Thinking of investing in real estate? Here’s why Alberta might be the better play.
For years, Ontario has been the go-to destination for Canadian real estate investors, especially cities like Toronto, Ottawa, and Hamilton. But what if the better opportunity is out west? Alberta, with cities like Calgary and Edmonton, is quietly becoming the smart investor’s best-kept secret.
Here are 5 solid reasons why investing in Alberta multi-family real estate may yield better returns than Ontario — and why it might be time to broaden your investment horizons.
1. Higher Rental Yields = Better Cash Flow
In Alberta, you’re looking at rental returns in the 8–10% range, especially in growing submarkets of Calgary and Edmonton. Compare that with the Greater Toronto Area (GTA), where cap rates often struggle to reach even 4%. For the same capital outlay, your money simply works harder in Alberta.
2. No Rent Control: More Flexibility, More Profit
Ontario caps rent increases at 2.5% in 2024, which can severely limit your income potential, especially during inflationary periods. Alberta, on the other hand, has no rent control, giving landlords greater flexibility to adjust to market rates while still staying fair to tenants.
This doesn’t mean you raise rents irresponsibly, but it means you’re not penalized for operating a profitable and well-managed building.
3. Lower Operating Costs and Property Taxes
Alberta boasts lower property taxes and utility costs, which go a long way in reducing your operating expenses. Add in generally more affordable trades and services, and it’s clear: your monthly expenses are just lighter out west.
4. Less Competition, More Opportunities
Ontario markets are notoriously competitive, with bidding wars and razor-thin margins. Alberta, while growing fast, still offers less investor congestion. That means more breathing room, better deals, and less emotional overbidding.
You can still find underpriced 4-plexes or value-add apartment buildings in Edmonton or Calgary — something that’s rare in cities like Mississauga or Toronto proper.
5. A Pro-Business, Growth-Oriented Economy
Alberta’s economy is on the rebound, with a booming tech sector, strong energy base, and population growth driven by interprovincial migration. Add in no provincial sales tax, lower income tax rates, and an entrepreneur-friendly environment, and it’s easy to see why businesses and renters are flocking west.
Final Thought:
While Ontario has long been considered “safe” for real estate, Alberta’s numbers make a compelling case. If you’re after stronger cash flow, better cap rates, and a more landlord-friendly environment, Alberta’s multi-family market is well worth your attention.
