Calgary climbs affordability rankings despite rising cost of homeownership
Despite improving more than any other Canadian city in affordability rankings, Calgary families still need more income today to afford a typical down payment on a home than they did a decade ago.
A new study from the Vancouver-based Fraser Institute looked at data from 2014 to 2023 and found that housing affordability worsened across every major Canadian city.Ā
On average across Canadian cities, a 20 per cent down payment on an average home climbed from around 14.1 months of median family income in 2014 to 22 months in 2023, a 56 per cent jump. Mortgage payments also increased sharply, from 29.9 per cent in 2014 to 56.6 per cent of income in 2023.
Fraser Institute
The report says that by 2023, no major Canadian city had homes on the market that were affordable for families earning the local median income without either an unusually large down payment or outside financial help.
Vancouver and Toronto remained the least affordable markets in Canada in 2014 and 2023. The report notes that Quebec, Prairie, and Atlantic provinces’ cities’ affordability challenges were less severe.Ā
Calgary saw an increase in affordability among the significant cities, climbing 16 spots in the national affordability rankings between 2014 and 2023.
Fraser Institute
In 2014, Calgary was the 30th most affordable Canadian city, needing 16.2 months of after-tax family income to afford a 20 per cent down payment on a house. In 2023, it jumped up to spot number 14 in terms of affordable cities; however, families now need over 17 months of after-tax income to afford a down payment.
Only four Canadian cities saw a decrease in the months of income needed for a down payment, and Calgaryās northern neighbour was one of them. Regina, St. Johns, Saskatoon, and Edmonton were the only markets where the months decreased.
On the other hand, Kitchener, Cambridge, and Waterloo saw the most significant increase, with 13.2 months of family income needed in 2014 and 28.8 months of income required in 2023.
You can read the full report online.
With files from Allison Stephen