Edmonton rental market expected to subside as vacancies rise

A CMHC report forecasts Edmonton's rental vacancy rate will rise to 4.5% in 2026 from 3.8% in 2025, and says rising supply and slower population growth should ease competition for rental housing.

The Canadian Mortgage and Housing Corporation (CMHC) released a national housing report that projects easing conditions in Edmonton's rental market in 2026. The report links a rising rental supply and slower population growth to reduced competition for housing. CMHC estimates Edmonton's vacancy rate will be 4.5 per cent in 2026, up from 3.8 per cent in 2025. The analysis also highlights incentives for newer units and a rotation of tenants into those units. Key findings: - CMHC estimates Edmonton's rental vacancy rate at 4.5% in 2026, up from 3.8% in 2025. - The report attributes eased rental pressure to increased supply and slower population growth, which reduces competition for units. - Taylor Pardy, CMHC's lead economist for the Prairies and Territories, said incentives for newer units are appearing and are expected to be common through 2028. - Those incentives are encouraging some tenants to move into newer units, which can free older apartments for other renters. - CMHC expects housing starts to decline as unsold inventories build and builders pull back in response. - The Prairie region is noted for relatively steadier population growth, and the report mentions Alberta's trade and economic factors as offsetting elements. Summary: The report indicates a shift toward a more balanced rental market in Edmonton, with higher vacancy rates and more tenant choice easing pressure on landlords. Builders are expected to scale back starts as inventories rise, and incentives for newer units are likely to persist through the next several years, according to CMHC.