Once known for its affordability, Calgary is now experiencing a dramatic shift in its housing market. Economists agree that Calgary's housing market is currently the hottest in Canada, with vacancy rates at historic lows and rents projected to rival those of Toronto in the near future.

The Rise in Costs

From housing to energy, food, health care, and even furniture, the cost of living in Calgary has been steadily increasing. Inflation has affected all Canadians since 2019, with prices rising by double digits for nearly all essential goods. Over the past two years, inflation rates have remained higher than the typical two percent, suggesting a new, higher baseline for prices.

Housing Prices Soar

One of the clearest indicators of this change is the surge in home prices. According to the Canadian Real Estate Association (CREA), the seasonally adjusted benchmark price for homes in Calgary reached $652,541 in March 2023, up from $458,099 in March 2019. This represents a staggering 39% increase in just a few years, second only to Montreal's 43% rise.

Rental Market Tightens

The rental market is also feeling the heat. By late 2023, Calgary's rents were rapidly approaching Toronto's average rates. Over the past decade, rents in Calgary have increased by 40%. Rachel Battaglia, an economist at the Royal Bank of Canada, attributes this to significant population growth outpacing the availability of housing stock. This imbalance is evident in both the ownership and rental markets.

The Challenge for Renters and Buyers

For those entering the housing market in the past three years, the process has been challenging. Many Calgarians are familiar with the difficulties of finding affordable housing. The city remains a seller's market, characterized by bidding wars, multiple offers, and homes selling quickly and above their list prices.

Planning Your Move

If you're considering a move within Calgary or relocating to the city, it's essential to have a solid strategy. Get in touch with us, and we'll help you navigate this competitive market and develop an optimal plan to meet your housing goals.

Stay informed and prepared to make the best decisions in Calgary's dynamic housing landscape.