Are you thinking about buying a home in Alberta and can’t decide between Calgary and Edmonton? Both cities have their own unique real estate markets. In August, Edmonton’s average home price was about $398,000, while Calgary’s was $570,00012. Edmonton’s home prices have stayed stable, while Calgary’s have risen over 10% despite higher interest rates2.
The average price of a single-family home in Calgary is just under $700,000. In Edmonton, it’s around $500,000123. This big price difference is something to think about for buyers. Also, renting a two-bedroom apartment in Calgary costs about $2,150 a month, which is $500 more than in Edmonton1.
Population growth and migration have shaped the real estate markets in both cities. Alberta welcomed nearly 16,000 people from Canada and about 36,000 from abroad in the first quarter of 202312. This has affected demand and supply, making Calgary’s housing market tighter than Edmonton’s1.
Key Takeaways
- Average home prices in Calgary are significantly higher than in Edmonton
- Edmonton’s real estate market has remained stable with modest growth, while Calgary has seen sharper price increases
- Population growth and migration have impacted housing demand in both cities
- Calgary faces tighter housing supply compared to Edmonton
- Rent prices for a two-bedroom apartment are approximately $500 more in Calgary than in Edmonton
Introduction to Calgary and Edmonton Real Estate Markets
Calgary and Edmonton are the biggest cities in Alberta, Canada. They offer different real estate chances for buyers and investors. The calgary real estate market and edmonton real estate market have their own special traits. These traits come from things like the economy, population growth, and how affordable housing is.
Calgary is famous for its strong energy sector and lively downtown. Its housing market has grown a lot. By May 2024, Alberta’s home price hit $514,200, up 9.3% from the year before4. Calgary’s average home price went up 8% to $507,706 in a year. It was a seller’s market with a sales-to-new listings ratio of 71% in May4.
Edmonton is known for its diverse economy and rich arts and culture. By June 2024, Edmonton’s home prices fell slightly to $438,973 but still rose 6.5% yearly5. That month, Edmonton saw 2,847 home sales. Prices for different properties went up by 7.8% to 13% annually5.
“Both Calgary and Edmonton offer unique opportunities for homebuyers and investors, with their distinct economic drivers and cultural attractions shaping the local real estate markets.”
Looking into the calgary housing market 2024 and edmonton housing market 2024, we see what drives these markets. Calgary’s market is mainly pushed by the oil and gas sector. Edmonton’s market is boosted by its varied job market and strong public sector jobs.
When we compare calgary vs. edmonton real estate, both cities have seen steady growth. Edmonton’s market grew by 13% over five years, which is less than some other Canadian cities like Toronto and Vancouver5.
If you’re buying your first home, upgrading as a family, or looking to invest, knowing the Calgary and Edmonton real estate markets is key. We’ll look into the main parts of each market in the next sections. This will give you important insights to help you make smart choices in your real estate journey.
Calgary Real Estate Market Overview
The Calgary real estate market has seen big changes lately. Home prices, housing trends, and rental rates have all moved. As of June 2023, there are 4,267 homes for sale in Calgary, priced from $2.00 to $35,000,000.006. The average home price is $794,456, showing the wide range of housing options6.
Calgary is still a popular choice for buyers and investors. Its strong economy, beautiful nature, and quality of life make it appealing. Let’s look at some key aspects, including average home prices, housing trends, and the rental market.
Average Home Prices in Calgary
In May 2023, Calgary’s home prices hit $605,300, a 10% jump from last year7. Detached homes over $700,000 saw a 13% increase, reaching $761,8007. Semi-detached homes also rose by 13%, with a benchmark price of $678,0007.
Row homes and apartment condominiums are also on the rise. Row homes cost $462,500 in May, up 19% from last year. Apartment condominiums saw prices jump over 30% in some areas, like the North East and East7. This shows strong demand for different types of homes in Calgary.
Calgary Housing Market Trends
Calgary’s housing market has a tight supply lately. August saw a record low inventory, with just about a month’s supply6. This has pushed home prices up, but at a slower pace6.
