Red Deer Ranks Among Canada’s Fastest Growing Rental Markets

Red Deer has emerged as one of the fastest growing rental markets in Canada, ranking sixth among small and mid-sized cities in terms of affordability. As of December 2023, the average rent for purpose-built and condominium apartments in Red Deer increased by 2.8 percent annually, placing the city 14th in the nation for rental growth. The monthly asking rent reached $1,427, up from $1,395 in November.

Several other cities in Alberta also made the list of rapidly growing rental markets. Lethbridge saw an increase of 3.6 percent, while Grande Prairie recorded a 3 percent rise and Lloydminster experienced a 1.8 percent growth in average rent. These figures are part of the latest National Rent Report released by Rentals.ca and Urbanation.

Rental Market Trends Across Alberta

In addition to Red Deer, five other Alberta communities ranked among the ten most affordable rental markets in the country last month. Lloydminster led with the lowest average rent at $1,214, followed by Fort McMurray at $1,275, and Medicine Hat at $1,355. Grande Prairie’s average rent was $1,408, and Lethbridge had an average of $1,525. Airdrie, St. Albert, and Sherwood Park also featured in the list of affordable cities.

Outside Alberta, Regina had the fifth lowest average rent at $1,416, while Saskatoon, Quebec City, and Côte Saint-Luc in Quebec also offered relatively low rental prices.

On a national scale, the average asking rents for purpose-built rental apartments saw a decline of 1 percent year-over-year, settling at $2,049. Overall, asking rents for all residential properties dropped 2.3 percent in December, marking the fifteenth consecutive month of declines. Despite this trend, rents remain 14.1 percent higher than pre-pandemic levels in December 2019.

Market Dynamics and Future Outlook

In Red Deer, the average rent for all residential properties reached $1,549 in December. This figure places it above the average rents in Lloydminster, Medicine Hat, and Fort McMurray, yet lower than rents in Lethbridge, Edmonton, Calgary, Airdrie, and others.

According to Shaun Hildebrand, president of Urbanation, the rental market dynamics are shifting. He noted, “After a sharp run-up coming out of COVID, rents in Canada have been on a downward trend for more than a year. The demand and supply factors that were pushing rents higher between 2022 and 2024 reversed during 2025. A combination of record-high apartment completions, population growth slowing down, economic uncertainty, and affordability challenges has worked together to push down rents.”

Looking ahead, Hildebrand anticipates that rental prices are likely to continue their downward trajectory as these conditions persist. Among Canada’s six largest rental markets, Vancouver experienced a sharp decline of 7.9 percent in rents, while Toronto and Calgary saw reductions of 5.1 percent and 5 percent respectively. Edmonton was the only major market to register rent growth, with an increase of 0.8 percent.

Provincially, average apartment rents have also declined year-over-year in British Columbia, Ontario, Alberta, and Quebec, with Saskatchewan leading the way in rental growth at 7.1 percent annually. As the rental landscape continues to evolve, cities like Red Deer remain noteworthy examples of both affordability and growth in a changing market.