In March, the income needed to buy a home in Calgary increased by more than $2,000

With the rising real estate market, the cost of buying a home in Calgary has become unaffordable for many locals, and that is not expected to change anytime soon.

A new report from Ratehub.ca shows that home prices increased by $12,500 in one month (February to March 2024).

It goes without saying that with such dramatic price increases, homebuyers' incomes must also be maintained.

ratehub.ca

The report says that the income needed to buy a home in the city increased by $2,180 in one month.

Calgarians are not alone; The vast majority of Canadian cities have seen home prices skyrocket.

“While mortgage rates have remained relatively flat month-to-month, home prices have risen, leading to poor affordability,” said James Laird, CEO of Ratehub.ca and president of mortgage lender CanWise.

“The minimum annual income needed to buy a median home increased in 12 of the 13 cities we looked at as home prices rose.”

While Edmonton has often seen relatively affordable home prices, high demand seems to be making them unaffordable.

In that report, Edmonton's median home price was still significantly lower than Calgary's, at $567,900, $385,900 – $192,600 below Calgary's current level.

Despite the low cost, rapid growth will require Edmontonians to earn more to keep up with the $1,880 change in income needed to afford the exploding housing market.