Alberta and B.C. Rents Drop 5.5% as Rental Market Cools in Fall 2025

For the first time in years, renters in Alberta and British Columbia are seeing a little relief.
According to a new Rentals.ca and Urbanation report, average asking rents in Alberta fell 5.5% in September 2025 compared to the same month last year.

The findings suggest that demand in the rental market is beginning to ease after several years of rapid growth.

Alberta: Slight Cooling After Record Highs

Just a year ago, Alberta had some of the fastest-growing rent prices in Canada, driven by record migration and limited supply.
Now, things appear to be shifting:

Average rent: Down 5.5% year-over-year (Rentals.ca / Urbanation)
Main driver: Higher vacancy rates in major cities like Calgary and Edmonton
Trend: More listings, longer time-on-market, and tenants negotiating lower prices

Experts believe this cooling trend reflects a better balance between supply and demand, especially as new purpose-built rentals enter the market and migration stabilizes.

British Columbia: Softening After Years of Pressure

British Columbia also saw similar declines, with rent prices dipping for the first time since 2020.
In Metro Vancouver, smaller units and older apartments are seeing the most price cuts.

This comes after years of steep increases that priced out many renters, pushing some to relocate to Alberta and Atlantic Canada for affordability.

Why Rents Are Falling

Several factors are contributing to this rent relief:

More new rental construction reaching completion across Western Canada
Lower in-migration rates compared to 2023–2024 peaks
Economic uncertainty causing renters to stay put or downsize
Cooling real estate market reducing pressure from would-be buyers competing for rentals

Overall, the market is not crashing—it’s simply normalizing after an overheated stretch.

What This Means for Renters and Landlords

For Renters:
Now is a good time to explore your options or renegotiate your lease. More listings mean better selection and slightly more bargaining power.

For Landlords:
Be prepared for longer listing times and more competition. Offering incentives—like free parking or flexible leases—can help attract tenants quickly.

Outlook

Analysts expect the rental market in Alberta and B.C. to remain stable through early 2026, with moderate adjustments rather than steep drops.
If new construction continues and population growth slows, renters could see continued relief into next year.

References:

For more insights, trends, and listings across Canada’s real estate market, follow @canadahousingmarket on Instagram for more updates.

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