.
5. What to Expect Next
Vacancy is expected to continue rising through 2025 as more projects reach completion. Elevated competition will likely remain through 2026 while the market works through this wave of new supply. A more stable environment should begin to emerge around 2027 once construction activity slows and the current pipeline of units is fully absorbed.
6. What Landlords Need to Do
In this environment, strategy matters. Older units are now competing directly with thousands of brand-new rentals that offer modern finishes and amenities. Competitive pricing, targeted upgrades, and flexibility with lease terms can make a meaningful difference. The most important mindset shift is simple. Securing a reliable tenant at a reasonable rent is often more valuable than holding out for last year’s record pricing and risking months of vacancy.
About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Edmonton, Lethbridge and Medicine Hat for over 45 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
