Calgary has long been one of Canada’s most dynamic housing markets, characterized by its ties to the energy sector, a steady influx of residents, and unique demographic shifts. As the city grows and diversifies, understanding current housing trends and anticipating future developments is critical for potential buyers, investors, and sellers.

Current housing market trends

Here’s what I can tell you about recent housing trends in our city.

• Increased demand and tight inventory – Calgary has experienced a surge in housing demand in recent years. As of late 2024, the city continues to face inventory shortages in both single-family homes and condominiums. This imbalance between supply and demand has driven prices higher, particularly in more desirable neighbourhoods.
• Rising home prices – According to recent data from the Calgary Real Estate Board (CREB), the benchmark price for a home in Calgary increased by approximately 8% year-over-year in 2024. Detached homes remain the most sought-after property type, with prices significantly outpacing other categories. However, condominiums and townhouses have also seen price increases as buyers look for more affordable alternatives.
• Shift toward multi-family housing – With single-family homes becoming less attainable for many first-time buyers, multi-family housing options like condominiums and townhouses have gained popularity. Developers are responding by increasing the supply of high-density housing, particularly in transit-accessible areas.
• Sustainability and smart housing – Buyers are increasingly prioritizing features like solar panels, energy-efficient appliances, and smart home technology. This trend is consistent with broader societal shifts toward environmental consciousness and cost-saving measures.
• Rental market trends – Calgary’s rental market has tightened significantly, with vacancy rates dropping below 2% in 2024. A strong local economy and increased migration have driven demand for rental units, leading to rising rents. Opportunities are there for investors while renters seeking affordable options are challenged.

Projections for Calgary’s housing market

Let’s look at what to anticipate for 2025.

• Continued population growth – Calgary’s population is expected to grow further in 2025, due to ongoing immigration and interprovincial migration. The city’s strong job market, particularly in emerging sectors like technology and clean energy, will likely continue to attract newcomers. This will sustain a high demand for housing.
• Moderate price growth – Although home prices are projected to increase further in 2025, the rate of growth may slow down. The City of Calgary has been working on initiatives to boost housing supply, including incentivizing developers to build affordable units. These efforts may begin to yield results by 2025, easing some of the pressure on prices.
• Expansion of multi-family developments – The trend toward multi-family housing is expected to accelerate in 2025. Developers are expected to build more condominiums and townhouses to meet the demand for affordable housing options. Transit-oriented developments will remain a focal point, aligning with Calgary’s urban planning goals.
• Adoption of technology and innovation – Smart home technology and energy-efficient features will be more prominent by 2025. Builders and developers who incorporate these features will gain a competitive edge, particularly among younger, tech-savvy buyers.
• Rental market pressures – Calgary’s rental market will probably remain tight in 2025, with low vacancy rates and increased prices. This trend may prompt more renters to consider purchasing homes, further driving demand in the entry-level housing market.
• Challenges for affordability – Despite efforts to improve housing affordability, challenges will persist in 2025 due to rising construction costs, land scarcity in prime locations, and high demand. Government policies aimed at addressing these issues, such as zoning reforms and incentives for affordable housing projects, will play a critical role.

Key considerations

In 2025, first-time buyers may need to consider condominiums or properties in suburban areas to stay within budget. Investors should watch for opportunities in the rental market and emerging neighbourhoods with growth potential.

Policymakers and developers will need to collaborate to address Calgary’s housing challenges. Prioritizing affordable housing projects, streamlining approval processes, and investing in infrastructure will be essential to ensuring the city remains livable and attractive for residents.

In closing

I hope this information has been helpful. Remember, whether you’re a first-time buyer, seller or investor, I’m more than happy to be of service.