Cap rates by city / Calgary
Calgary cap rates in 2026
Apartment buildings in Calgary traded at cap rates of 4.5% to 5.5% in CBRE's second-quarter 2026 survey, 7th lowest of the 13 Canadian cities CBRE surveys. Here is what sits behind that number, what CMHC says about vacancy and rents, and what a building is worth at the local yield.
Apartment cap rate
4.5% to 5.5%
CBRE, Q2 2026, Class A to B
Vacancy rate
5%
CMHC, October 2025
Average two-bedroom rent
$1,914
CMHC purpose-built, October 2025
Rent growth, 2025
Flat
CMHC: not different from zero
Run a Calgary building through the calculator
Preloaded with a six-unit building at Calgary's CMHC average two-bedroom rent, the city's vacancy rate, and generic expense assumptions ($1,800 tax and $600 insurance per unit, 8% maintenance, 5% management, $900 utilities per unit). The price is set so the building lands at the middle of the local range. Replace every number with your own.
Property & income
What you would actually pay, not the assessment
All units combined
Operating expenses (annual)
Of gross rent; 5–10% is typical
0 if self-managed
Condo fees, snow, lawn care
Your market
What similar properties trade at in this market
Cap rate
5.00%
$93,203 NOI on $1,864,000
Cap rate deliberately ignores financing: it is NOI divided by price, so you can compare properties regardless of how each buyer pays. The implied value inverts it: the price at which this NOI would hit your target cap rate. Useful as a negotiating anchor.
What the same building is worth across the range
The six-unit example above produces $93,203 of net operating income a year. Value is NOI divided by cap rate, so a half-point move in the market's cap rate changes the price by more than most renovations would:
| Cap rate | Building value |
|---|---|
| 4.5%low end | $2,071,168 |
| 5%middle | $1,864,051 |
| 5.5%high end | $1,694,592 |
Per unit: $345,195 at the low end to $282,432 at the high end.
Why Calgary trades where it does
Calgary drew heavy investment capital in 2023 and 2024 because it combined the fastest population growth in the country with no rent control, so buyers could underwrite rents rising to market every year. Cap rates compressed toward 4.5% for new product as a result, with older stock still available at 5.5%.
Vacancy, rents and the 2026 outlook
The story turned in 2025. Vacancy jumped to 5% in October 2025, the highest of the 13 cities, as a record wave of purpose-built completions met slowing in-migration, and CMHC's two-bedroom rent change was not statistically different from zero. Landlords are offering incentives on new leases. The absence of rent control cuts both ways: rents can fall as fast as they rose. Underwrite flat to slightly negative rent for 2026 and 5% to 7% vacancy on lease-up.
Rent rules in Alberta
Alberta has no rent control. A landlord can raise rent once every 12 months by any amount with three months' written notice on a periodic tenancy. That rule sets how fast in-place income can grow, which is why two buildings with identical rent rolls can trade at different cap rates depending on how far below market their tenants sit.
Cap rate against your mortgage rate
At a 5% cap rate, a mortgage costing more than 5% makes leverage work against you: every borrowed dollar earns less than it costs until rents grow. In Calgary that is roughly a wash at 2026 mortgage rates, so cash flow depends on the down payment and how far below market the rents sit. Put the same building through our rental property calculator to see the cash flow with the Canadian semi-annual mortgage formula.
Frequently asked questions
What is the average cap rate in Calgary?+
4.5% to 5.5% for apartment buildings in CBRE's Q2 2026 survey, with new concrete product at the low end and 1970s walk-ups at the high end. Single condos rented by individual investors typically produce 4% to 5% because Calgary prices are low relative to rents.
Why did Calgary vacancy rise so much in 2025?+
Supply. Calgary completed a record number of purpose-built rental units in 2024 and 2025 just as interprovincial migration slowed from its 2023 peak. CMHC's October 2025 survey put vacancy at 5%, up from under 2% two years earlier, and two-bedroom rents stopped growing.
Is no rent control good for Calgary investors?+
In a rising market it let owners reset rents every year, which is why capital flooded in. In 2025 and 2026 it means rents can drop with vacancy, and there is no guideline to anchor increases. Price the flexibility as volatility, not a free option.
How Calgary compares
| City | Cap rate | Vacancy |
|---|---|---|
| Vancouver | 3.5% to 4.75% | 3.7% |
| Toronto | 3.85% to 5.15% | 3% |
| Montreal | 4.25% to 4.75% | 2.9% |
| Victoria | 4.25% to 5% | 3.3% |
| Winnipeg | 4.5% to 5.25% | 2.8% |
| London | 4% to 6% | 4% |
| Calgary | 4.5% to 5.5% | 5% |
| Halifax | 4.5% to 5.5% | 2.7% |
| Quebec City | 4.25% to 6% | 2.4% |
| Edmonton | 4.5% to 5.75% | 3.8% |
| Ottawa | 4.5% to 5.8% | 3% |
| Kitchener-Waterloo | 4.5% to 6% | 4.1% |
| Saskatoon | 5.25% to 6.75% | 3.3% |
Sources: CBRE Canadian Cap Rates & Investment Insights, Q2 2026 (cap rate summary, high-rise and low-rise Class A to B); CMHC Rental Market Report, October 2025 survey. Survey ranges describe stabilized, professionally managed buildings; individual sales print outside them. Measure your own deal with the cap rate calculator.