Calgary, a city in Alberta, Canada, is a treasure trove of opportunity for those considering buying a home. As Canada’s fourth most popular city, it boasts a vibrant culture and a diverse economy.

However, the real estate market operates within a complex framework influenced by various factors, including economic indicators and consumer sentiments. Against the rising borrowing costs and fluctuating housing prices, potential homebuyers in Calgary face a critical question: Is now the right time to invest in the city’s real estate landscape?

Let’s find out the factors that make Calgary an attractive prospect for real estate investment.

1. Record High Rental Prices

Calgary’s rental market has been steadily climbing, with rents increasing by 12.8% since last year, reaching an average price of $2,047.

As rental prices continue to rise, many tenants are reassessing their housing choices. This trend highlights the appeal of real estate investment and positions landlords favorably in a market ripe with rental opportunities. 

This means for those considering to find homes anywhere in Canada, investing in a house in Calgary at this time could serve as a safeguard for rising rental costs. 

2. Favorable Market Conditions

Calgary’s real estate market has seen steady growth, with property values appreciating consistently. The city’s economic strength, along with a notable increase in demand, has created a favorable environment for homebuyers. 

With options ranging from starter homes for first-time buyers to luxurious estates for those seeking upscale living, the housing market caters to diverse preferences. Whether you’re considering a single-family home, townhouses for sale Calgary, or a condo, the market dynamics are working in your favor.

3. Lower Cost of Living

Compared to other major Canadian cities like Toronto or Vancouver, Calgary boasts a relatively lower cost of living. This affordability extends to housing, making it a favorable time to enter the real estate market for those seeking financial stability without sacrificing lifestyle quality. In Calgary, you can get more value for your money when buying a home or renting an apartment.

4. World’s Most Livable City

Calgary’s renowned reputation as one of the world’s most livable cities makes it an attractive investment destination. Consistently high rankings on livability indexes highlight its quality of life, safety, healthcare, and education. These contribute to Calgary’s appeal as a desirable place to live, consequently increasing the potential of its rental market.

5. Long-Term Investment Potential

Real estate is a long-term investment, and Calgary’s housing market aligns with this principle. Despite occasional short-term fluctuations, Calgary’s real estate market has shown resilience and steady appreciation over time. 

Buying a home now not only provides you with a place to live but also allows you to build equity and wealth for the future. As Calgary evolves and grows, your investment has the potential to generate significant returns in the years ahead.

6. Booming Job Market

Calgary’s job market is robust, attracting professionals from various fields seeking lucrative employment opportunities. With a diverse economy that includes energy such as oil and gas, technology, healthcare, education, and finance, the city offers ample employment opportunities. By owning a home in Calgary, you not only establish stability but also position yourself to benefit from the city’s economic growth.

7. Abundance of Amenities

Calgary offers more than just work opportunities; it’s a city enriched with plenty of amenities. These include excellent public transportation systems, including light rail. Moreover, from world-class parks, well-equipped shopping malls, and cultural venues to outdoor adventures, residents relish in a high quality of life. Owning a house in Calgary means having easy access to these amenities, enhancing your overall living experience.

8. Limited Availability of Rental Apartments

The significant population growth in Alberta, particularly in Calgary, is a major driver of housing demand in the city’s real estate market. As a result, rental apartment availability has become limited, leading to stiff competition among prospective tenants.

In this case, firstly, owning a house provides you security and eliminates the uncertainty associated with rental housing. Plus, you’ll have the freedom to personalize your space and create a home that reflects your lifestyle. 

On the other side, this scarcity of rental apartments highlights the potential for property owners to capitalize on the prevailing demand-supply dynamics. Calgary’s vacancy rate has dropped to a two-decade low of 1.5%, signaling a tightening rental market. This positions them to command premium rental rates and maximize investment returns.

9. Strong Economic Fundamentals

Calgary’s economic foundation remains robust and diverse, supported by key sectors like energy, technology, and finance. Furthermore, the city boasts a high standard of living, excellent healthcare facilities, top-tier educational institutions, and abundant recreational options. 

With its diversified economy, steady employment opportunities, high living standards, and business-friendly atmosphere, Calgary emerges as an attractive investment destination. These strong fundamentals contribute to the resilience of the real estate market.

FAQ

1. Are Housing Prices Dropping in Calgary?

As of February 2024, the average selling price of a single-family home in Calgary has surged by 17.4% compared to the previous month, reflecting a robust upward trajectory in property values.

2. What Income Do You Need to Buy a House in Calgary?

Prospective homebuyers in Calgary must meet an annual income of $117,100 to achieve their dream of homeownership. While this figure remains aspirational for many, it’s essential to recognize that home prices have also surged.

3. How Much Down Payment Is Needed to Buy a House in Calgary?

The minimum down payment requirements are as follows:

• For homes priced at $500,000 or less: 5% of the purchase price.
• For homes priced between $500,000 and $999,999: 5% of the first $500,000 plus 10% for the portion above $500,000.
• For homes priced at $1 million or more: 20% of the purchase price.

4. What Is the Prediction for Calgary Real Estate in 2024?

The Calgary Real Estate Board predicts an overall 6.5% increase in prices across all property types in 2024. Detached homes are expected to rise by 4%, condos by 9.5%, and semi-detached and row houses by 5.5% and 9%, respectively.

5. What Are the Benefits for First-Time Homebuyers in Calgary?

First-time homebuyers in Calgary stand to benefit from an interest-free loan, facilitated by the Canada Mortgage and Housing Corporation (CMHC), covering a portion of the home’s purchase price, thereby easing the financial burden of homeownership.

6. When Is the Best Time to Buy a House in Calgary?

For optimal prospects in securing a desirable property at a favorable price point, prospective homebuyers in Calgary are advised to consider purchasing between April and June, while those seeking substantial discounts may find November and December to be opportune.

Conclusion

Buying a house in Calgary presents a wise investment opportunity. With favorable market conditions, a thriving job market, and a city brimming with amenities, Calgary offers a promising landscape for homeownership. 

As housing prices continue to rise, now may be the opportune moment for you to explore Calgary luxury real estate.

Whether you’re a first-time buyer or a seasoned investor, seize the opportunity to make your homeownership dreams a reality and be part of its growth story. Take a closer look, carefully evaluate the advantages and disadvantages, and contemplate making Calgary your home.