As Edmonton establishes itself as one of Canada’s most attractive multi-family markets, Gaurav Sobti, Vice President of Financing at Peakhill Capital, breaks down the powerful trends driving this momentum and what they signal for the future ahead of the Edmonton Real Estate Forum.
Key Insights
- Strong Multi-Family Demand Despite Surging Supply: Edmonton experienced a nearly 60% year-over-year increase in multi-family housing deliveries in 2024, yet vacancy rates remained stable in early 2025, increasing by only 0.7% YoY.
- Rent Growth Outpaces National Trends: Rental prices in Edmonton rose 0.4% YoY in April 2025, while the national average declined by 2.8%. With an average rent of $1,628, well below the national average, Edmonton remains an affordable and attractive market.
- Favourable Long-Term Outlook Supported by Economic and Demographic Tailwinds: Edmonton’s growing appeal to tech and AI firms, attracted by Northern Alberta’s affordable land, combined with steady population growth, is expected to drive sustained demand for multi-family housing and support ongoing rent growth.
Factors Influencing Market Dynamics
As an emerging tech hub, Edmonton is set to benefit from the ongoing rise of AI, with data centers looking to take advantage of the comparably affordable development prices in Northern Alberta.1 Edmonton, the closest urban city, is expected to see an influx of incoming residents seeking new job opportunities, bolstering multi-family demand. As such, we expect investors to look towards Edmonton for new developments to capitalize on this incoming demand.
Despite the appeal of lower land costs, construction remains challenging for housing starts across Canada, which have been subjected to tariffs and overall market uncertainty, with Edmonton as no exception. As such, multi-family completions in Edmonton are projected to trend downward in 2025.1 Although increasing supply is crucial over the coming years, a stable inflow of new developments into the market will help to support long-term rental appreciation. As a result, we expect that current construction conditions, which have constrained supply, will help to attract investment interest and deliveries in the long-term.
Net Absorption Trends
Chart 1: Completions Compared to Vacancy Rates (2021 – 2025*)
Edmonton’s population has continued to trend upward2, putting pressure on developers to increase construction starts to meet new demand. In response, multi-family housing starts hit new highs, as new deliveries surged by nearly 60% YoY in 2024.1 Despite historic supply increases, Q1 2025 vacancy rates reported a minimal increase as compared to 2024 (Chart 1). Vacancy rates are not expected to soar by year-end in response to new supply,1 indicative of the strong demand for rental housing in Edmonton’s multi-family sector.
Rental Price Appreciation
As vacancy rates remain stable, rental prices have appreciated well ahead of the national average (Chart 2). Despite rising rents, Edmonton has remained an affordable option for Canadians as compared to other metro areas like Vancouver, Toronto, and Calgary.3 According to Rentals.ca’s April 2025 rental trends report, Edmonton’s monthly rent for all property types averaged at $1,628 per month, which falls below the national average of $2,119 (Chart 3). It is our belief that the projected rent growth, coupled with comparatively affordable rental prices, has created a favourable investment environment for new multi-family developments in Edmonton.
Chart 2: Percentage Change YoY in Average Rent* Compared to National Average
Source: Rentals.ca3, Peakhill Capital
Chart 3: Average Rental Prices* as Compared to Canadian National Average
Source: Rentals.ca3, Peakhill Capital
Market Outlook
Having lived in Edmonton for more than 10 years and raised my family here, I understand firsthand how amazing this city is and why more and more Canadians are looking to this city for housing opportunities.
Despite ever-changing market conditions and uncertainty set to become the word of the year, Edmonton has proved to be a resilient rental market. Demand continues to outpace supply, even with historically high housing starts in recent years, rental prices are forecasted to continue to grow. Additionally, land prices for multi-family developments, while still relatively affordable, have continued to appreciate, particularly in suburban areas. As such, we remain bullish on Edmonton’s rental market as it pertains to new opportunities in the multi-family sector!
Let’s continue the conversation
Footnotes
- Marcus & Millichap. (2025). Edmonton Metro Area: Multifamily Market Report 1Q 2025. ↩︎
- MacroTrends. (n.d.). Edmonton, Canada metro area population 1950–2025. Retrieved April 30, 2025, from https://www.macrotrends.net/global-metrics/cities/20373/edmonton/population. ↩︎
- Rentals.ca & Urbanation. (2025, April). April 2025 National Rent Report. Retrieved April 30, 2025, from https://rentals.ca/national-rent-report. ↩︎
