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Calgary’s Rental Market Decline: What It Means for Buyers and Sellers in 2025
The most recent National Rent Report from Rentals.ca and Urbanation reveals some striking numbers for Calgary: average asking rents in the city have dropped by 8.9% year-over-year — the sharpest decline among all major cities in Canada. With the average rent sitting at $1,903, this marks Calgary’s lowest rental level in over two years.
On the surface, this sounds like great news for renters. But if you’re a home buyer, seller, or investor in Calgary, it’s essential to dig deeper and understand how these market shifts can impact your real estate decisions.
In this blog post, I’ll break down what this data means, how it ties into broader national rental trends, and what Calgary buyers and sellers should keep in mind when navigating this evolving landscape.
National Rental Trends: A Quick Overview
Across Canada, the average asking rent rose 0.4% in April 2025 to $2,127 — a five-month high and the second consecutive monthly increase. While that seems to point to recovery, rents are still down 2.8% year-over-year, marking the seventh straight month of annual declines.
The market is showing signs of stabilization thanks in part to an influx of new supply. Purpose-built rentals, in particular, saw monthly gains (+0.9% to $2,105), while condo rents and other secondary rental types posted monthly and annual declines. Notably, two-bedroom condo rents dropped by 5.9% year-over-year to $2,344 nationally.
In Alberta, rents fell 0.2% from March and dropped year-over-year. Calgary saw the steepest annual decline among major cities, while Edmonton experienced a modest increase in shared accommodation rents.
Calgary: A Unique Market in Transition
While many Canadian cities are seeing rental prices inch upward, Calgary stands out as an outlier with a nearly 9% year-over-year decline. This might be surprising given Calgary’s strong population growth, economic diversification, and recent gains in home prices.
So what’s driving the dip in rental prices?
A few factors are likely at play:
- Increased rental supply: More purpose-built rentals have hit the market, which eases pressure on demand.
- Affordability-driven migration slowing: Calgary saw a wave of interprovincial migration during the pandemic due to its relative affordability. As that levels out, so does demand.
- High mortgage rates: With ownership still out of reach for some, demand remains present—but renters now have more options and negotiating power.
Now let’s explore how this situation affects both sides of the real estate equation.
What Lower Rents Mean for Buyers
If you’re a prospective home buyer—especially a first-time buyer or investor—Calgary’s current rental market presents some key considerations.
- Improved Investor Opportunities (With Caution)
Lower rents may seem like a red flag for investors, but they can also signal opportunity. In a softer rental market, the most strategic investors look for value buys—properties that still offer long-term appreciation potential and strong fundamentals like location, condition, and tenant appeal. However, it’s more important than ever to run accurate cash flow projections and ensure any rental property is purchased at the right price. - Renters May Transition into Homeownership
As rental prices stabilize or fall, the gap between renting and owning narrows. For renters who are financially prepared, this could be a tipping point toward exploring homeownership, especially if incentives like down payment assistance or first-time buyer programs are available. With less pressure in the rental market, these buyers may take their time—but they’re still watching for the right opportunity to jump in. - More Choices, Less Competition
A softer rental market often mirrors a more balanced or slightly buyer-favored real estate market. If rental units are sitting longer or offering incentives, it could indicate less urgency across the board—giving buyers more negotiating power when it comes to home purchases.
What Lower Rents Mean for Sellers
For home sellers, the rental market matters more than many realize—especially in a city like Calgary, where many buyers are also landlords or real estate investors.
- Investors May Be More Selective
In recent years, Calgary’s relatively affordable housing market attracted a wave of investor interest. But with rents dropping, investors will be scrutinizing the numbers more closely. If you’re selling a property that appeals to investors—such as a suited home, townhouse, or condo—be prepared to support your asking price with solid rent rolls, low vacancy rates, and minimal maintenance requirements. - A Shift in Buyer Motivation
Buyers coming from the rental market may be feeling less urgency to make a move. With more rental choices and falling prices, they have time to consider their options. Sellers should focus on presentation, pricing, and strategic marketing to ensure their property stands out in a slightly less motivated buyer pool. - Time to Rethink Pricing and Strategy
If your property has been sitting on the market longer than expected, this may be the time to reevaluate your strategy. Are you priced appropriately given current market conditions? Does your marketing highlight features that appeal to both investors and end-users? The most successful sellers are those who adapt quickly—and who work with agents who understand the broader economic and rental trends influencing buyer behaviour.
