Calgary housing starts fall 20% as rental construction dominates local market
Construction shifts toward purpose-built rentals while detached-home sales slide, threatening future homeownership supply despite gains in affordability.
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Calgary's housing construction is slowing sharply, with starts projected to reach 23,000 units this year — down from 27,684 units in 2025 and a 20% decline from the previous year, according to the Canada Mortgage and Housing Corporation.
The slowdown masks a deeper shift in what gets built. Purpose-built rental homes now account for 60% of all housing starts, up from roughly a third in earlier years. That rental focus represents a 30% of the current construction decline — meaning the detached homes and condos Calgary renters and first-time buyers need are disappearing faster than the overall numbers suggest.
August sales tell the story. Apartment sales fell 26%, semi-detached homes dropped 18%, row houses slid 16%, and detached units fell 12%. The apartment inventory also tightened, declining 4%, while semi-detached inventory rose 5% — a sign builders are shifting away from ownership options entirely.
CMHC chief economist Taylor Pardy said the decline tracks slower population growth: Calgary's population grew 3.2% in 2025, down from 6.2% the previous year. "Population growth is going to normalize and increase again over the next year or so, just given some normalization in things like immigration policy, for example," Pardy told Postmedia.
The rental surge is bringing some relief to renters. Median rents have risen 44% since 2021, but the new supply has begun easing pressure — rents are stabilizing for the first time in years. Yet the affordability gains are fragile. The working poor in Calgary doubled in 2026, and CMHC warns Calgary barely meets the threshold to restore pre-pandemic affordability by 2036. The agency credits the city with almost halving its supply gap in the past year, but that progress depends on keeping ownership options viable.
Local realtor Jamil Thobani is seeing a shift in buyer motivation. "Last week or the week before, I was out showing a property to two sets of clients from Ontario, and they were pondering, 'Can I live in Calgary and bring down my costs?' As opposed to, 'I want to invest in Calgary and try and get the upswing because you know we see that homes are undervalued compared to where we're coming from.'" That shift — from speculative investors to families seeking affordability — is real. But it only works if homes for families remain available to build.
Why has rental construction become so dominant, and what changed in builder incentives or financing?
What happens to Calgary's path to affordability if homeownership supply keeps falling while demand from Ontario migrants rises?
We'll update this story as answers emerge.
The facts
How many housing starts is Calgary projected to have this year?
Calgary is projected to reach 23,000 housing starts in 2026, down from 27,684 units in 2025.
What share of Calgary's housing starts are purpose-built rentals?
Purpose-built rental homes now account for 60% of all housing starts in Calgary, up from roughly a third in earlier years.
How much did apartment sales fall in August?
Apartment sales in Calgary fell 26% in August, while detached units fell 12%, semi-detached homes dropped 18%, and row houses slid 16%.
How much have median rents risen in Calgary since 2021?
Median rents in Calgary have risen 44% since 2021, though new rental supply has begun stabilizing rents for the first time in years.
Ongoing coverage · Local Housing Market Shifts
