Rent increases and low vacancy forecasted for Edmonton through 2026

Renting in Edmonton is looking to be tight for at least the next couple of years, with a new report detailing low vacancy and steady price increases in the city.

The Canadian Mortgage and Housing Corporation (CMHC) released its 2024 housing outlook on Thursday, and Edmonton’s housing market is forecasted to see strong housing starts, growth in the resale market, and rental demand surpassing supply this year.

As Edmonton’s population grows, strong demand for rental units and insufficient supply are forecasted to lead to further declines in vacancy rates in 2024 and 2025, CMHC says.

Thanks to stubbornly low vacancy rates, the average rent for two-bedroom apartment units is expected to increase further this year and until 2026, exceeding the 10-year average. 2024 is forecast to reach $1,481, while 2025 and 2026 are projected to climb to $1,529 and $1,554, respectively.

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However, if construction aimed at meeting rental market demand aligns with expectations, vacancy rates could marginally increase by 2026.

CMHC, CREA

The CMHC says that new apartment buildings intended for long-term rental use are not expected to play a significant role in expanding supply in the long term.

It’s a similar story for our friends down in Calgary, with rent increases on the table through 2026, though higher than we’re seeing in Edmonton.

The average rent for a two-bedroom apartment in YYC is forecasted to increase from 2024 to 2026, with 2024 forecast to reach $1,859, while 2025 and 2026 are projected to climb to $1,922 and $1,951, respectively.