As a surge in housing demand during 2023 and 2024 pushed rents in Calgary to astronomical heights, institutions at all levels prescribed what they deemed to be a panacea — more supply.

Two years later, that solution has helped those with higher incomes who can afford newer units, according to a report by the Canadian Mortgage and Housing Corporation, but those on the lower end of the earning scale are still scrambling to find and maintain homes that fit their budget.

Year-over-year asking rents in Calgary dropped from $1,620 to $1,550 for a one-bedroom apartment in the first quarter of 2026. Economists pin that decrease on a higher vacancy rate among newer, more expensive purpose-built rental units that are also less desirable than older, more spacious flats.

For instance, the overall average vacancy rate in the city was five per cent, but only 2.4 per cent of units built between 1980 and 1999 were available for rent. The data illustrate how rental operators rushed in to capitalize on demand a few years ago.

Nearly 5,500 houses were constructed in Calgary in the first quarter of 2026. More than 3,300 of them were apartments, 2,635 of which were rental. Meanwhile, only 1,355 single homes were completed.

Meanwhile, many of these rental apartments are compact, albeit more expensive due to a variety of amenities these buildings offer.

“Historically there seems to be a base level of demand for older units that may have a bit more space to them, but also may be renting at a more affordable rate,” said Taylor Pardy, senior economist at CMHC.

Pardy added that average rents haven’t come down “super significantly” when compared to how they rose as the vacancy rate was squeezed to 1.4 per cent in 2024 due to an influx of migrants.

“The rents right now would still be significantly higher than what you would have paid, you know, three or four years ago,” Pardy said.

And while asking rents have decreased, the rate some are already paying in occupied units are rising, which shows “there are different dynamics by segment of market,” Pardy added.

People ‘at risk of homelessness’ amid affordability, demand concerns, says advocate

That dynamic is pushing many Calgarians to their financial edge.

Michelle James, director of policy at Vibrant Communities Calgary, said many community organizations have told her that demand for “non-market affordable units remains exceptionally high.” The Calgary Housing Corporation has a waitlist of 7,711 households needing affordable homes as of May 2026.

“We’re still seeing folks who are relying on things like income support and living on minimum wage or fixed income experiencing increases in rent, which are increasingly putting people at risk of homelessness,” James said.

“We’re hearing from shelter operators that folks are staying in shelter longer because those affordable non-market units just don’t exist.

“Meanwhile, multi-bedroom units for families with no more than one child are also increasingly hard to come by, and so again resulting in longer shelter stays and a huge competition for those who are seeking those units.”

Asking rents for three-bedroom units have dropped from $1,920 to $1,900 between the first quarters of 2025 and 2026, according to Statistics Canada.

Another factor affecting rents is a lack of rent control. The report also stated that Calgary and Edmonton need a wider vacancy rate for rents to fall, also requiring tenants to actively move out of their apartments and find cheaper options.

Pardy said an increasing number of people are leaving their houses in search of a more affordable place to live, a trend which is commonly referred to as turnover. More than 20 per cent of the most affordable homes in Calgary saw turnover, while more than 27 per cent in the next quartile of rental apartments had new residents.

“We’ve seen vacancies increasing due to new supply coming to market, and it’s helping, and people are able to be mobile within that market, which is a good thing, but it hasn’t eliminated affordability concerns entirely,” Pardy added.