Navigating Uncertainty with Local Expertise
One of the biggest lessons from all this data? Real estate is hyper-local. National trends are helpful, but decisions in Calgary should always be made with local insight and context.
The rental market is just one piece of the puzzle. As a Calgary REALTOR® with over 15 years of experience, I’ve seen how market dynamics shift—and how the right strategy can still yield great results for both buyers and sellers, even in uncertain conditions.
Whether you’re thinking of buying your first home, investing in a rental property, or preparing to sell your current home, I’m here to help you navigate the process with confidence and clarity. Let’s connect to discuss how these market shifts may impact your goals—and how we can work together to achieve them.
Ready to make a move? Let’s talk strategy.
Calgary Real Estate Market Update – End of April 2025
Calgary Real Estate Market Update – End of April 2025
Balanced Conditions Bring Breathing Room for Buyers and Sellers
If you’ve been following the Calgary real estate market, you’ll know that things have moved quickly over the past few years — tight supply, steep price increases, and fierce competition. But this April, we saw something that’s been long overdue: balance. 🏡
Let’s dive into what’s happening in our local market, what’s behind the numbers, and what it all means whether you’re buying, selling, or just keeping an eye on things.
Inventory Doubles — But Don’t Panic
One of the big headlines this month is that inventory levels rose to 5,876 units. That’s more than double what we had this time last year. Now, before that number causes alarm, let’s put it into perspective. Last year’s inventory was exceptionally low — unsustainably low, in fact. So what we’re seeing now is more of a return to normal than anything dramatic.
This rise in new listings is helping bring much-needed balance to the market. With 2,236 sales in April, we’re seeing a sales-to-inventory ratio that translates into about three months of supply — the marker of a balanced market.
In real estate terms, balance is good news for everyone. Buyers get more choice and less pressure. Sellers still benefit from stable pricing. Win-win.
Economic Uncertainty Slows Sales — But Not to a Crawl
April sales were 22% lower than last year, but they’re still within historical norms. That decline isn’t necessarily a red flag — it reflects a few things:
🔹 Economic uncertainty
🔹 Higher interest rates compared to pandemic lows
🔹 More thoughtful, deliberate buying behaviour
According to Ann-Marie Lurie, Chief Economist at CREB®, we’re still doing better than we were in the tough years before COVID. Migration into Alberta remains strong, employment is relatively stable, and compared to last year’s ultra-low inventory, buyers now actually have options.
In short, the market has cooled from the red-hot highs — but it hasn’t frozen.
What About Prices?
After several years of aggressive price growth, home prices have levelled off month-over-month. That doesn’t mean they’re dropping — they’re just not climbing at the same breakneck pace.
Here’s how benchmark prices look year-over-year:
✔️ Detached homes: $769,300 → Up 2%
✔️ Semi-detached: $691,700 → Up 3%
✔️ Row homes: $457,400 → Flat
✔️ Apartments: $336,000 → Flat to slightly down depending on area
Detached and semi-detached homes still show price strength, particularly in the City Centre where demand remains high. However, with more listings hitting the market, buyers are starting to feel less pressure to bid high and fast.
For sellers, this means pricing your home properly is more important than ever — the days of multiple offers within 24 hours on anything and everything are behind us, at least for now.
Segment-Specific Breakdown: What’s Hot, What’s Not
Let’s break down what’s happening in different parts of the Calgary market:
🏘️ Detached Homes
Sales dropped 16% compared to April 2024, but certain areas — like the South East — actually saw growth. Inventory climbed to 2,511 units, with 2.3 months of supply. The lower end of the market still feels tight, so affordable detached homes remain in demand.
