August 2026

The rental market in British Columbia and Alberta is entering a new phase.

After several years of extremely tight rental conditions, rapidly increasing rents and intense competition for available homes, rental markets across Western Canada are becoming more balanced.

More rental supply is giving tenants additional choices, while landlords are facing greater competition to attract and retain residents.

But the story is not the same everywhere.

According to the latest Canada Mortgage and Housing Corporation (CMHC) analysis, Vancouver and Calgary are experiencing softer rental-market conditions and declining asking rents. Edmonton is also seeing increased supply and higher vacancy, although its market has remained somewhat more stable. (Canada Mortgage and Housing Corporation)

For landlords, property owners and building managers, this represents an important change.

The market is shifting from one where demand often exceeded supply to one where building quality, tenant service, pricing and professional management matter more than ever.

B.C. and Alberta Rental Market at a Glance

The 2025 CMHC Rental Market Survey provides an important baseline for understanding the current market.

Rental Market Vacancy Graphic

In 2025, purpose-built rental vacancy reached:

Vancouver: 3.7%
Calgary: 5.0%
Edmonton: 3.8%

Vancouver’s 3.7% vacancy rate was the highest level in more than 30 years. Calgary’s vacancy remained at 5.0% despite an approximately 11% increase in purpose-built rental supply, while Edmonton’s vacancy increased to 3.8% as supply growth outpaced demand. (Canada Mortgage and Housing Corporation)

These numbers demonstrate that renters have considerably more choice than they did during the tightest periods of the rental market.

British Columbia: Vancouver’s Rental Market Is Becoming More Competitive

Vancouver has experienced one of the most significant changes in Canada’s rental market.

The purpose-built rental vacancy rate reached 3.7% in 2025, the highest level in more than three decades.

CMHC attributes the increase to factors including substantial new rental construction, additional condominium apartments entering the rental market and slower population growth. (Canada Mortgage and Housing Corporation)

For renters, this means more choice.

For landlords, it means more competition.

New buildings are competing with established purpose-built rentals, condominium rentals and other recently completed projects.

This makes factors such as building condition, location, amenities, maintenance and tenant service increasingly important.

Vancouver Rents for New Tenants Have Started to Decline

One of the clearest signs of the changing market is the rent paid by new tenants.

CMHC’s average monthly turnover rent for a two-bedroom purpose-built apartment was:

2022: $2,325
2023: $2,601
2024: $2,883
2025: $2,696

That represents a decline from the 2024 peak, although rents remain substantially higher than they were several years ago. (Canada Mortgage and Housing Corporation)

Download/view the 2-bedroom rent trend graphic

The important point is that the rental market is not simply becoming “cheap.”

Instead, new tenants are gaining more negotiating power as landlords compete for available renters.

Affordability in Vancouver Remains a Major Issue

A higher vacancy rate does not automatically mean that every renter can find an affordable home.

CMHC continues to report significant affordability challenges, particularly for lower-income households.

The lower-priced rental segment remains much tighter than higher-priced units.

This creates two different rental markets.

Higher-priced and newer units

These properties are experiencing more competition and, in some cases, incentives to attract tenants.

Lower-priced units

Demand remains strong because there are relatively few affordable options.

This distinction is important for anyone analyzing Vancouver’s rental market.

A headline saying “Vancouver rents are falling” does not necessarily mean that affordable housing has suddenly become easy to find.

Alberta: A Market Transformed by New Supply

Alberta’s rental market has undergone a major transformation.

Calgary and Edmonton experienced strong population growth and rental demand over the past several years.

That demand encouraged developers to build a significant amount of new rental housing.

Now that much of this supply has reached the market, renters have more options.

This has changed the competitive environment for landlords.

Calgary: Rental Supply Is Growing Rapidly

Calgary’s purpose-built rental vacancy rate was 5.0% in 2025.

At the same time, purpose-built rental supply increased by approximately 11%, the fastest growth in decades. Strong population growth helped absorb much of this new supply and prevented vacancy from rising even further. (Canada Mortgage and Housing Corporation)

Nevertheless, Calgary is now a much more competitive rental market.

CMHC’s turnover-rent data shows the average two-bedroom turnover rent fell from:

$1,927 in 2024 → $1,836 in 2025. (Canada Mortgage and Housing Corporation)

This is an important signal.

Landlords can no longer assume that rapidly increasing demand will automatically support higher rents.

Instead, they increasingly need to compete for tenants.

That competition can include:

Lower asking rents
Free-rent incentives
Parking incentives
Moving allowances
Signing bonuses
Improved amenities
Better tenant service

CMHC reported that rental operators were increasingly using incentives to support lease-up of new properties. (Canada Mortgage and Housing Corporation)

Edmonton: More Supply and Greater Tenant Mobility

Edmonton’s rental market is also becoming more balanced.

The purpose-built vacancy rate reached 3.8% in 2025, while the average two-bedroom rent was approximately $1,603. (Canada Mortgage and Housing Corporation)

Unlike Vancouver and Calgary, Edmonton’s average two-bedroom turnover rent increased slightly:

2022: $1,297
2023: $1,400
2024: $1,560
2025: $1,600

However, CMHC reports that Edmonton’s rental market softened as rental completions remained above historical averages while demand growth slowed. (Canada Mortgage and Housing Corporation)

Tenant mobility has also increased.

The overall turnover rate in Edmonton reached approximately 28.8% in 2025. (Canada Mortgage and Housing Corporation)

That is important for building owners because higher turnover can create additional operating costs.

