Higher turnover rents in several major rental markets have decreased tenant mobility, leading to longer average tenancy periods and "more substantial" rent increases when tenants do move, says CMHC.

Canada's housing agency says advertised rents in some major cities are easing due to factors such as increased supply and slower immigration, but renters are still not feeling relief.

In its mid-year rental market update released Tuesday, Canada Mortgage and Housing Corp. said average asking rents for a two-bedroom purpose-built apartment were down year-over-year in four of seven markets.

Vancouver led the way with a 4.9 per cent decrease in the first quarter of 2025, followed by drops of 4.2 per cent in Halifax, 3.7 per cent in Toronto and 3.5 per cent in Calgary. Average asking rents grew 3.9 per cent in Edmonton, 2.1 per cent in Ottawa and two per cent in Montreal, compared with the first quarter of 2024.

Landlords reported that vacant units are taking longer to lease, CMHC said, especially for new purpose-built rental units in Toronto, Vancouver and Calgary, where they face competition from well-supplied secondary rentals such as condominium units and single-family homes.

"Purpose-built rental operators are responding to market conditions by offering incentives to new tenants such as one month of free rent, moving allowances and signing bonuses," the report said, adding some landlords anticipate they may need to lower rents over the next couple of years.

The agency said rents for occupied units are continuing to rise but at a slower pace than a year ago. It said higher turnover rents in several major rental markets have decreased tenant mobility, leading to longer average tenancy periods and "more substantial" rent increases when tenants do move.

In 2024, the gap in rental prices between vacant and occupied two-bedroom units reached 44 per cent in Toronto, the highest among major cities, while Edmonton had the smallest gap at roughly five per cent.

Vacancy rates are expected to rise in most major cities this year amid slower population growth and sluggish job markets, CMHC said.

"As demand struggles to keep pace with new supply, the market will remain in a period of adjustment. This is particularly true in Ontario due to lowered international migration targets, especially in areas near post-secondary institutions," the report stated.

"While the market may have abundant supply in the short-term, there is still a need to maintain momentum in new rental supply to meet the needs of projected future population growth and to achieve better affordability outcomes for existing households."

Despite downward pressure on rent prices, CMHC said affordability has still worsened over time as rent-to-income ratios have steadily risen since 2020, especially in regions like Vancouver and Toronto where turnover rents are driving increases.

A separate report released Tuesday outlined similar trends across the national rental market last month.

The latest monthly report from Rentals.ca and Urbanation said asking rents for all residential properties in Canada fell 2.7 per cent year-over-year in June to $2,125, marking the ninth consecutive month of annual rent decreases.

Despite the drop, average asking rents remained 11.9 per cent above levels from three years ago and 4.1 per cent higher than two years ago, "underscoring the long-term inflationary pressure in the rental market," the report said.

Purpose-built apartment asking rents fell 1.1 per cent from a year ago to an average of $2,098, while asking rents for condos dropped 4.9 per cent to $2,207. Rents within houses and town homes fell 6.6 per cent to $2,178.

“Rent decreases at the national level have been mild so far, with the biggest declines mainly seen in the largest and most expensive cities," Urbanation president Shaun Hildebrand said in a news release.

"However, it appears that the softening in rents has begun to spread throughout most parts of the country.”

B.C. and Alberta recorded the largest decreases in June, with asking rents falling 3.1 per cent year-over-year in each province to an average of $2,472 in B.C. and $1,741 in Alberta.

That was followed by Ontario's 2.3 per cent decrease to $2,329, Manitoba's 1.3 per cent decrease to $1,625 and Quebec's 0.9 per cent decrease to $1,960. Nova Scotia's average asking rent ticked 0.1 per cent lower to $2,268, while Saskatchewan was the only province to record year-over-year growth, at 4.2 per cent, to an average of $1,396.

This report by The Canadian Press was first published July 8, 2025.

Sammy Hudes, The Canadian Press

Inventory levels in June continued to rise, both over last month’s and last year’s levels. By the end of the month, inventory reached 6,941 units, returning to levels reported in 2021, or prior to the surge in population growth. While sales have remained consistent with long-term trends despite a decline from recent months, higher levels of new listings compared to sales have contributed to the inventory gain.

