You need an extra $10K to buy a house in Calgary compared to last month

It’s no surprise that Calgary’s housing market has become unaffordable for many, and things look to be getting worse as you’ll now need an extra $10,000 to afford a home.

A new report from Ratehub.ca calculated the minimum annual income required to buy an average home in some of Canada’s major cities based on data gathered between January and February 2024.

ratehub.ca

In January, Calgarians needed to make $117,100 per year to buy their own home in the city. Today, Calgarians need to make $118,300 to achieve their homeowner dreams.

That number is still far out of reach for many Calgarians, and the price of homes has increased by an even larger amount. In January, the average cost of a house in Calgary was $557,500. That number has now jumped by $10,400 to $567,900.

James Laird, the co-CEO of Ratehub.ca and president of CanWise mortgage lender, says that after a dip in the income needed to buy a house last month, two things are increasing housing unaffordability.

“The two key variables, which are home values and interest rates, have moved in opposite directions since January; interest rates are down and home values are up in 12 out of 13 cities. The increase in home values was enough such that affordability decreased in 11 of 13 cities despite the drop in rates,” he said.

“Because the two key variables moved in opposite directions, the fluctuation in income required is lower than the swings we’ve seen in past months.”

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Meanwhile, our neighbours to the north are enjoying average home prices within reach of an income below six figures, unlike most of the rest of the country.

Cities including Edmonton, Vancouver, and Toronto all saw average house prices increase in February. Affordability is poised to decrease even further this year, with the housing market showing signs of a “robust” spring season, Ratehub noted.

The Canadian Real Estate Association found that sales rose by 20% annually, with previously stagnant buyers ready to jump back in due to prospects of lower rates later this year.