A new report shows developers are shifting strategies in Calgary as financing rules tighten
Calgary’s multifamily sector is seeing increased attention from institutional investors, with real estate investment trusts and private developers expanding holdings and pursuing large-scale rental projects. According to Avison Young’s Fall 2025 Calgary Multifamily Overview, zoning reforms introduced in August 2024 have accelerated middle-density housing, making it easier for new developments and conversions to enter the market.
“Demand is still there for Calgary product,” said Haig Basmadijian, associate vice president of multifamily investment sales at Avison Young. “Buyers have and will continue to identify Calgary as a major market for entrance and expansion, encouraging transactions and development in the space.”
Urban and transit-oriented hubs see activity
Development has clustered around urban centres such as the Beltline, East Village, Bridgeland, and Mission. These areas benefit from revitalization projects, mixed-use amenities, and future connections to the Green Line transit expansion, according to the report. Suburban districts in the southeast and southwest remain tight, supporting resilient rents despite a broader market slowdown.
Mason Thompson, associate vice president of multifamily investment sales at Avison Young, noted that “Calgary’s multifamily market has firmly established itself as one of the country’s most attractive investment environments. Institutional capital and private developers alike are scaling up activity, driven by favourable zoning reforms that are unlocking middle-density housing and supporting new rental supply across key nodes.”
Financing shifts and market stabilization
The report shows that while investment sales volumes in 2025 are on track to nearly match last year, average sale prices have moderated after two years of rapid increases. Tighter financing requirements from Canada Mortgage and Housing Corp. (CMHC), including higher insurance premiums, are reshaping buyer strategies.
“Financing has become more complex under new CMHC rules, requiring sharper underwriting and pricing discipline, yet sales volumes remain on pace,” Thompson said.
Source: Avison Young
Older buildings constructed before the 1990s are gaining popularity as investors target repositioning opportunities and higher yield potential. Meanwhile, newer post-1990s inventory faces pricing pressure as rent growth stabilizes.
Outlook supported by strong fundamentals
Despite modest increases in interest rates and bond yields, lenders remain active in the multifamily space. Brennan Yadlowski, principal and managing director of Calgary, AB, added that the possibility of a Bank of Canada rate cut before the end of 2025 “could create momentum for acquisition financing of multifamily real estate.”
Population growth through interprovincial migration, coupled with economic opportunities and resilient fundamentals, continues to support Calgary’s rental market. As Thompson emphasized, the market is “maturing into stability while retaining robust long-term fundamentals.”
Other key findings
The report highlighted that Calgary rents have stabilized around $2,000 per month across unit types after several years of sharp increases, offering more predictability for both landlords and investors. New supply is entering the market at a pace comparable to 2023, with developers increasingly allocating portions of projects to below-market rental units to access funding incentives.
Vacancy rates have risen slightly due to the surge in completions, but remain manageable, with affordability pressures continuing to drive demand for a mix of market and subsidized housing.
Year-to-date, 2,169 units have sold, with 39 rental developments under construction and 68 more in proposal stages.
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