When it comes to the Canadian real estate market, the cities of Edmonton and Calgary often stand out for their economic opportunities, quality of life, and relative affordable housing options. However, as migration to Alberta continues to grow, the divide between the cities in terms of housing affordability grows further apart. In August, the average selling price of homes in Edmonton was about $398,000 compared to $570,000 in Calgary. Even average rent prices in Calgary are trending at about 23% higher than Edmonton.
Let’s take a look at a few of the reasons why there’s such a big difference between Alberta’s two biggest cities.
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Average selling price of homes in Edmonton and Calgary
Benchmark residential prices in Edmonton have remained relatively stable with modest growth compared to last year while they’ve jumped up more than 10% in Calgary despite higher interest rates.
The average price of a single-family detached home in Calgary is currently just under $700,000. Detached home prices in Edmonton are just under $500,000 on average.
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Strong migration into Alberta continues to drive the real estate market in both cities
In the first quarter of 2023, Alberta saw 16,000 people migrate from elsewhere in the country and another 36,000 people arriving from outside Canada. Whether they are buying or renting, all these newcomers need somewhere to live.
In terms of home sales, Calgary has reduced supply but high demand right now. In particular, prospective homebuyers who were priced out of markets in Canada’s largest cities, namely Toronto and Vancouver, generally prefer to settle in the larger of the two cities: Calgary. Proximity to the mountains is also a big draw.
However, with spiking prices in Calgary, many are looking to Edmonton where their money can go a lot further and where quality of life is just as good as Calgary (even if the mountains are a longer drive away).
As average selling prices of homes in Edmonton continue to demonstrate stability, buyers coming to Alberta may prefer to opt for a more balanced market where there’s more inventory to choose from.
Edmonton real estate market: Could Calgary’s affordability challenges drift north?
One of the key defining features of the Edmonton real estate market has largely been its stability. Whereas Calgary’s housing market is prone to steep ups and downs tied closely to the boom-and-bust cycle of oil and gas, the Edmonton market is known for consistent, reasonable growth.
And while that stability is expected to continue into the foreseeable future, market experts will be watching affordability trends in Calgary closely, as continued pressure in that market could have impacts on Edmonton. As prospective buyers turn their attention north for more affordable home prices, there could be additional pressure on supply which could drive prices up. As it stands currently, the average selling price of homes in Edmonton is expected to grow modestly by 2% by the end of 2023.
Agents are predicting a busier fall season compared to last year, with demand for housing in Edmonton continuing even as the busy summer real estate season comes to a close.
Are you planning a move to Alberta? With over 15 years experience in the Edmonton market, Wally can help you find the perfect home in the best neighbourhood.
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