While everything important is seeming to cost more and more, there’s at least one major necessity in Alberta that is actually coming down in price.
It’s great news for renters, but may not be as good of news for rental property owners. New data from Rentals.ca shows that the average asking rent for apartments and condominiums in Alberta dropped to $1,691 in October, which is a 5.3% decrease as compared with the same month last year, when the average rent was $1,781. This marks the eighth consecutive year-over-year decline and is a significant turnaround from 2024, when rents were shooting up by double digits.
In dollar terms, Alberta still remains one of the more affordable rental markets in the country. October’s average asking rent was $403 below the national average of $2,094. British Columbia remains the most expensive province, with average rent at $2,401, or $710 higher than Alberta. Saskatchewan posted the lowest average rent at $1,383, which is $308 less than Alberta.
Within Alberta, five of the eight cities tracked by Rentals.ca recorded year-over-year declines in October. Calgary continues to report the highest rental rates in the province at $1,851, and also showed the second-largest drop at 6.8%.
Nationally, asking rents for apartments and condos also moved downward, though by a far more modest 1.3%. British Columbia saw the sharpest decline at 5.8%, while Manitoba and Saskatchewan stood out as the only provinces where rents increased, each rising by 1.8%.
Why are rents coming down?
Several factors are contributing to the downward trajectory of rent. A deluge of newly and purpose-built rental units has increased supply, while a net outflow of non-permanent residents has reduced demand. Together, these changes are helping stabilize the market after years of fast increases.
Rent inflation, as measured by the year-over-year change in the rent component of the Consumer Price Index (CPI), also shows signs of slowing down. After peaking at 16.2% in April 2024, rent inflation in Alberta fell to 3.6% by October 2025.
Some may wonder, however, why CPI-measured rent inflation is still rising when asking rents are falling. This discrepancy occurs because the CPI reflects what tenants are currently paying — not the prices listed for new leases. Many renters are still locked into leases signed during periods of higher rents, meaning the CPI is not yet fully reflecting the recent declines.
As more units are rented at today’s lower rates, analysts expect rent inflation to continue trending downward in the coming months.
What should rental property owners do now?
Now is the time for the rental property owners out there to take proactive steps to protect your investment and maintain occupancy of your units. It is now, more than ever, important to retain your best tenants. Incentives such as flexible lease terms, loyalty discounts, and upgrades like new appliances can help encourage reliable tenants to stay longer.
Freshening up your property’s appeal is also vital. Inexpensive and simple improvements such as fresh paint, updated lighting, improved landscaping, or adding in-demand amenities (perhaps free wi-fi or free utilities?) can help a unit stand out in a competitive market.
Better marketing strategies can also help. Invest in high-quality photos, virtual tours, and clear, appealing listings to attract more interest from better quality renters. Owners may also consider allowing pets to broaden the renter pool interested in your properties.
It’s crucial to keep a close eye on local market trends and price your properties competitively, without undervaluing them. By staying flexible, improving your tenants’ experiences, and maintaining quality standards, landlords can get through a softening rental market successfully.
Don’t forget to revisit your rental property insurance
Remember that if you make any changes to your rental properties it’s a wise idea to revisit your rental property insurance, which is designed to cover the actual land and building being rented and provides liability protection for personal injury and property damage. So, if you install all-new appliances, your insurance company needs to know so they can be reflected in your policy.
As rental property insurance does not cover any of your renters’ possessions or items of value, it is your tenant’s responsibility to protect their own assets by purchasing a renter’s insurance policy. Make sure everything is on the up-and-up by requesting a copy.
Get a free and fast Alberta rental property insurance quote
Lane’s Insurance is a leading Alberta-based insurance brokerage, providing comprehensive insurance services to both rental property owners and their tenants. If you have any questions about rental property insurance in Calgary or the surrounding area, or if you would like to discuss your specific needs with a knowledgeable broker, contact us at our Calgary, Banff, Edmonton, or greater Alberta offices to find out what we can do for you.