Despite the tight supply, Calgary had 3,092 home sales in May, 34% above average7. New listings were up 19% from last year, but the sales-to-new listings ratio fell to 71%7. Most inventory gains were in homes over $700,0007.
Calgary Rental Market
Renting in Calgary? You should know the rental market well. The average rent for a two-bedroom apartment is $2,150 per month. This shows the strong demand for rentals, driven by population growth and lifestyle choices.
The rental market has been growing, with vacancy rates staying low. This trend is likely to continue, with more people choosing to rent. This means investors and property owners could see stable rental income and growth in value.
In conclusion, the Calgary real estate market is exciting for everyone. With many property types available, there’s something for everyone. Knowing about home prices, trends, and rentals helps make informed decisions in the Calgary market.
Edmonton Real Estate Market Overview
The Edmonton real estate market is growing steadily. Home prices are going up, and the rental market is strong. In June 2024, the average home price in Edmonton was $401,100, up 7.1% from the year before8. Single-family homes saw an 8.6% increase to $462,100, while townhouses and multiplexes went up 13.1% to $268,3008.
Average Home Prices in Edmonton
Edmonton’s housing market is strong, with condos seeing an 11.3% increase to $198,300 in June 20248. Even with some lag due to rate hikes, Edmonton’s home prices are still below the national average. They’re expected to bounce back when mortgage rates drop8.
Edmonton Housing Market Trends
In June 2024, Edmonton saw 2,847 home sales, a 9.7% increase from the year before. New listings rose by 0.5% to 3,7128. The sales-to-new-listings ratio of 77% shows a seller’s market, with a monthly and yearly increase of 3.0% and 9.1% respectively8.
Edmonton is set to become a seller’s market in 2024, with a 4% rise in home prices and a 5% drop in sales9. Single-detached homes will be in high demand, and first-time buyers will focus on condos under $200,0009.
Rising interest rates and migration from Ontario are key trends in Edmonton’s housing market this year9. This migration affects first-time buyers and competes with investors from Ontario and BC for affordable homes. Immigration also plays a big role, making Edmonton more affordable compared to other major cities9.
“The Edmonton real estate market is expected to accelerate past balanced territory with an increase in housing prices, making it an attractive option for both homebuyers and investors.”
The Edmonton market is set to move past balanced territory, with rising home prices. This makes it a great choice for buyers and investors8.
Factors Influencing the Real Estate Markets in Calgary and Edmonton
The real estate markets in Calgary and Edmonton are shaped by many factors. These factors affect the housing landscape, property prices, and market conditions. They make each city’s market unique.
Economic Drivers
Calgary and Edmonton’s economies greatly impact their real estate markets. Edmonton focuses more on government jobs, while Calgary is known for its corporate sector. The oil boom has led to high demand and rising prices in both cities10. These economic differences shape the property prices and trends in each city.
Population Growth and Migration
Population growth and migration affect housing demand in Calgary and Edmonton. In 2023, Alberta saw nearly 16,000 new Canadians and 36,000 new immigrants10. This influx means more people need homes. From 2016 to 2021, over 1.3 million immigrants came to Canada, the most ever10. This increases pressure on housing, impacting prices and availability in both cities.
Interest Rates and Affordability
Interest rates and affordability are key in shaping the real estate markets. Mortgage rates have been rising since 2020, making homes more expensive11. Edmonton’s market has been stable, with buyers focusing on condos and townhouses. Calgary’s homeownership costs are 39% of the median income, while Edmonton’s is 29%, showing affordability differences11. The stress test in 2016 aimed to prevent over-borrowing, slowing demand in high-demand markets10. Mortgage regulations can also affect the market, making it harder to buy homes and slowing price growth10.
Other factors like foreign capital and real estate investors also influence the market. Between 20 and 30 per cent of buyers in Alberta are investors11. Government policies on land use and zoning also affect prices, limiting supply and driving up prices10. These factors shape the real estate trends in Calgary and Edmonton, impacting property prices and market conditions.