🏠 Semi-Detached
April saw 190 sales, down from last year, and 350 new listings. That put the sales-to-new-listings ratio at 54%. Inventory has increased to 484 units, pushing us closer to balance with 2.6 months of supply.
Still, prices held strong, especially in the City Centre. That area saw a 5% year-over-year gain, which is the highest in this segment.
🏢 Row Homes
The row-home market is settling down. With 1,005 units in inventory and almost three months of supply, we’re finally seeing relief from the low inventory crunch. Prices? They’ve flattened — and in some districts, like the North and North East, they’ve even dipped a bit.
This could be a great entry point for buyers looking for an affordable alternative to detached living.
🏬 Apartment Condos
This segment saw a nearly 30% drop in sales year-over-year, but let’s remember: last April hit record highs. Sales are still above long-term averages. With inventory climbing and three months of supply city-wide, conditions are more balanced.
The North East district is feeling this shift the most — with seven months of supply and a 2% year-over-year price decline. If you’re a first-time buyer or investor, this is a segment to watch closely.
Surrounding Markets: Airdrie, Cochrane, Okotoks
The story in Calgary’s neighbouring communities shows some unique dynamics too:
🏡 Airdrie
Sales were down for the third month in a row, but like Calgary, Airdrie is normalizing. Inventory levels are up to 2.3 months of supply, and prices held steady at $544,700. More listings mean more choice — something that’s been sorely missing in recent years.
🌄 Cochrane
Cochrane is seeing steady sales and rising listings, with benchmark prices hitting a record high of $592,000. It’s a solid option for those wanting a bit more space and nature while staying close to Calgary.
🌳 Okotoks
Sales eased and inventory is slowly rising, but levels remain below long-term trends. Prices softened slightly compared to last month, landing at $627,100, but are still up 2% year-over-year. It’s another good example of how even modest inventory gains can temper price growth.
What This Means for You
Whether you’re looking to buy, sell, or invest, this month’s market update tells us a lot about where we are and where we’re headed:
✅ Buyers: You finally have some breathing room. While prices haven’t dropped significantly, the days of overwhelming bidding wars are fading — especially in apartments and row homes. If you’ve been waiting for a more balanced market, this is it.
✅ Sellers: Price your home right, prep it well, and you’ll still find serious buyers. Properties in good condition and priced appropriately are still selling — just maybe not with 10 offers on day one. If you’re in the detached or semi-detached market, there’s still upward price momentum on your side.
✅ Investors: Condos in the North East and row homes in the suburbs might offer opportunity. Slower price growth and more inventory mean you can be strategic about your purchases.
✅ Everyone: We’re transitioning into a healthier, more sustainable market — and that’s good for the long-term real estate ecosystem here in Calgary.
If you’d like to chat about how these changes might affect your buying or selling plans, I’m always happy to offer insight and tailored advice.
Let’s make a plan that works for your goals.
Calgary’s Housing Market is Heating Up: Here’s Where Homes Are Selling Fastest
If you’ve been keeping an eye on Calgary’s real estate market — whether as a buyer, seller, or investor — you might have noticed some encouraging trends emerging. With rent prices starting to cool off 📉 and the spring market in full swing, the housing market is becoming even more attractive for those looking to make a move.
Even more exciting? Some Calgary neighbourhoods are flying off the market, with properties selling in record time! 🏡 According to the digital real estate platform Wahi, several communities saw homes sell with an average time on market of less than two weeks in March. For perspective, that’s an incredibly fast pace, especially compared to historical averages.
Fastest-Selling Neighbourhoods in Calgary
In March, these 11 Calgary communities stood out as the fastest-selling, each seeing an average days on the market of under 14 days — and in some cases, much quicker:
- Cougar Ridge – 12 days
- Parkland – 12 days
- Glamorgan – 12 days
- Beddington Heights – 12 days
- Garrison Woods – 12 days
- Crestmont – 11 days
- Maple Ridge – 11 days
- Woodbine – 11 days
- Woodlands – 11 days
- Dalhousie – 10 days
- Hamptons – 6 days! 😲
This is impressive activity and clearly signals high demand across a wide range of Calgary neighbourhoods.
