Investing in Real Estate in Calgary: What You Need to Know
Why Calgary Is on Every Investor’s Radar
Calgary has quietly become one of the most attractive real estate markets in Canada. With moderate home prices, strong population growth, and a more balanced rental market, it offers both opportunity and stability for long-term investors.
As of late 2025, the average home price in Calgary sits around $615,000, a far cry from the million-dollar averages in Toronto or Vancouver. Rents for one- and two-bedroom apartments range between $1,650 and $2,050 per month, depending on the area and amenities. That puts Calgary’s gross rental yields in the 3–4% range, which is modest but sustainable — especially when paired with lower property taxes and insurance costs compared to other major Canadian cities.
The Bank of Canada’s recent rate cut to 2.5% has also added momentum to Calgary’s market. Lower borrowing costs mean stronger cash flow potential and better refinancing options for investors.
However, there’s nuance here. The city’s construction boom has created more supply, which means some investors may face slightly longer lease-up times or slower rent growth in the short term. That said, Calgary’s long-term fundamentals — job creation, population growth, and affordability — remain strong.
The Most Effective Real Estate Investment Strategies in Calgary
There’s no single “best” way to invest in Calgary real estate, but several approaches stand out.
Buy and Hold Rentals
This classic strategy continues to perform well in Calgary. Investors purchase a property, rent it out long-term, and benefit from both rental income and appreciation. The city’s expanding job market and influx of newcomers make tenant demand steady across most suburban and infill communities. With a property manager, this approach is relatively hands-off and ideal for busy professionals seeking long-term wealth building.
Value-Add Properties
Older homes or suited bungalows in established areas can offer great potential. By renovating kitchens, upgrading bathrooms, or modernizing suites, investors can raise rents and property value at the same time. These projects require more effort up front, but they can deliver higher equity growth over time.
The BRRRR Method
Buy, Renovate, Rent, Refinance, Repeat — the BRRRR model has gained popularity in Calgary as a way to scale faster. After improvements and stabilization, investors can refinance based on the property’s new appraised value. This strategy can work well when interest rates are low, but it’s important to use realistic appraisal assumptions and have a solid local financing team.
Short-Term Rentals
Certain areas near downtown, hospitals, or entertainment districts can do well with Airbnb-style rentals. However, Calgary has specific regulations and licensing requirements, so investors should check the city’s bylaws before diving in. Short-term rentals tend to be more management-intensive but can produce higher gross income if managed correctly.
Multi-Family and Purpose-Built Rentals
Calgary’s strong population growth is driving demand for modern, well-located rental units. Small apartment buildings and suited homes can provide consistent cash flow, especially when professionally managed. These investments often have lower turnover and can scale more efficiently for long-term investors.
What Returns to Expect — Short and Long Term
In the short term, investors should expect modest cash flow and potentially flat appreciation as the market digests new supply. Vacancy rates have ticked up slightly as new rental buildings come online, meaning rent growth may be slower for a year or two.
Over the long term, Calgary’s fundamentals point to healthy total returns. A combination of rental income, gradual appreciation, and mortgage paydown can deliver annualized returns of 6–10%, depending on leverage and management. Historically, Calgary has experienced stronger appreciation cycles following periods of construction oversupply — patient investors often benefit when demand catches up.
How Much Time and Effort Does It Take?
Real estate isn’t a “set it and forget it” investment — but Calgary offers options for every level of involvement.
If you prefer a passive approach, hiring a property manager can keep your involvement to just a few hours a month. They’ll handle advertising, tenant screening, repairs, and rent collection for about 8–10% of gross rent.
Self-managing landlords will spend more time — typically five to ten hours per month per property — handling maintenance and tenant issues directly. Investors pursuing renovations or BRRRR strategies should expect much higher time commitments up front, often equivalent to a part-time job during renovation and refinancing stages.
The good news? Calgary’s investor ecosystem is well-developed. Local property managers, mortgage brokers, contractors, and real estate agents experienced in investment properties make it easier to build a hands-off portfolio once you have the right team in place.
Calgary vs. Toronto and Vancouver
When compared to Canada’s two biggest housing markets, Calgary stands out for its affordability and cash flow potential.
Toronto’s average home price remains around $1 million, while Vancouver is even higher at roughly $1.25 million. These markets tend to offer low cash flow but are favored for long-term appreciation. Calgary, on the other hand, provides a more balanced entry point for investors who value immediate income and lower risk exposure.
Additionally, Calgary’s economy is less dependent on global capital flows and foreign buyers. While Toronto and Vancouver often rise and fall with international demand and speculation cycles, Calgary’s performance is tied more closely to domestic migration, local employment, and affordability — factors that remain favorable in 2025.
Liquidity can be slightly slower in Calgary during cooling phases, but the trade-off is stability and opportunity. Investors priced out of Ontario and B.C. are increasingly turning to Alberta to diversify their portfolios and boost returns.
Smart Steps Before You Invest
Before purchasing a property in Calgary, it’s worth doing some homework. Start by analyzing realistic rent and expense data, and run cash flow projections under different interest rate and vacancy scenarios. Check the zoning bylaws to confirm if secondary suites are allowed, and budget at least six months of expenses as a safety net.
Connecting with a local mortgage broker is also crucial — Alberta’s lending environment can differ from other provinces, especially for rental or BRRRR deals. A strong financing plan can make or break your investment.
Calgary real estate investing in 2025 is all about balance — affordability, opportunity, and a manageable level of risk. The city’s economy is diversifying beyond energy, its population continues to grow, and property values remain within reach for first-time and seasoned investors alike.
While short-term challenges like rising supply and slower rent growth may temper excitement, the long-term picture looks bright. With disciplined analysis, a strong local team, and a focus on steady cash flow, investors can position themselves for strong, sustainable returns in the years ahead.
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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