Calgary vs. Edmonton: Real Estate Market Comparison
When looking at the real estate markets of Calgary and Edmonton, several key factors stand out. These include property prices, housing trends, and market dynamics. Both cities offer great opportunities for buyers and investors, but they have their differences.
Calgary leads with an average home price of about $490,134, while Edmonton’s is around $368,5761213. This price difference is seen across all types of homes, like detached, semi-detached, townhouses, and condos. In August, Edmonton’s average home selling price was about $398,000, while Calgary’s was $570,000.
Despite higher prices, Calgary is still a top choice for many. Its fame as a travel hub and closeness to the Rocky Mountains help. Broker Tom Shearer of Royal LePage Noralta Real Estate notes, “Calgary just does a better job of putting themselves on the radar.” Yet, Edmonton’s lower prices draw buyers who value affordability over location, as seen with Edmonton agent Leanna Martens and her clients.
Calgary has over 1.6 million people, a bit more than Edmonton’s 1.5 million12. The cities vary in their economic focus. Edmonton leans on government services, retail, and healthcare. Calgary thrives on oil and gas and hospitality12.
Edmonton is generally cheaper for rent than Calgary12. But, both cities have seen rent prices jump lately, with a 18% increase in purpose-built apartments and condos in the past year14. By March, Alberta’s average monthly rent hit $1,728, still under the Canadian average of $2,14314.
Despite rising prices and a tight housing market, both Calgary and Edmonton’s housing markets look bright. Alberta’s home sales are set to rise by 13.6% in 2023, with prices expected to go up by 7% in 2024 to nearly $480,00014. Calgary’s prices are forecasted to hit $717,000 by year’s end, up 8% from last year. Edmonton’s prices are expected to increase by 6.5% in 2024, reaching $458,00014.
Choosing between Calgary and Edmonton’s real estate markets depends on your personal needs, budget, and goals. By looking at each city’s unique traits and trends, you can make a choice that fits your life and dreams.
Housing Affordability in Calgary and Edmonton
When looking at Calgary and Edmonton’s real estate, housing affordability is key for buyers and investors. Both cities have different home prices and income-to-home price ratios that affect how affordable they are.
Median Home Prices Comparison
In Calgary, a detached single-family home costs about $640,000. Townhomes and rowhomes are lower, in the low $400s15. Edmonton’s single-family homes are around mid-$400s, with townhomes and rowhomes in the high $200s15. This shows Calgary’s homes are generally pricier than Edmonton’s15.
By 2023, Calgary’s home prices jumped from $501,577 to $551,420, showing a strong market with a 7.3% increase1615. Edmonton saw a 5.9% rise in prices, with the average home costing $385,334 in 20231615.
Income to Home Price Ratio
The income-to-home price ratio shows how affordable housing is by comparing household income to home prices. Calgary’s higher house prices and rents make it less affordable for some buyers15.
Edmonton, however, offers more affordable housing, making it a good choice for buyers15. Its lower home prices lead to a better income-to-home price ratio, making it more affordable for people.
| City | Median Home Price (Single-Family) | Median Home Price (Townhome/Rowhome) |
|---|---|---|
| Calgary | $640,000 | Low $400s |
| Edmonton | Mid $400s | High $200s |
Edmonton’s affordability attracts buyers, but Calgary’s lively city life and job market draw people too, despite higher prices15. Choosing between Calgary and Edmonton depends on personal needs, finances, and goals.
Investment Opportunities in Calgary and Edmonton Real Estate
Calgary and Edmonton are top cities for real estate investment in Alberta. They have strong economies, good housing markets, and are affordable. This makes them great for investors looking for growth and returns.
Calgary is linked to the oil and gas industry, a big part of its economy. This sector creates many jobs, especially in professional and managerial roles. Even with challenges, Alberta’s oil and gas jobs are back to 75% of 2014 levels, showing recovery17.
Edmonton has a more varied job market, with many public sector jobs. About 25% of Edmonton’s workers are in the public sector, offering stability17. It’s also focused on sustainability, which could increase housing demand.
