Calgary’s Rental Market Is Changing — Ayrshire’s Big Bet on Purpose-Built Rentals
Calgary’s rental housing landscape is undergoing a meaningful shift, and one of the clearest indicators of that change is the development strategy announced by Ayrshire — with three major apartment projects poised to deliver nearly 800 new rental homes to the Calgary market, blending market-rate units with assisted housing options.
This surge in new purpose-built rental stock comes at a time when vacancy rates in Calgary are moving back toward a more balanced position following years of extreme tightness.
From Tight Conditions to More Balanced Supply
Just a couple of years ago, Calgary’s rental vacancy rate was exceptionally low; in 2023 it sat around 1.4 %, reflecting intense competition among renters and upward pressure on rents city-wide.(https://www.calgary.ca) However, recent data shows that the overall vacancy rate has climbed significantly. By 2024, the rate rose to 4.6 %, largely driven by a wave of new rental completions, and purpose-built apartment vacancies — a key segment of Calgary’s rental ecosystem — were reported near 4.8 %.(https://www.calgary.ca)
This rise doesn’t mean demand is gone — far from it. Rather, it reflects an influx of supply entering a market that had been undersupplied for years. Trends suggest vacancy rates may rise further as more units are delivered, giving renters more choice and slowing the pace of rent growth.(https://www.calgary.ca)
Why Purpose-Built Rentals Matter
Purpose-built rental developments are constructed specifically for long-term tenancy, as opposed to condos that later become rentals. That difference matters: these buildings often include professional property management, amenities designed for renters, and layouts optimized for long-term living, which makes them attractive to a broad cross-section of tenants seeking stability, quality, and convenience.
For Calgary, the timing aligns with broader rental market dynamics. After vacancy rates climbed significantly from their historically low levels, new rentals have taken longer to lease, helping push the overall rate higher but providing renters with more options than they’ve had in years.(https://www.calgary.ca)
Long-Term Growth & Population Trends
Calgary’s population continues to grow faster than most Canadian cities, and while migration patterns and economic factors influence demand, long-term growth prospects remain strong. Increased supply now under construction — like Ayrshire’s three projects — is vital to ensuring that housing availability keeps pace with ongoing demand.
By introducing both market rate and assisted housing units, developers like Ayrshire are also helping to diversify the housing stock. This mix supports residents across different income levels and household types, which is especially important in a city with rapidly expanding population and changing housing needs.
What This Means for Renters and Owners
For renters, the recent uptick in supply and rising vacancy rates signals more choice and less urgency to accept the first available unit. While rents remain elevated relative to pre-pandemic norms, the pace of rent increases has moderated as new supply meets demand.(https://www.calgary.ca)
For property owners and investors, the shift toward balanced vacancy rates is a reminder that market dynamics evolve with supply, and that purpose‐built rental stock plays a central role in shaping local rental conditions. Projects like those planned by Ayrshire are part of a broader trend where developers are responding to earlier shortages with substantial new inventory — a trend that signals confidence in Calgary’s long-term rental market.
Looking Ahead
As Calgary absorbs these new rental units and vacancy rates settle, the market is likely to find a new equilibrium — one that supports healthy tenant choice while encouraging ongoing investment in rental housing. The thoughtful integration of purpose-built and assisted units in major developments will be a key part of that balanced future.
