While Toronto and Vancouver investors face shrinking yields and strict rent caps, Calgary and surrounding towns are becoming the new frontier for rental investors. The reason? A combination of rapidly rising rents, population growth, and government-backed financing tools that tilt the balance in investors’ favor.
Population Boom Driving Demand
In 2023 alone, Alberta welcomed 202,000+ new residents. Calgary absorbed a large share of this surge, thanks to affordable housing, a vibrant economy, and lifestyle perks like sunshine and proximity to the Rockies. Most newcomers rent before they buy, and vacancy rates show the pressure: Calgary’s fell to 1.4%, one of the lowest in the country.
For investors, this translates into steady occupancy and growing rental demand across the city and nearby towns like Airdrie, Chestermere, and Okotoks.
New Builds as Rental Powerhouses
In markets with tight supply, new builds hold an advantage: they’re move-in ready, energy-efficient, and offer the modern conveniences today’s tenants want. From basement suites in suburban homes to purpose-built multi-family rentals, new builds attract higher-quality tenants willing to pay for value.
For example, a two-bedroom rental in a new community averages $2,000+ per month in Calgary, a figure that has grown steadily, outpacing most of Canada. With no rent control, landlords can adjust annually, keeping pace with the market.
Why CMHC MLI Select is a Game-Changer
Investors can supercharge their returns with CMHC’s MLI Select financing. By allowing:
- Up to 95% loan-to-value (LTV)
- Amortizations as long as 50 years
- Lower debt service requirements
MLI Select lowers the barrier to entry and boosts cash flow. For example, an investor could finance a 12-unit new build rental with a fraction of the down payment required by a conventional lender, while locking in long-term affordability and stable returns.
The Investor’s Edge
When you combine:
✔ Alberta’s booming population
✔ Rising rental demand and no rent caps
✔ New build appeal
✔ MLI Select financing
…you get one of the strongest rental investment environments in Canada.
For retirees, seniors, or those seeking stable income in uncertain times, new build rentals backed by MLI Select provide both security and growth potential. For younger investors, it’s a rare chance to scale portfolios with less upfront capital.
The Takeaway
New build rental investments in Calgary and its surrounding towns aren’t just about property; they’re about timing. With Alberta’s unique market fundamentals and CMHC’s supportive financing, investors can create steady income today and equity upside tomorrow.