All property types have reported gains in inventory, but both row and apartment style homes reported inventory levels over 30 per cent higher than long-term trends, while supply for detached and semi-detached units are only slightly higher than typical levels.

“Supply has improved across rental, resale and new home markets, allowing for more choice for those considering their housing options,” said Ann-Marie Lurie, Chief Economist at CREB®. “The additional choice combined with no further declines in lending rates, persistent uncertainty and concerns of price adjustments is keeping many potential purchasers on the sidelines. This is weighing on home prices, especially for apartment and row style homes.”

The unadjusted benchmark price was $586,200 in June, lower than last month and over three per cent lower than last year. Much of the citywide decline was driven by apartment and row style homes, which are over three per cent lower than last year. Meanwhile, detached prices have remained relatively stable and semi-detached homes are still slightly higher than last year.

The steeper price declines for apartment and row style homes are reflective of those segments shifting toward a market that favours the buyer with nearly four months of supply. Meanwhile conditions are relatively balanced for detached and semi-detached homes. Overall conditions in Calgary have changed, but not enough to erase the significant growth in prices that have occurred over the past four years.
 

Detached

Sales in June were 1,194 units, six per cent lower than both last year and last month's activity. Sales activity did vary depending on location and price range, with declines in resale sales mostly for higher priced homes that likely face more competition from new homes. On a location basis, the steepest declines in sales occurred in the City Centre and the North East at over 20 per cent, while year-over-year gains were reported in the West, and South East districts. 
 
While sales did vary, inventories and new listings improved across most price ranges and districts in the city. However, it is only the North East district that is experiencing conditions that favour the buyer, causing prices to decline by four per cent compared to last June. As of June, the unadjusted benchmark price in Calgary was $764,300, less than one per cent lower than both last month and last year’s price.

Semi-Detached

Sales activity continued to slow this month, contributing to the year-to-date decline of nearly 12 per cent. At the same time new listings have generally been rising compared to last year, supporting inventory gains and a shift to balanced conditions. As of June, the months of supply was 2.6 months, a significant improvement over the tight conditions reported last year.
 
Additional supply choice has slowed the pace of price growth for semi-detached homes. As of June, the benchmark price in the city was $696,400, similar to last month, and over one per cent higher than last June. Price movements did range by district, as homes in the City Centre are over three per cent higher than last year and at record high levels, while prices in the North, North East, and East districts are all over two per cent lower than last year and three per cent lower than last year’s peak price.

Row

New listings continue to rise relative to the number of sales in the market, as the sales-to-new listings ratio in June dropped to 50 percent. This contributed to further inventory gains with 1,167 units available at the end of the month. While sales are still higher than long-term trends, the recent gains in inventory levels have caused the months of supply to push above three months. Within the city, conditions range with nearly six months of supply in the North East and two and a half months of supply in the North West.
 
Higher supply levels relative to demand are weighing on prices which, at a June benchmark price of $450,300, are down over last month and three per cent lower than last year’s levels. However, as the level of oversupply does range across the districts, so too do the price movements. The City Centre has seen the most stability in prices this month and is only one per cent below last year’s peak. Meanwhile, the North East is reporting year-over-year price declines of nearly six per cent.
 

Apartment Condominium

June new listings and sales both eased over last month’s and last year’s levels. However, with 1,024 new listings and 532 sales, inventories continued to rise and the months of supply pushed up to nearly four months. Slower international migration numbers are weighing on housing demand just as supply levels are rising, which is having a larger impact on apartment style homes.
 
The rising supply choice, both in new and resale markets, has caused resale prices to trend down again this month, leaving June’s benchmark price of $333,500 over three per cent lower than last year’s levels. While prices have eased across all districts in the city, the largest year-over-year declines are occurring in the North East, North and South East districts.
 

REGIONAL MARKET FACTS

Airdrie

Thanks to a sharp decline in detached activity, sales in June fell to 164 units. The pullback in sales was met with 324 new listings, causing the sales-to-new listings ratio to drop to 51 per cent, the lowest ratio reported in June since 2018. The wider spread between sales and new listings drove further inventory gains and for the first time since 2020 the months of supply was above three months. The additional supply choice has weighed on resale prices, which have trended down for the second consecutive month. In June the benchmark price was $538,300, nearly three per cent lower than levels seen last year at this time.

