The rent vs buy conversation in Calgary is certainly not something "new" on the scene. Clients ask on a regular basis if we think it's a good time to buy or if they should keep renting. In the past 5 years in Calgary, we've seen reasonable vacancy rates and market rents have been affordable. Because of this, finding a great accommodation to rent hasn't been a difficult task in Calgary and lots of newcomers to the city have chosen to rent instead of buy. But, the question to ask is, "What is the best for your long term financial goals?"
Market Dynamics of Calgary's Housing Market in 2024
Overview: The Calgary housing market has shown healthy growth with rising prices across various property types. A slight decrease in new listings and sales compared to the previous year indicates a shift in market dynamics.
Key Points from December 2023 stats
- Detached Homes: Benchmark price was $697,400, a 13% year-over-year increase. Sales decreased by 3% year-over-year, with an inventory of 1.7 months.
- Semi-Detached Homes: Experienced a 12% year-over-year increase in benchmark prices, reaching $627,100. Sales rose by 33% compared to the previous year, with an inventory of 1.6 months.
- Townhouses: Saw a 20% year-over-year increase in benchmark prices to $425,100. Sales increased by 35%.
- Apartments: The benchmark prices increased by 19% year-over-year to $321,400, with a 28% increase in sales.
Population and Housing Demand
Calgary’s population growth, is averaging over 2.3% annually, and is a significant driver for housing demand, necessitating around 13,600 new dwellings per year! Top builders in our city are only able to create hundreds of housing units per year. The demand simply continues to exceed supply.
Economic Factors:
The Calgary housing market is influenced by the overall economic health of Alberta, including consumer spending and business activity. Despite some mixed signals in the labor market, the economy's overall strength is expected to maintain a low unemployment rate, supporting the housing market.
Summary: The Calgary housing market in 2024 shows a healthy and resilient growth pattern, with increasing property values across all segments. The market dynamics are influenced by population growth, economic factors, and the balance of supply and demand. While there is a slight decrease in sales and new listings, the market remains robust, with price increases indicating strong demand and looming interest rate decreases will further push prices upwards.
- Renting a Home in Calgary
- Equity Gained Buying a Home in Calgary
- Comparing Total Costs of Renting vs Owning
- Pros of Buying a home
- Pros of Renting a home
- Cons of Owning a Home
- Cons of Renting a Home
- Renting in Calgary vs Vancouver
- FINAL REMARKS
Renting a Home in Calgary
Equity Gained Buying a Home in Calgary
Comparing Total Costs of Renting vs Owning
Here's an interesting take - Back in 2020 this thread came up in r/personalfinancecanada a popular subreddit focused on stocks, financial advice, housing, and more titled ' buying a house vs renting an apartment in Calgary ' - 61 comments, the top voted comment echo's another users posts saying
Renting in Calgary vs Vancouver
Rent trends for apartments in Vancouver - According to the stats, rent in Vancouver is on the rise, in reviewing opportunities to rent apartments in Vancouver command prices upwards of $1,900 for one bedrooms, presently we are seeing homes (basement suites) renting for $2500 - $3,000 and homes renting for $3,000+ but typically in the $4,500 to $5,000 ranges.
Rent trends for apartments in Calgary - Calgary (presently) is a much different story, and while we don't anticipate Calgary prices to ever match Vancouver prices, it's a possibility, that in the future we'll see Calgary reach the levels that Vancouver is presently at, where average home prices are significantly higher than they are.
Renting vs buying Final remarks
The fact of the matter is, there really isn't a right answer for anyone. A lot of these choices come down to personal preferences, risk tolerance, and individual circumstances (being able to purchase, stability, plans to move, etc)
Whether you're a buyer considering the rental route vs buying route, or a seller deciding whether they should be selling vs holding onto a property, we believe it's important to have clear conversations that ultimately will allow you to know all of the avenues, possible outcomes, risks and exposures, and potential gains or benefits.
Posted by Cody Tritter on
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