Can Calgary Landlords Still Cashflow in 2025 With All of The Uncertainty Out There?
Calgary's real estate market in 2025 presents a nuanced landscape for landlords assessing cash flow potential amid economic and political shifts. The Calgary Real Estate Board (CREB) forecasts that housing demand will remain robust, with sales projected to exceed 26,000 units—over 20% higher than long-term trends. This indicates sustained market activity, which is favorable for property owners. Despite uncertainties, the strength of the job market and steady population growth continue to drive rental demand, particularly in established neighborhoods and transit-accessible areas. Calgary Real Estate Wealth helps landlords find good cash flowing properties in great neighborhoods so they can takeadvantage of this demand.
However, the market is expected to transition toward more balanced conditions. Price growth is anticipated to moderate to an annual gain of approximately 3%, influenced by increased competition from new home constructions and heightened economic uncertainties. Rising interest rates may also contribute to more cautious investment behavior, as higher mortgage costs squeeze potential profit margins. For landlords, these developments suggest that while property values may appreciate modestly, rental income could be impacted by an influx of new housing supply. Easing rental rates, driven by higher housing completions and slower international migration, may affect the condominium market more significantly, as tenants have more choices and leverage to negotiate rents.
In January 2025, the average rent for an unfurnished one-bedroom unit in Calgary decreased by $46 to $1,567, reflecting a downward trend in rental rates. This suggests that landlords may need to adjust rental expectations and strategies to maintain occupancy and cash flow. Renters are increasingly looking for added value, such as modern amenities, utility inclusions, or flexible lease terms. Property owners who proactively address tenant needs and maintain their units in prime condition are more likely to secure longer-term leases and reduce turnover rates. To find out if you are charging the right rental rate at your property, contact CREW Property Leasing and ask the experts.
Comparatively, Toronto and Vancouver continue to experience significantly higher rental rates. In Toronto, the average rent for a one-bedroom unit hovers around $2,400, while in Vancouver, it exceeds $2,800. Despite these high rental prices, both cities face challenges related to affordability, stagnating wage growth, and stricter housing policies aimed at cooling the overheated markets. In both cities, the influx of international students and skilled workers maintains demand, but tenants are increasingly seeking more affordable options in surrounding areas or secondary markets. Unlike Calgary, where new housing supply is helping to moderate prices, Toronto and Vancouver continue to struggle with limited inventory and high demand, maintaining upward pressure on rental costs.
The potential effects of future American tariffs on Canadian exports could also impact the Calgary rental market. If tariffs are imposed on key sectors such as energy or agriculture, Alberta’s economy may face downturns, leading to job losses and reduced rental demand. Prolonged economic slowdowns could also result in out-migration to other provinces with stronger job prospects. Landlords may need to anticipate higher vacancy rates and offer incentives to attract tenants during periods of economic strain. Diversifying tenant profiles and catering to professionals from less affected industries could mitigate some of the negative impacts.
Additionally, the outcome of the federal election in April 2025 could shape economic policies affecting the rental market. A Liberal government may continue prioritizing affordable housing initiatives, potentially increasing supply and moderating rent growth through subsidies or stricter rent controls. Conversely, a Conservative government may focus on stimulating private investment and deregulating the housing sector, which could spur new developments but also maintain upward pressure on property prices. Landlords should remain informed and adaptable to policy changes as the political landscape evolves, being prepared to adjust their strategies according to shifts in government priorities and economic policies.
In summary, while Calgary's housing market remains active, landlords should be prepared for moderated price growth and potential adjustments in rental income due to increased housing supply and shifting economic factors. Proactive management and strategic planning will be essential to navigate these changes effectively, including diversifying investment strategies and staying informed about local and federal policy changes.
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Calgary Real Estate Wealth is a full service real estate investment firm that sources, analyzes & negotiates premium investment properties for its investors since 2006. Calgary Real Estate Wealth offers mentorship on all aspects of real estate investing investing through bi-weekly webinars, blogs, podcasts, books & its You tube channel, CREW TV. Calgary Real Estate Wealth also offers, through it's leasing division, CREW Property Services, tenant placement services, ongoing leasing services, and property maintenance and renovations for each property purchased. Real estate investing has never been so easy!
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