They Just Keep Coming!
Calgary Real Estate and Rental Market Update
October 1, 2023 - Written by Jamie Palmer, President/Broker of Power Properties
Canada’s population is growing at rates not seen since the baby boomers in the early 1950s’, and Alberta is the fastest-growing province in Canada right now. 52,000 more people moved to Alberta than left this past year, with a majority of those coming to Calgary. 52,000 people is almost a new Airdrie a year!
All of this population growth is of course putting an enormous strain on housing and the rental market in particular. Many neighbourhoods have 0% vacancy. As always, the most affordable properties see the highest demand, but we are still seeing strong demand in the $2000-$2900 range. To qualify for properties over $3,000/month requires a before-tax income of $100,000/year, only 11% of individual Canadians earn that much and only 14% of Canadian households earn more than $100,000/year. So while we do see demand for high-priced properties, fewer applicants can actually qualify for the properties.
Real estate sales remain robust in spite of increased interest rates, with a 31% increase in the number of properties sold in the last 12 months, while at the same time a 25% decrease in the number of active listings in Calgary year over year. This has led to continued price increases with the median price up 10% year over year. Due to low levels of inventory, this upward trend is expected to continue into 2024.