Ownership Expected to Rise in Calgary Housing Market, With Rental Costs Comparable with Ownership
Affordability continues to be the hallmark of the Calgary housing market, with the city leading major Canadian markets in terms of home ownership, despite a decline in levels in the 15-year period between 2006 and 2021. According to Statistics Canada Census Data, 70.5 per cent of Calgarians owned their home in 2021, down from 74.1 in 2006.
While the average price in the Calgary housing market rose quickly between 2006 and 2014, the oil and gas downturn between 2014 and 2020 had a significant impact on housing values. As a result, values have risen just over 38 per cent over the 20-year period, from $357,142 to $492,642 according to the Calgary Real Estate Board (CREB).
In more recent years, however, the rebound from the oil and gas industry has catapulted housing values across the board. The province’s 2022 “Alberta is calling” campaign was met with unprecedented success as migration from B.C. and Ontario into Calgary and Edmonton soared, tightening inventory levels and putting upward pressure on housing values. Calgary welcomed more than 41,000 interprovincial migrants between July 2022 and July 2024, with its population climbing to almost 1.8 million. By year-end 2024, the average price for a residential property in the city rose to $697,079, up 23.3 per cent from 2021 levels.
“While Calgary still has issues with supply, migration into the city has tapered, giving homebuyers some much-needed breathing room in terms of decision-making. The economy continues to expand, driven by oil and gas and a burgeoning tech sector. Lower interest rates are prompting some first-time buyers to take the home-ownership plunge, although the stress test continues to be prohibitive, preventing some buyers from qualifying. Canada Mortgage and Housing Corporation is encouraging home ownership by extending mortgage insurance to the $1.5 million price point and allowing for a 30-year amortization period, showing the market is headed in the right direction.”
With rental costs comparable to owning in the Calgary housing market, ownership is expected to grow in the coming years. Just over 41 per cent of homes sold in Calgary in 2024 moved under the $500,000 price point, according to CREB. The downpayment continues to be an impediment, but parents and grandparents are stepping up to the plate, helping with a cash outlay that allows their kids to comfortably carry the monthly mortgage payments. Taxes are a non-issue in Calgary, given the city and province have no land transfer taxes, and overall taxes are significantly lower than in other provinces.
While some growing pains may inevitably be felt in fast-growing Calgary in coming years, the city remains well-positioned. Despite a slip in home-ownership rates in line with the national trend, home ownership within Calgary remains largely within reach of aspiring purchasers.
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