2025 Year End Report & What to Expect for 2026

As 2025 comes to a close, Calgary’s rental housing market reflects meaningful shifts—rising inventory, softer rents in some segments, and broader economic transitions that have influenced both demand and investor sentiment. For rental property owners, the year underscored the value of quality management, disciplined tenant selection, and staying competitive in a market that has shifted from scarcity to balance.

Calgary & Alberta Rental Market Overview

A significant influx of new multi-family developments reached completion in 2025, with many projects initiated during the high-migration cycle of 2021–2023. This new supply has created more choice for renters, pushing vacancy rates higher and extending leasing timelines across several neighborhoods.

Demand remains steady but more price-sensitive. Executive single-family homes continue to perform well, though tenants today negotiate firmly and are highly selective. Older or less-updated condominiums have required rent adjustments or upgrades to remain competitive. Incentives—once rare—have become more common, particularly among developers with large inventories to fill.

In short, Calgary moved from a tight rental environment to one that is more balanced, competitive, and driven by tenant expectations for value, condition, and presentation.

Economic Context & Energy Sector Shifts

Alberta’s economy in 2025 has been resilient and diversified. The province continues to see strength in logistics, tech, renewable energy, and professional services—sectors that help buffer the volatility traditionally associated with oil and gas. This diversification positions Calgary for long-term stability, attracting a broader workforce and supporting ongoing baseline demand for housing.

However, the local oil patch made headlines this year:

• Imperial Oil announced cuts of approximately 800 jobs, including relocating a significant number of roles from Calgary to Edmonton.
• ConocoPhillips and other major operators repatriated select corporate roles back to the United States, affecting Calgary’s executive-level tenant pool.

These shifts have created pockets of rental softness, particularly in higher-end corporate leases that previously depended on a steady inflow of relocations. The broader takeaway is that relying solely on energy-sector tenants is no longer sufficient—diversification in Calgary’s economy, and in rental strategies, is critical to long-term portfolio performance.

Looking Ahead: 2026 Forecast

The outlook for 2026 is cautiously optimistic, with several themes worth noting:

1. Rents Will Stabilize, Not Accelerate

With new inventory still entering the market, rent growth will remain moderate. Select segments—like older condos or premium properties priced above market—may see slight downward pressure.

2. Tenants Will Be More Selective

Renters will favour:

• Updated, move-in-ready properties
• Strong professional management
• Fair, stable rental terms

This is a “value-seeking” market.

3. Economic Diversification Will Support Demand

Growth in tech, renewable energy, infrastructure, aviation, engineering, and logistics will continue to attract talent. These sectors diversify Calgary’s tenant base and help offset variability in energy-related housing demand.

4. Potential Rate Cuts Could Increase Real-Estate Activity

Lower lending rates later in 2026 may rejuvenate investment, encourage developer activity, and affect the rent-vs-own decision for many families.

What Should You Do as a Property Owner?

Citysearch’s guidance for 2026 remains rooted in protecting your asset, your cash flow, and the long-term value of your investment.

1. Keep Solid Tenants in Place

The best insurance against vacancy is a responsible, stable tenant. We strongly recommend renewing good tenants, even at status quo or slightly lower rents, to increase the likelihood of long-term occupancy.

2. Prioritize Single-Family Homes in Desirable Communities

In our view, the most resilient investment continues to be detached single-family homes in established, sought-after neighbourhoods. Demand remains strong for these properties regardless of market cycles.

3. Maintain Properties Proactively

Well-maintained homes lease faster, attract better tenants, and reduce long-term repair costs. Regular upkeep is not optional—it is strategic.

4. When a Property Becomes Vacant, Make It “Show-Ready”

Vacancy is expensive.

Ensure your property:

• Is spotless
• Has all minor repairs completed
• Presents well in photos and in person

This minimizes downtime and maximizes rental outcomes.

5. Focus on Leasing—But Never Compromise Tenant Selection

Even in a slower market, we never lower our standards.

Thorough screening protects your investment and reduces the risk of arrears, damage, and turnover.

6. Review Your Portfolio Annually

Ask:

• Should a property be renovated to remain competitive?
• Does it still fit your investment goals?
• Are operating costs in line with market norms?
• Is refinancing advantageous as rates adjust?

Portfolio discipline leads to better long-term performance.

7. Consider Strengthening Your Reserve Strategy

Economic transitions highlight the importance of holding a reasonable contingency fund to address maintenance needs quickly and protect asset value.

Conclusion

Calgary enters 2026 with a more balanced rental market, a shifting economic landscape, and evolving corporate activity. In this environment, the most successful property owners will be those who retain quality tenants, maintain competitive rent levels, reinvest in their assets, and continue to prioritize strong tenant selection and diligent management. For properties with solid, established tenancies, our number one recommendation is simple: tenant retention. Keeping a great tenant in place is often the strongest strategy in a softening market.

At Citysearch, our role is to help you navigate these transitions with clarity, strategy, and hands-on support. Your property deserves a proactive, informed approach—and we remain steadfast in delivering Dream Results™ in every market condition.

On behalf of the entire Citysearch Property Management team, and on behalf of your resident, thank you. We sincerely appreciate your confidence in us and value our partnership in managing your home.

Lisa Hamielec, P.Eng. 

Broker 

Citysearch Rental Network Inc.