Cochrane

Gains for detached and semi-detached sales were offset by pullbacks for row and apartment units, as June sales remained relatively unchanged over last year. The 101 sales in June were met with 171 new listings and the sales-to-new listings ratio rose to 59 per cent. This slowed the pace of inventory growth, keeping the months of supply just below three months. While conditions are more balanced than they have been, prices in the area continue to rise albeit at a slower pace. As of June, the unadjusted benchmark price was $593,700, nearly one per cent higher than last month and four per cent higher than last June.

Okotoks

While levels are better than last year, both sales and new listings trended down in June, causing the sales-to-new listings ratio to rise to 87 per cent. This prevented any further monthly inventory gains and ensured that the months of supply remained below two months in June. While conditions remain tight in Okotoks, more supply in the broader region has likely prevented stronger price growth in the Town of Okotoks. As of June, the unadjusted benchmark price was $632,800, similar to last month and nearly three per cent higher than last year.

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Seton remains one of Calgary’s fastest-growing urban districts, offering a vibrant mix of housing, retail, healthcare, and education. In Q2 2025, Seton experienced softening sales and rising inventory — a pattern seen across many SE communities — especially within the apartment market.

• Total Sales: 52 units (▼17% YoY)

• New Listings: 117 (▼2% YoY)

• Total Inventory: 91 units (↑42% YoY)

• Benchmark Residential Price (June): $377,467 (▼3.2% YoY)

• Months of Supply: 2.63 (↑71% YoY)

🏠 Performance by Property Type

🔹 Apartments (Majority of Sales)

• Sales: 49 units (↓15%)

• New Listings: 111 (↓2%)

• Benchmark Price: $377,467 (↓3.2% YoY)

• Market Trend: Seton’s apartment-heavy market is cooling. High supply and affordability continue to attract first-time buyers and investors, but price pressures remain downward due to oversupply.

🔹 Row/Townhomes

• Sales: 3 units (low sample size)

• Benchmark Price: Not statistically reliable due to volume

• Trend: Limited product available in this category, but ongoing development may expand townhome offerings by 2026.

🔹 Detached & Semi-Detached

• Not applicable for Q2 2025 – no recorded benchmark or sales activity for these property types in Seton. Most detached homes in the area are still under development or pre-construction.

⏱️ Days on Market (DOM)

While specific DOM values are not individually broken out in the dataset, Seton’s months of supply rose 71% to 2.63 months, indicating longer time on market. Buyers have more selection and leverage, particularly in the apartment segment, where competition among sellers is increasing.

🧑‍🎓 Schools in Seton

Seton is positioned as an education and health hub in Calgary’s southeast. Nearby and serving Seton residents:

• Joane Cardinal-Schubert High School (CBE) – Full high school program; modern facility.

• All Saints High School (Catholic) – Located nearby in Legacy.

• Elementary and middle school students are served by neighboring communities such as Auburn Bay, Mahogany, and Cranston until future Seton schools are completed.

📌 Future School Sites: Designated locations for new K–9 schools have been approved in Seton’s long-term plan to accommodate future growth.

🏙️ Seton is Calgary’s urban core of the south, offering one of the city’s most integrated live-work-play environments.

🏗️ Urban Planning & Growth

• Mixed-use high-density zoning attracts both residential and commercial investment

• New apartment and condo developments continue to expand along Seton Blvd and Market Street

• Additional park space and pedestrian linkages under development in 2025

🏥 Amenities

• South Health Campus Hospital – Full-service medical care and employment anchor

• Seton YMCA – Calgary’s largest recreational facility with swimming pools, fitness center, library, and skating rink

• Cineplex VIP Theatre, Superstore, Shoppers Drug Mart, banks, clinics, and dining all within walking distance

📈 Market Outlook

✅ For Buyers:

• Apartments remain highly affordable and offer exceptional walkability

• Ample inventory and longer DOM provide room to negotiate

• Strong rental demand in Seton makes it attractive for investors

✅ For Sellers:

• Price sensitivity is increasing; units must be competitively priced and marketed

• Staging, professional photography, and highlighting Seton’s lifestyle perks are essential to stand out

• The oversupply of condos in similar price brackets requires strategic positioning

Q2 2025 marks a cooling phase in Seton’s real estate market, particularly in its apartment sector. While sales declined and inventory grew, Seton continues to hold long-term value due to:

• Its position as Calgary’s SE urban center

• Access to world-class health, recreation, and retail amenities

• Ongoing infrastructure and residential development

Buyers should act carefully but confidently, while sellers will need to align expectations with market realities.

