This is how much it costs to rent in Calgary compared to owning a home
As rent continues to skyrocket in Calgary and with things only expected to get pricier, the thought of buying a home instead of renting might have crossed your mind.
If you’re shelling out huge amounts for rent and don’t own the place you live in, paying a little more — but at least having something to call your own — probably seems compelling.
However, it might not be as affordable as you’d think.
According to a recent analysis report by the online housing platform Zoocasa, a mortgage in Calgary costs, on average, more than the average asking price for rent.
An average monthly mortgage payment for Calgary in January, according to Zoocasa, was $2,540. In comparison, the average asking rent price that month was $1,896.
The company’s data also states that the average typical home price in Alberta’s largest city is $554,500.
Our neighbours to the north might be taking away from our time in the affordability spotlight.
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“Edmonton is positioned as a more affordable alternative for those who may find themselves getting priced out of the Calgary market,” the report reads.
It also says that Edmonton’s average monthly mortgage payment was almost $1,000 cheaper than Calgary’s.
Zoocasa analyzed 26 markets across Canada and compared monthly rental prices and monthly mortgage payments using average prices in December 2023 to find out if it is more affordable to rent or buy in each city.
Among the cities analyzed, Calgary’s $2,540 per month was in the middle of the pack for mortgage payments. Places like Victoria ($3,930) and Mississauga ($4,705) were quite a bit more expensive per month for mortgages.
In comparison to Calgary’s $664 difference, the gap between a monthly mortgage payment and rent in Vancouver was $2,174, with Vancouver’s average rent topping the list at $3,180 and the city’s average monthly mortgage payment also topping the list at $5,353.
Rental price numbers were sourced from Rentals.ca and were calculated by finding the average price of one-bedroom and two-bedroom rentals. Monthly mortgage payments were calculated assuming a 20% down payment and a 5-year fixed mortgage rate of 4.84% amortized over 25 years.
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