Calgary has pricier homes, with a median price of about $596,000 for detached homes18. Edmonton is more affordable, with homes around $458,000 and townhomes in the $200s1718. This makes Edmonton a good choice for investors wanting lower costs and higher rental income.
Prices vary within each city. For instance, Northeast Calgary has cheaper three-bedroom units than Southeast Calgary or the City Centre17. This gives investors different options based on location and target tenants.
“Calgary and Edmonton both offer unique investment opportunities in the Alberta real estate market. While Calgary’s market is driven by the oil and gas industry, Edmonton’s diverse job market and affordability make it an attractive choice for investors seeking stability and potential for growth.”
Choosing between Calgary and Edmonton depends on your investment goals and risk level. Look at market trends, economic drivers, and prices to pick the best opportunities. This way, you can make smart choices for your investments.
Future Outlook for Calgary and Edmonton Housing Markets
Looking ahead to 2024, the housing markets in Calgary and Edmonton are set to see changes. Real estate experts are watching closely to spot trends and opportunities. They aim to understand how these will shape the market in the coming year.
Calgary Housing Market Forecast 2024
Calgary’s housing market is set to grow in 2024, with prices expected to hit $717,000 by year’s end. This marks an 8% increase from last year14. Homes in Calgary saw a price jump of 8.6% to $589,000 in June 202419. This rise is seen across different property types, including single-family homes, townhouses, and condos19.
Despite rising prices, Calgary saw a 13% drop in sales last year. Over 40% of homes sold for more than the asking price19. New listings fell by 3.6% to 3,798 in June 202419. The CREB reported a seller’s market with a sales-to-new-listings ratio of 72% in June 202419.
The rental market in Calgary is also growing, with rents up 4.0% to $2,092 in June 202419. Rent increases were seen across all apartment types, including bachelor, 1-bedroom, and 2-bedroom units19.
Edmonton Housing Market Forecast 2024
Edmonton’s housing market is expected to grow more slowly than Calgary’s in 2024. Prices are forecast to rise by 6.5% to $458,00014. This growth is less dramatic than Calgary’s.
As buyers look for more affordable options, Edmonton’s supply might get tighter. This could lead to a 2% price increase by late 2023. The Realtors Association of Edmonton predicts a steady market with moderate growth, unlike Calgary’s surge.
Alberta is set to see a 13.6% increase in home sales in 202414. House prices are expected to jump by 7% to nearly $480,000, beating the national average14. This growth is due to population growth, limited supply, and strong demand14.
| City | Projected Price Increase (2024) | Average House Price (2024) |
|---|---|---|
| Calgary | 8% | $717,000 |
| Edmonton | 6.5% | $458,000 |
As the housing markets in Calgary and Edmonton change, staying updated is key for real estate professionals and buyers. Understanding market trends and growth factors helps make informed decisions. This way, people can take advantage of the opportunities in both markets.
Tips for Buying or Investing in Calgary and Edmonton Real Estate
When looking into calgary real estate investment or edmonton real estate investment, a smart strategy is key. Whether you’re new to buying homes or you’ve done it before, knowing how to pick between Calgary and Edmonton takes careful thought and expert advice.
Working with Local Real Estate Agents
Choosing a skilled local real estate agent is a big step in doing well in Calgary or Edmonton real estate. People like Wally, with over 15 years of experience in Edmonton, can offer great advice. They know the best areas and properties for your goals and budget20. They understand the market trends, property values, and where growth might happen, helping you make smart choices.
Understanding Market Conditions and Timing
Knowing the market in Calgary and Edmonton is key to finding good deals. Calgary’s homes hit a record high of $557,500 in January 202420. With a tight supply and more people moving there, sellers might have the upper hand in 202420. Edmonton’s market is more balanced, offering buyers and investors more options21.
When to invest is also important. Look at price trends, economic factors, and population growth to pick the right time. For example, Calgary condos have seen an 8.08% increase in price over the year, making them a good choice for investors21.