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📊 Market Overview – Auburn Bay

Auburn Bay entered a transitional phase in Q2 2025, with growing inventory, softer sales volume, and price adjustments across most property types. Although the community remains popular for families, the shift toward a balanced-to-buyer's market created new dynamics for sellers and buyers alike.

• Total Sales (Q2): 127 units (↓28% YoY)

• New Listings: 238 (↑22% YoY)

• Inventory Level (End of Q2): 113 units (↑95% YoY)

• Quarterly Benchmark Price (June): $621,467 (↓4.2% YoY)

• Quarterly Average Days on Market (DOM): ~25–34 days (↑8–12 days YoY)

• Months of Supply: 2.67 months (↑168% YoY)

🏠 Market Performance by Property Type

🔹 Detached Homes

• Total Sales: 54 homes (↓33%)

• New Listings: 117 (↑15%)

• Benchmark Price (June): $801,633 (↓2.2% YoY)

• Average DOM: 32 days

• Trend: While detached homes remain desirable, the inventory surge softened prices. Sellers face longer selling timelines unless priced competitively.

🔹 Semi-Detached Homes (Duplex)

• Total Sales: 13 homes (↓24%)

• Benchmark Price: $524,433 (↓1.1%)

• Average DOM: 28 days

• Trend: This segment shows moderate stability but slower absorption rates as buyer caution increases.

🔹 Row Homes (Townhouses)

• Total Sales: 33 homes (↑10%)

• Benchmark Price: $470,133 (↔ YoY)

• Average DOM: 24 days

• Trend: A bright spot in the market — row homes are seeing solid buyer activity due to affordability and modern layouts.

🔹 Apartments

• Total Sales: 27 homes (↓41%)

• Benchmark Price: $359,400 (↓6.3%)

• New Listings: 61 (↑72%)

• Average DOM: 34 days

• Trend: High inventory and weak sales volume place downward pressure on prices. Great value for investors or first-time buyers.

⏱️ Days on Market (DOM) Trend

Across Q2 2025, DOM rose across all property types:

• Detached homes: From 24 to 32 days

• Apartments: From 26 to 34 days

• Row homes: Averaging 24 days but beginning to lengthen

This aligns with increased months of supply and softening sales-to-listing ratios — reflecting a more cautious buyer pool.

🧑‍🎓 Schools in Auburn Bay

Auburn Bay continues to be a highly desirable location for families due to its proximity to schools:

• Auburn Bay School (K–4, CBE)

• Lakeshore School (Grades 5–9, CBE) – Serves growing middle school population

• Prince of Peace School (K–9, Catholic) – Popular for Catholic families

• Joane Cardinal-Schubert High School – Located in adjacent Seton

Most schools remain well-ranked and accessible via walking or short drive, supporting Auburn Bay’s family-first reputation.

🌟 Community Features & Lifestyle

🏞️ Features:

• 43-acre private lake with beaches, swimming, skating, and boating

• Auburn House: Community center, gym, event rental space

• Off-leash dog park, tennis courts, and recreational fields

• Extensive bike paths and parks throughout the neighborhood

🛍️ Nearby Amenities:

• Seton Urban District with:

  • South Health Campus hospital

  • Calgary’s largest YMCA

  • Cineplex, Superstore, and dining options

📈 Market Outlook

✅ For Buyers:

• More selection and leverage, particularly in apartments and detached segments

• Opportunities to negotiate price or add conditions

• Townhomes remain competitive — act quickly if priced fairly

✅ For Sellers:

• Prepare for longer DOM and increased competition

• Homes in excellent condition, priced to market, are still moving

• Professional marketing, staging, and proper pricing are essential in Q3

In Q2 2025, Auburn Bay transitioned toward a more balanced real estate market with:

• Declining sales volumes

• Elevated inventory

• Extended selling timelines

That said, demand for townhomes remains healthy, and the community continues to thrive due to its lake lifestyle, school network, and walkable amenities. Both buyers and sellers must approach Q3 strategically to succeed.

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