Average Edmonton rents continued rising in the first half of 2025
Edmonton has emerged as Canada’s most affordable major market for apartment rentals, even as rents have climbed steadily over the past year.
According to Avison Young, a global commercial real estate services firm, Edmonton’s strong rental market is driven by people moving in from other provinces, active investors, and new federal rules changing how multifamily housing works.
Rental rates in Edmonton rose from $1,529 in the second half of 2024 to $1,573 in the first half of 2025, according to Urbanation and Rentals.ca data. Despite this upward trend, Edmonton ranked first in national affordability among major cities, outpacing markets like Toronto and Vancouver by a wide margin. Rental rates in these cities range from $2,500 to $3,000.
“Edmonton, with some of the country’s most accessible rental rates and strong economic opportunities, is continuing to benefit from interprovincial migration, attracting new residents and driving high demand for rental housing,” the report said.
Migration from Ontario and British Columbia has been a key driver, with Alberta recording a net gain of 21,335 people in the latest data.
Housing affordability, cost of living, and employment opportunities were cited as primary motivators for the influx.
“Residents benefit from manageable rents, allowing greater financial flexibility, while investors enjoy strong demand, low vacancy, and consistent cash flow,” the report said.
Meanwhile, a Royal Bank of Canada (RBC) analysis showed rents are now falling in more than half of Canada’s 40 Census Metropolitan Areas compared to a year ago. Other major markets showing significant declines include Kelowna with a $230 drop, Calgary down $170, Toronto falling $160, and Halifax decreasing $150 for two-bedroom units.
Walk-ups remain a competitive asset
Older walk-up apartments in Edmonton have proven resilient, offering cost efficiencies for tenants and stable returns for investors.
“Unlike Vancouver or Toronto, where older stock faces redevelopment pressure and narrowing rent gaps, Edmonton walk-ups remain a unique competitive asset class—defensive in downturns yet rich in value-add opportunity,” the report said.
With limited new construction of comparable low-rise product, these buildings continue to fill a critical role in the city’s rental ecosystem.
For the first time since 2021, Edmonton’s multifamily market saw sale prices per unit rise by over 6% for both older and newer buildings. Transaction volumes approached $1.2 billion in the first half of 2025, reflecting continued investor confidence.
Meanwhile, the Bank of Canada’s recent rate cut to 2.50% may offer modest relief for borrowers, though financing conditions remain tighter than in previous years.
Policy changes challenge investors
The Canada Mortgage and Housing Corporation’s (CMHC) MLI Select program has been key for Edmonton’s multifamily market, providing higher loan amounts and longer repayment terms.
However, as of July 2025, new underwriting standards have tightened debt-service coverage requirements and increased insurance premiums, particularly for high-leverage projects.
“These changes have increased borrowing costs and made financing more challenging for some projects, particularly those relying on maximum leverage,” the report said.
The latest CMHC changes build on a series of policy shifts since 2022, including stricter appraisal requirements and the elimination of multi-parcel bundling, further raising the bar for developers.