Financing Options and Strategies
Looking at different financing options can help you make the most of Calgary real estate. For instance, condos and townhomes are often priced lower, making it easier to get into the market21. Affordable condos under $250,000 are popular with renters and are a good starting point for investors21.
When checking out properties, think about cap rate, cash-on-cash return, and internal rate of return (IRR) to see if it’s profitable21. Calgary’s real estate IRR is about 8.38%, which is a good chance for growth over time21.
Investing in real estate is not just about finding the right property; it’s about making informed decisions based on market conditions, financing strategies, and long-term goals.
With the help of local agents, understanding the market, and looking at different financing options, you can make smart moves in the Calgary vs. Edmonton real estate markets. This can lead to profitable investments in these booming Canadian cities.
Calgary vs. Edmonton: Which City Offers Better Real Estate Opportunities?
Calgary and Edmonton both offer great real estate chances for buyers and investors. Calgary is booming thanks to the oil and gas industry. This has led to a high demand for housing, making it a good time to invest22. The median house price in Calgary is about $490,134, which is higher than Edmonton’s $368,57612.
Edmonton, however, has more affordable housing, with prices around $410,00023. It’s a good choice for those on a budget. The city also has many job opportunities in various fields like government, retail, and healthcare12. Real estate investors can find redevelopment chances in Edmonton as the market grows22.
When looking at investing in Calgary or Edmonton, consider factors like population growth, economic stability, and rental market trends. Leduc, near Edmonton, has seen high population growth and offers family homes for about $325,0002223. Airdrie, near Calgary, has homes priced between $400,000 to $500,000, making it affordable23.
“Both Calgary and Edmonton offer exciting real estate investment chances. Each city has its own strengths and challenges. Buyers and investors should think about their goals, budget, and lifestyle when deciding between these two cities.”
Choosing between Calgary and Edmonton for real estate investment depends on personal preferences, financial goals, and how much risk you can take. Important factors to consider include:
- Economic stability and job market outlook
- Housing affordability and price trends
- Rental market conditions and potential returns
- Population growth and migration patterns
- Lifestyle preferences and amenities
Working with local real estate agents, analyzing market trends, and matching investment strategies with personal goals can help buyers and investors make the best choice between Calgary and Edmonton.
How New Homes Alberta Can Help You
Finding your way in the Calgary and Edmonton real estate markets can be tough. But, with Josh Clark at New Homes Alberta, you get expert advice. They know all about the local trends, neighborhoods, and where to invest. This means they can help you find the perfect home in Calgary, Edmonton, or nearby24.
Are you buying your first home, upgrading, or looking for a smart investment? New Homes Alberta offers services just for you. With Calgary’s homes averaging $552,273 and Edmonton’s at $412,334, there are great chances for buyers and investors24. Calgary’s homes have jumped 38% in five years, now at $572,300. Even with fewer sales, the average price keeps going up, hitting $623,245 in June 202425.
Josh Clark and his team at New Homes Alberta are here to help you with the Calgary and Edmonton markets. They use their knowledge and insights to help you achieve your real estate goals. Whether it’s finding your dream home or a smart investment, they’ve got you covered. Call Josh Clark at 403-305-9167 to begin your real estate journey in Calgary and Edmonton with New Homes Alberta.
FAQ
What are the average home prices in Calgary compared to Edmonton?
How do the rental markets compare between Calgary and Edmonton?
What are the main economic drivers in Calgary and Edmonton?
How is population growth and migration affecting the Calgary and Edmonton real estate markets?
What are the current housing market trends in Calgary and Edmonton?
How do median home prices compare between Calgary and Edmonton?
What are the future outlooks for the Calgary and Edmonton housing markets?
What are some tips for buying or investing in Calgary and Edmonton real estate?
Which city offers better real estate opportunities, Calgary or Edmonton?
