Trends And Insights of Alberta’s Booming Rental Market

Alberta, one of three Prairie Provinces, has been the centre of purpose-built rental construction in Canada. Growing population, rising prices and increasing demand – multiple factors corroborate Alberta booming rental market. The province’s population expanded by 4.63% in July 2023. To cater to this demographic outburst, a record 30,364 purpose-built residences have been introduced between the first quarter of 2022 and the third quarter of 2024. Purpose-built rentals are long-term housing options in Alberta designed especially for renters and tenants.

Enters the federal government. To counter Canada’s growing population, the government had set new limits to international migration, reducing the number of people who can enter and stay in the country. Since immigrants rely heavily on rentals, a lower immigrant limit could imply a reduced rental demand. A section of experts fear these measures would dampen the rental demand while a purpose-built rental expansion is already underway. Others believe Alberta booming rental market can easily weather this change.

What’s it going to be? Let’s find out!

What Are Purpose-Built Rentals?

Purpose-built rentals are residential properties designed specifically for long-term occupancy for tenants. These are not available for sale or individual ownership. Purpose-built rentals help address housing shortages in situations of exponential population increase, as is the case in Alberta. With the latest immigration revisions, the average price in Alberta’s rental market dropped by 1% to reach $1,786. At the same time, the asking rental prices across the country dropped for the first time in three years.

However, citing Alberta’s affordability and supply crunch, sustained rent drops are unlikely. “Alberta always gets its fair share of the percentage of immigrants coming into the country, and that’s still going to continue….The shift in immigration won’t severely impact the rental market until we solve this undersupply issue.”, says Altus Group’s vice president Raymond Wong.

Canada Mortgage and Housing Corporation’s last year’s projections highlighted a shortage of 13,000 to 17,000 homes by 2030. The gap is nearly equal to the number of homes built in Alberta since 2018. However, only 15% of these were purpose-built rentals. Addressing these forecasts, Mr Wang remarks, “I don’t think we’re going to see a massive decrease in rents because of supply. We may see a flattening out or a marginal increase in rents, but I don’t see Alberta having a huge oversupply on the purpose-built rental stock.”

Other experts emphasise that government aid is an equally deciding factor in Alberta booming rental market. Edmont-based real estate developer Autograph Group’s President, Henry Edgar, highlighted that the availability of CMHC’s financial schemes, like the Apartment Construction Loan Program and MLI Select, will determine the future of the rental market. The Autograph Group is developing a 730-unit purpose-built rental project in Alberta’s Warehouse District.

Financial Aids for Purpose-Built Rental Developments By CHMC
Apartment Construction Loan Program (ACLP): A low-cost loan program designed to boost rental construction in Canada. The scheme focuses on building affordable, energy-efficient and accessible rental solutions.
MLI Select: Under the Multi-Unit Mortgage Loan Insurance (MLI) framework, this scheme provides favourable financing for rental projects that meet affordability, accessibility, and eco-friendly standards. 

A Special Focus on Calgary and Edmonton

Edmonton and Calgary are two of Alberta’s biggest housing markets. 95% of purpose-built constructions of this province are located in these cities. In October 2024, rental prices in Edmonton grew by 8% year-on-year. On the other hand, the introduction of over 8,000 new rental units in Calgary reduced the asking rent by 5%. Despite these developments, the popularity of these cities among young professionals keeps stakeholders hopeful for positive rental growth.

Bankside Properties’ Cole Richardson cites a slow condo market as one of the primary drivers of new rental construction in Calgary. To capitalise on this opportunity, the group has invested in a two-building mid-budget rental project in Calgary’s East Village. The development will comprise 80 rental units. The project is slated for completion in 2026. Despite an expected population shrinkage of 0.2% by this time, Bankside Properties remains hopeful of strong gains in Calgary. 

Anticipated Projects

With multiple purpose-built developments in the pipeline, here are some of the most anticipated projects in Alberta’s rental market: 

The Parks by Maclabs Development Group

The Parks is an upcoming mixed-use development by Maclab Development Group located at 10135 108 Street, Edmonton, AB. It features a 36-storey building in front of Capital Boulevard and a 45-storey building in front of Jasper Avenue. The two towers sit above a partial two-storey podium, connected by a 13-storey mid-rise building. The Parks features more than 1,000 residential units, ranging from studio to three-bedroom configurations. Residents get standout facilities such as below-grade parking, main-floor commercial space, and indoor access to Corona Station LRT station.

The Shift by The Autograph Group

The Autograph Group’s upcoming 730-unit rental project in Edmonton is called The Shift. It will feature two 35- and 37-storey towers on a four-storey podium, offering a variety of rental options in multiple configurations. The Shift is a transit-oriented project that provides ready access to the Valley Line LRT stop (Alex Decoteau) and Capital Line LRT Stop (Corona). The project will be centrally located in Edmonton’s Warehouse District, featuring street-facing townhouses and ground retail stores as well. 

Academy by University District and Truman

Announced in 2025, the Academy will be Truman’s fourth residential development in Calgary’s University District. This 222-unit purpose-built development will be a landmark addition to Alberta booming rental market. Tenants will get access to 1, 2, and 3-bedroom units ranging from 650 sq. ft. to 900 sq. ft. The project will be located at the corner of Kovitz Avenue and McLaurin Street, N.W., providing excellent views of the Bow River and Rocky Mountains. Residents at the Academy will enjoy a fitness centre, pet spa, residents’ lounge and other amenities. The project is set to be ready for possession in 2027.

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Frequently Asked Questions (FAQs)

Why is Alberta noticing an increase in rental developments?

Alberta’s affordable housing options and strong economic opportunities attract interprovincial and international migrants, driving up the demand for rental housing and spurring new developments.

Are there any government-backed schemes for Alberta’s rental market?

Yes, buyers and developers in Alberta’s booming rental market can benefit from federal schemes like the Apartment Construction Loan Program and MLI Select.

What are some popular purpose-built projects in Alberta?

The Parks by Maclabs Development Group, The Shift by Autograph Group and the Academy by University District and Truman are some notable upcoming projects in Alberta’s rental market.