Out-of-province buyers are helping Calgary's pricey housing market balloon
A new report out of the Calgary Real Estate Board (CREB) highlights Calgary’s dynamic housing market and has found the city has been attracting buyers from out of the province, contributing to the demand for higher-priced housing.
Most of the buyers are coming from Ontario and BC, markets where housing prices are significantly higher than Calgary’s.
View this post on Instagram
“An influx of migrants coming from Ontario and British Columbia are likely contributing to some of the strength for higher priced properties, as the relative affordability could make migrants less sensitive to the recent gains in lending rates,” says CREB Chief Economist Ann-Marie Lurie.
“At the same time, continued strength in our labour market is supporting demand across all property types.”
- You might also like:
- Rental prices in Calgary see massive 32% increase compared to last year
- Calgary's rental market is ballooning faster than any other major Canadian city
- It's official: Minimum wage isn't NEARLY enough to rent in Calgary
View this post on Instagram
The report looked at another factor leading to Calgary’s housing market demand: the strong labour market.
“Calgary continues to report employment gains across a wide range of sectors, with strong growth in construction, manufacturing, health care, services, and professional and business-building activities.”
CREB
With the high demand in housing, it’s problematic the city has not yet seen the same level of supply.
“Housing supply levels have remained low across the resale new home and rental markets. New home starts have remained relatively strong but have not had any impact on inventory levels thanks to strong migration,” the report stated.
“Meanwhile, gains in resale supply have also struggled more than expected as higher lending rates and limited supply choices are likely preventing some existing homeowners from making changes to their current situation.”
The report says the pace of monthly gains is expected to slow, but the lack of supply will keep prices high moving into the second half of the year.
Follow Channels and Categories