Rental Market Snapshot

Download/view the rental market snapshot graphic

The three cities are moving toward greater balance, but their markets are behaving differently.

Vancouver: Higher vacancy and declining rents for new tenants.

Calgary: Very strong new rental supply and significant competition.

Edmonton: Increasing supply and tenant mobility, but somewhat more stable rent conditions.

Understanding these differences is essential for landlords and building managers operating across Western Canada.

What Does This Mean for Landlords?

The changing rental market means that landlords need to become more strategic.

When rental demand is extremely strong, a poorly maintained property may still attract tenants.

That becomes much more difficult when renters have choices.

Today’s renters can compare:

Monthly rent
Building condition
Amenities
Location
Parking
Security
Maintenance
Reviews
Management responsiveness
Move-in incentives

The property that provides the best overall value has a significant competitive advantage.

Tenant Retention Becomes More Important

Keeping a good tenant can be considerably less expensive than replacing one.

When a tenant leaves, the owner may face:

Lost rental income
Advertising expenses
Cleaning
Repairs
Painting
Administrative costs
Staff time
Leasing expenses
Utility costs
Incentives for the incoming tenant

The true cost of vacancy can therefore be considerably higher than simply one month’s lost rent.

The Building Manager Becomes More Important

The changing rental market reinforces the importance of professional building management.

A building manager is no longer simply the person who responds when something breaks.

Modern building management can involve:

Tenant relations
Preventive maintenance
Building inspections
Contractor management
Budget management
Operating-cost control
Emergency response
Capital planning
Vendor negotiations
Energy management
Building security
Regulatory compliance
Tenant retention
Property presentation

When the rental market is highly competitive, these responsibilities directly influence the property’s performance.

A poorly maintained building can lose tenants.

Slow maintenance responses can increase complaints.

Poor communication can damage tenant satisfaction.

Inefficient operations can increase costs.

Professional building management addresses these issues before they become larger problems.

Asking Rent vs. Existing Tenant Rent

One of the most important concepts when interpreting rental-market data is the difference between asking rent and average rent.

Asking Rent

The price advertised for a vacant unit.

This can change quickly when market conditions change.

Existing Tenant Rent

The rent being paid by someone already living in the building.

This generally changes more slowly.

That distinction explains why asking rents can decline while average rents across an entire rental market continue to rise.

CMHC’s latest analysis specifically notes that average rents for occupied units can continue increasing even while conditions improve for tenants signing new leases. (Canada Mortgage and Housing Corporation)

Are Renters Finally Getting Relief?

For many renters, conditions are improving.

More supply means more choices.

Higher vacancy means landlords have to compete harder.

Declining asking rents in Vancouver and Calgary can give prospective tenants more negotiating power.

However, affordability remains a serious issue.

Lower-income renters continue to face limited availability in many markets.

Therefore, the current rental market should not be described simply as “good for renters” or “bad for landlords.”

It is becoming more balanced, but affordability challenges remain.

What Should We Expect Through the Rest of 2026?

The overall direction is toward a more balanced rental market.

CMHC’s 2026 Mid-Year Rental Market Update indicates that Vancouver and Calgary are experiencing softer conditions and declining asking rents, while Edmonton is also seeing changing conditions as new supply comes online. (Canada Mortgage and Housing Corporation)

The important question for landlords is no longer simply:

“How much rent can I charge?”

It increasingly becomes:

“How do I keep my building competitive?”

That requires understanding the local market, monitoring competing properties, controlling operating costs and providing tenants with a strong overall experience.

What This Means for the Future of Building Management

The changing rental market creates an important opportunity for professional building managers.

Property owners increasingly need professionals who understand both the building and the business of operating the building.

A successful building manager training program requires understanding four areas:

1. The Building

Maintenance, inspections, preventative maintenance, contractors and capital requirements.

2. The Financial Side

Budgets, operating expenses, utilities, contracts and cost control.

3. The Tenant

Communication, service, complaints, retention and tenant expectations.

4. The Market

Vacancy rates, rents, competing buildings, incentives and changing demand.

The strongest building managers understand all four.

The Bottom Line

The rental markets in British Columbia and Alberta are changing.

Vancouver is experiencing historically high vacancy and increased competition.

Calgary is dealing with a substantial increase in rental supply and greater competition for tenants.

Edmonton is experiencing increased supply and tenant mobility, while remaining relatively stable compared with some other major markets.

For renters, these changes mean more choices.

For landlords, they mean greater competition.

For building owners, they mean professional operations are becoming increasingly important.

And for building managers, the changing market creates an opportunity to demonstrate their value.

The future of rental housing will not simply be about finding tenants.

It will be about keeping good tenants, controlling operating costs, maintaining buildings properly and delivering a professional tenant experience.

As Canada’s rental market continues to evolve, knowledgeable and professionally trained building managers will play an increasingly important role in protecting the performance and value of rental properties, with building manager training becoming a key driver.

**The market is changing.

Professional building management needs to change with it.**

Sources: Canada Mortgage and Housing Corporation (CMHC), 2025 Rental Market Report and 2026 Mid-Year Rental Market Update.

Graphics created for the article

The data in the article is based primarily on CMHC’s 2025 Rental Market Report and June 2026 Mid-Year Rental Market Update, rather than older rental-market figures. (Canada Mortgage and Housing Corporation)

Essential 2026 BC and Alberta Rental Market for Landlords, Renters, and Property Managers