Supply is starting to catch up with demand in Edmonton's rental market, says the city's Q4 2025 economic update, which city council is to receive on March 17. The update draws on data from the Canada Mortgage and Housing Corporation's 2025 Rental Market Report, which found that the purpose-built rental vacancy rate rose from 3% in October 2024 to 3.8% in October 2025. Rental starts hit record highs in Edmonton in 2025, mirroring national trends.
Meanwhile, the Q4 report says, Edmonton's population grew by 3.4% between 2024 and 2025, which is still high compared to other Canadian cities, but slower than the annualized growth seen in 2023 and 2024. The January national rent report from Rentals.ca indicates rent in Edmonton is down year-over-year, with an average of $1,590, significantly below the national average of $2,030. As for housing in general, economists speaking at BILD Edmonton Metro's 2026 economic forecast dinner said Alberta's residential housing market is shifting to more normalized levels after back-to-back record years. Edmonton saw 21,337 housing starts in 2025, up 16% from the previous year, but slowing population growth is expected to moderate demand in the second half of 2026.
We may see even more rental housing this year, particularly downtown. Applications were oversubscribed and are now closed for the Downtown Student Housing Incentive, which leverages CMHC funding. Plus, council is scheduled to vote on a Downtown Attainable Housing Incentive on March 17. The new incentive, which executive committee recommended approving earlier this month, is expected to fund between 570 and 850 units with rents fixed at 30% of Edmonton's median renter income.