Source Links
- Buying a house costs a lot less in Edmonton than Calgary. Why is that? | CBC News – https://www.cbc.ca/news/canada/edmonton/buying-a-house-costs-a-lot-less-in-edmonton-than-calgary-why-is-that-1.6973173
- Average selling price of homes in Edmonton less than Calgary – https://www.topedmontonrealestate.ca/average-selling-price-of-homes-in-edmonton
- Battle of Alberta: Why are Edmonton homes so much more affordable than Calgary’s? – https://www.theglobeandmail.com/real-estate/calgary-and-edmonton/article-battle-of-alberta-why-are-edmonton-homes-so-much-more-affordable-than/
- Alberta Housing Market: Jun. 27th, 2024 Update | Interactive Map – WOWA.ca – https://wowa.ca/alberta-housing-market
- Edmonton Housing Market Report: Jul. 8th, 2024 Update | Interactive Map – WOWA.ca – https://wowa.ca/edmonton-housing-market
- RE/MAX Real Estate Central – https://www.remaxcentral.ab.ca/calgary-real-estate-statistics.html
- Calgary Real Estate Board – CREB® – https://creastats.crea.ca/board/calg/
- Edmonton Housing Market | 2024 Home Prices – https://www.nesto.ca/mortgage-basics/edmonton-housing-market-outlook/
- Edmonton Housing Market Outlook (2024) – https://blog.remax.ca/edmonton-housing-market-outlook/
- Factors affecting real estate prices – https://www.questrade.com/questmortgage/learning/first-time-home-buyers/the-real-estate-cycle-and-property-value/factors-affecting-real-estate-prices
- Five Forces Driving Alberta Home Prices — Mortgage Sandbox – https://www.mortgagesandbox.com/five-forces-driving-alberta-real-estate
- Sterling Homes Edmonton – https://www.sterlingedmonton.com/blog/edmonton-versus-calgary-where-live-c2/
- Living in Calgary vs Edmonton (2023 Ultimate Guide) – https://www.repcalgaryhomes.ca/blog/living-in-calgary-vs-edmonton-where-should-you-move.html
- Varcoe: ‘A double-edged sword’ — Housing prices, sales across Alberta set to accelerate throughout 2024, lead country – https://calgaryherald.com/opinion/columnists/varcoe-alberta-hot-housing-market-2024
- Justin Havre Real Estate Team – https://www.justinhavre.com/blog/calgary-vs-edmonton-ab.html
- Home ownership in Edmonton ‘much more attainable’ than most major cities: CMHC – https://edmontonjournal.com/news/local-news/home-ownership-in-edmonton-much-more-attainable-than-most-major-cities-cmhc
- Calgary vs. Edmonton: Which City Should You Live In? – https://www.homesforsale.ca/blog/calgary-vs-edmonton-ab/
- Best Places to Invest in Alberta | Calgary Real Estate Agents – https://dolcerealestate.ca/albertas-real-estate-market-best-places-to-invest-in-alberta-in-2024/
- Calgary Housing Market | 2024 Home Prices – https://www.nesto.ca/mortgage-basics/calgary-housing-market-outlook/
- Best places to buy real estate in Calgary – MoneySense – https://www.moneysense.ca/spend/real-estate/where-to-buy-real-estate-in-canada-calgary/
- How to Evaluate the ROI on Calgary Investment Properties – https://newhomesalberta.ca/calgary-investment-properties/
- Alberta’s Property Hotspots: Where to Buy in 2024 – https://sourcemortgage.ca/albertas-property-hotspots-where-to-buy-in-2024/
- Alberta’s Hottest Real Estate Markets: Where to Invest in 2023 — Blog — Vesta Properties – https://www.vestaproperties.com/albertas-hottest-real-estate-markets-where-to-invest-in-2023/
- Why is Everyone Moving to Alberta? A Real Estate Perspective – https://blog.remax.ca/why-is-everyone-moving-to-alberta-a-real-estate-perspective/
- Comparing New Homes vs Resale Homes in Calgary: Pros and Cons – https://newhomesalberta.ca/new-homes-vs-resale-homes-in-calgary/
