When most Canadian investors think of real estate, Ontario usually steals the spotlight. Toronto, Ottawa, and the GTA have long been seen as the “safe bets” for property appreciation. But in 2025, the tides are shifting. Alberta has quietly transformed into a multi-family investment hotspot, offering stronger cash flow, fewer restrictions, and a business environment that welcomes growth.
So why are more investors, both seasoned veterans and newcomers, looking west to Calgary and Edmonton? Here are five big reasons Alberta’s multi-family market is outpacing Ontario’s.
1. Higher Rental Yields and Cap Rates
Let’s talk returns.
In Ontario’s major cities like Toronto or Ottawa, cap rates typically hover around 3–4%, and in many cases, they dip even lower. That’s razor-thin when you factor in mortgage costs, insurance hikes, and rising taxes.
Compare that to Alberta:
- Calgary and Edmonton’s cap rates sit around 5–6%, comfortably higher.
- Rental ROI often falls in the 8–10% range, giving investors meaningful cash flow instead of just break-even numbers.
This isn’t just about percentages on paper. That spread means in Alberta, your income stretches further, your risk is cushioned, and your portfolio actually produces real, spendable returns today, not just speculative appreciation tomorrow.
For investors tired of negative cash flow in the GTA, Alberta feels like a breath of fresh air.
2. No Rent Control Caps
Ontario’s rental market is tightly regulated. For 2024, the maximum allowable rent increase was 2.5%, no matter how much your expenses climbed. If your property taxes went up 10%, or insurance premiums spiked, you had no way to adjust rents accordingly.
Alberta takes a different approach. While there are rules, like only one rent increase per year, with proper notice, there are no government-imposed caps on how much you can raise rent.
That means landlords can:
- Adjust rents to keep pace with inflation and market demand.
- Protect margins against rising operating costs.
- Stay competitive while still ensuring financial viability.
In practical terms, this gives investors control over their bottom line, something Ontario landlords often wish they had.
3. Lower Property Taxes and Operating Costs
Running a multi-family building in Ontario can feel like death by a thousand cuts. Between higher property taxes, escalating hydro bills, and maintenance fees, profits get whittled down quickly.
Alberta’s landscape is much friendlier:
- Property taxes in Calgary and Edmonton are consistently lower than in the GTA.
- Energy costs remain competitive thanks to Alberta’s abundant local supply.
- Fewer layers of bureaucracy mean less red tape, saving landlords both time and money.
The result? Buildings in Alberta are often cheaper to own and operate, which compounds your returns over the long term. Lower overhead isn’t just convenient, it’s a direct boost to profitability.
4. Less Competition, Better Entry Prices
Buying multi-family in Ontario can feel like fighting in an arena, crowded, cutthroat, and often overpriced. Local investors, international buyers, and large funds are all competing for the same limited stock, which inflates prices and kills cash flow.
Alberta offers a refreshing contrast. While investor interest is growing, the market still offers:
- 30–40% lower per-unit prices compared to Ontario.
- More inventory to choose from.
- Fewer bidding wars, meaning you can negotiate fair deals.
For the same budget you’d spend on a small building in Toronto, you might acquire a larger property or multiple assets in Alberta, instantly diversifying your portfolio. Lower barriers to entry make Alberta especially appealing to new investors who don’t want to risk it all on a single Ontario asset.
5. A Pro-Business, Growing Economy
Ontario is Canada’s financial hub, but Alberta is quickly becoming one of the most dynamic provinces for both business and lifestyle. Here’s why:
- No provincial sales tax (PST) and lower corporate tax rates create a friendlier environment for both businesses and residents.
- The province is diversifying beyond oil, with strong growth in tech, clean energy, logistics, and finance.
- Alberta is leading Canada in population growth, thanks to interprovincial migration and international newcomers seeking affordability and opportunity.
All of this translates into a steady, expanding pool of renters. Young professionals, families, and skilled workers are choosing Calgary and Edmonton as places to live, work, and grow, which means multi-family landlords benefit from long-term, stable demand.
Final Takeaway
Ontario may carry prestige, but Alberta is where investors are finding the next big wins. With higher rental yields, flexible rent rules, lower operating costs, accessible entry prices, and a booming economy, Alberta’s multi-family sector is outshining Ontario’s in 2025.
For smart investors, this isn’t just about east vs. west; it’s about choosing a market where your money works harder for you.
And right now, that market is Alberta.
