BC, Ontario residents find Calgary's housing market a 'joy'

There may not be a one-size-fits-all answer to rising prices and dwindling inventory in Calgary's housing market, but migration can be a big contributor.

In Re/Max Canada's 2024 tax report, the real estate company noted an increase in homebuying activity in the city, largely due to lower affordable housing costs and lower tax rates.

This trend has encouraged more people, mainly from BC and Ontario, to move to Alberta.

Real estate experts and economists attribute this to rising home prices in Calgary. However, this may not result in the costs seen in other large cities.

“We have continued growth,” Darryl Terrio with Re/Max Complete Realty told Daily Hive Urbanized.

“Prices are going up, but they're not stupid. There were some really crazy runs in Toronto and Vancouver.”

In the first three quarters of 2023, Alberta saw about 45,000 new residents, Statistics Canada data shows.

During the same period, net international migration increased by nearly 100,000 people, including new immigrants, net emigration, and net non-permanent residents.

According to Re/Max, buyers from Ontario and BC are the most active in the Alberta housing market.

Most of them live in Calgary, where the median price at the end of 2023 was $539,313, according to the Calgary Real Estate Board (CREB).

“The title can be obtained for up to $350,000,” the Re/Max report said.

“Condominium category of apartments to see highest year-over-year sales growth in 2023.”

The report also says entry-level buyers, who make up 20% to 30% of the market, drive activity between $350,000 and $650,000.

However, inventories are expected to remain low this year. Migration trends are expected to slow, but this may not have a significant impact on the market.

“We're bringing more people into Canada than we can afford to build… But as more people come to Calgary, we're going to have a hard time maintaining the building,” Terrio said.

“There's plenty of room to be available.”