Prices in Calgary for residential rental properties have softened, with the latest data from Rentals.ca showing year-over-year rates for July rising just 1.9 per cent for one-bedroom apartments.

That percentage, the lowest year-over-year increase observed by the firm during their monthly reporting for the start of August, fell below the Canadian inflation rate of 2.67 per cent.

Giacomo Ladas, communications manager for Rentals.ca, said that the rent changes represented a market softening.

“With that said, rent has increased recently. I think you could say that the increase was relatively small,” Ladas said.

Changes in one-bedroom prices have risen since 2023. Prices from May 2023 to May 2024 saw an increase of $129 from $1,607 per month to $1,736, one of the largest year-over-year increases observed.

On average, changes since the start of the year have been more modest. The average one-bedroom rate for data collected in January of this year was $1,696 according to the report, versus $1,751 for July.

The average one-bedroom rental increase observed by the firm from July to August was $8. The firm calculates the figures monthly based on listings from Rentals.ca.

Ladas said that seasonality was a factor in the decrease in year-over-year percentages, as fewer renters change units heading into the winter months.

Another factor was changes from the Bank of Canada in interest rates, Ladas said.

The rate was decreased to 4.5 per cent from 4.75 per cent in July, which followed a decrease from five per cent in April. The rate was set to five per cent in July of 2023.

The Bank of Canada is set to make an interest rate announcement on Sept. 4.

“We see another decrease happening,” said Ladas.

What Calgarians should expect, at least in the short term, was lower increases in rental prices, he said.

Nationally, Calgary followed the overall trend seen in aggregate for rental rates but remained far lower than other markets in Alberta.

Other cities like Edmonton and Lloydminister have seen higher than average increases in year-over-year percentages, Ladas said, but actual rental rates remain below the national average.

The average rental growth rate seen by Rentals.ca was 5.9 per cent, the lowest the firm has seen in more than two years.

“As we move past the peak of summer, we’ve seen very little of the uplift typically expected with the warmer months,” said David Aizikov, Senior Analyst at Rentals.ca.