Is Alberta Real Estate Still a Smart Investment? 5 Questions Every Investor Should Ask
Alberta Real Estate and Rental Market Update: Calgary, Edmonton, Lethbridge & Medicine Hat
July 1, 2025 - Written by Jamie Palmer, President & Broker of Power Properties
In real estate, confidence matters—but so does curiosity. At Power Properties, we believe Alberta remains one of Canada’s most promising markets for rental property investors. But belief alone isn’t enough to guide smart decisions.
This year, we decided to challenge our own assumptions by asking the hard questions that every investor should consider before buying their next property or selecting a property management company to help protect their investment. The answers we found were both reassuring and eye-opening.
Here are five questions you should be asking—and what they mean for your investment strategy in Calgary, Edmonton, Lethbridge, and Medicine Hat.
1️⃣ What if interest rates stay high?
Higher interest rates have undeniably changed the landscape for buyers and investors alike. While rates have stabilized, they’re still significantly above the historic lows we saw in recent years.
But higher rates also bring an unexpected upside: rising rental demand. As more would-be homeowners are priced out of buying, they remain in the rental market longer. In Alberta, this dynamic has supported strong occupancy rates and rental growth, helping offset higher borrowing costs.
2️⃣ What if population growth slows?
Much of Alberta’s recent success has been driven by interprovincial migration and international immigration. But what happens if that momentum eases?
Even under more conservative growth scenarios, Alberta faces a structural housing shortage. Demand continues to outpace supply by tens of thousands of homes. While a slowdown could moderate price growth, the fundamentals still point to a resilient rental market, particularly in affordable cities.
3️⃣ What about climate risk?
Climate risk often flies under the radar in Alberta, but it’s becoming harder to ignore. While the province isn’t heavily forested and generally avoids catastrophic wildfires, other risks are more immediate.
Alberta sits squarely in Hailstorm Alley, and insurance costs are climbing as severe weather events become more frequent. These rising expenses can impact returns over time and should be factored into your projections.
4️⃣ Are small cities riskier?
Lethbridge and Medicine Hat stand out for their affordability and growth potential. However, they also carry concentration risk—meaning their economies rely heavily on a few major employers or industries.
For example, a university downsizing or an agriculture slump could ripple through housing demand more severely than in larger, diversified cities.
5️⃣ Will Alberta stay affordable?
Compared to Ontario and B.C., Alberta remains a beacon of affordability. Attractive housing prices and a lower cost of living continue to draw families and professionals seeking better value and quality of life.
While rising interest rates and population growth are putting some upward pressure on prices, Alberta’s relative affordability continues to be a competitive edge—especially in smaller centres.
The Bottom Line?
The bottom line? Alberta is still a strong place to invest—but it’s not invincible. Asking the right questions today is how you protect your wealth tomorrow.
Whether you’re considering buying your first rental or leveraging equity in an existing property, we’re here to help you make smart, informed decisions—without pressure. Our experienced property management team can guide you every step of the way.
Ready to explore your options?
Contact us for a complimentary consultation or stop by our Annual Stampede Breakfast on July 9th, 2025 at our Calgary headquarters. We’d love to connect with you in person—over pancakes, of course.
Learn More About our Property Management Services
Written by Jamie Palmer, President & Broker of Power Properties
Jamie Palmer is the President and Broker of Power Properties. He holds a Certified Property Manager (CPM®) designation, the highest designation in Property Management in North America. He earned an Honors degree from the University of Toronto, and he has over two decades of experience in property management.
About Power Properties
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, Lethbridge and Medicine Hat for over four decades. 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.