It’s also interesting to note the pricing spread:
🏡 Crestmont topped the list with a median sold price of $940,500, showcasing strong interest in higher-end homes.
🏡 Dalhousie, on the other hand, was the most affordable of the fast-moving communities, with a median sold price of $583,300.
This variety demonstrates that buyers are active across different price points — from move-up homes and luxury properties to more entry-level and family-friendly options.
What This Means If You’re Buying or Selling
If you’re buying in Calgary right now, especially in these high-demand areas, it’s important to be prepared and proactive. ⏳ Homes are not sitting long, so being pre-approved for a mortgage, having a clear idea of what you’re looking for, and working with a REALTOR® who knows how to navigate a fast-paced market is key to getting your ideal home.
If you’re selling, it’s great news — but strategy still matters. ✨
Even in a hot market, proper pricing, presentation, and marketing can help you maximize your sale price and attract serious buyers quickly. Plus, not every neighbourhood or price point is moving at the same speed, so local experience is critical when it comes to setting expectations and planning a smart selling strategy.
Final Thoughts
Calgary’s real estate market is always evolving, and right now, it’s creating exciting opportunities for both buyers and sellers. 🌟
With homes moving this fast, having an experienced guide by your side can make all the difference. With over 15 years of experience helping Calgary buyers and sellers navigate changing markets, I’m here to help you make the most of your next move — whether that’s finding the right home in a competitive area or getting top dollar for your sale.
📲 If you have questions about buying, selling, or investing in Calgary real estate, don’t hesitate to reach out. I’d be happy to chat!
Market Update: Calgary Real Estate Begins to Balance Out This Spring
As a REALTOR® who’s been active in Calgary real estate for over 15 years, I’ve seen our market shift through many different phases — from red-hot to rock-bottom and everything in between. If there’s one thing I’ve learned, it’s that real estate is always moving, always evolving, and success comes from staying informed and adapting to the market we’re in.
So, what’s happening right now in Calgary real estate?
March has historically been one of the busiest months for resale activity in our city. But this past March looked a little different. We saw demand start to soften compared to last year, with resale activity dipping nearly 19% year-over-year. In fact, the 2,159 sales reported in March represent the lowest level of activity since April 2020 — a clear sign that we’re transitioning into a more balanced market after several years of extremely high demand and low inventory.
What’s Causing the Shift?
According to Ann-Marie Lurie, Chief Economist at the Calgary Real Estate Board (CREB), part of the cooling can be attributed to broader economic uncertainties — from concerns over interest rates to global trade issues — but much of it is simply the market finding its footing after a prolonged surge.
When you’ve had strong sales activity for an extended period of time, a pullback is not only expected, but healthy. And that’s what we’re seeing now.
More Inventory, More Choice
One of the most noticeable changes is the surge in inventory. As of the end of March, Calgary had 5,154 active listings — more than double what we saw in spring 2024. New listings also jumped nearly 27% to 4,019, giving buyers more options than they’ve had in a long time.
This increase in supply led to a 55% sales-to-new-listings ratio — a key metric that indicates a more balanced relationship between buyers and sellers. For the past few years, we’ve been in a strong seller’s market, where homes were often snapped up within days (or even hours), often with multiple offers. That dynamic is now shifting.
What’s Happening with Prices?
Despite the cooling in demand and the increase in supply, prices have remained relatively stable — and in many segments, they’re still inching up.
- The overall benchmark price across all property types held steady at $592,500.
- Semi-detached homes saw the largest jump in price, up 5% to $691,900.
- Detached homes climbed 4% to $769,800.
- Apartment condos increased 3% to $336,100.
- Row homes rose 2% to $454,000.
It’s important to note that not all areas of the market are experiencing the same pressure. The most competitive price point right now? Anything under $700,000, especially in the detached market. These properties are still in relatively short supply and continue to attract strong interest from buyers.
On the flip side, for properties priced above $700K — particularly detached homes — inventory levels are rising, and buyers have more choices, including newly built homes that are typically priced higher. According to CMHC, the average new single-family home in Calgary was priced around $860,000 in February.
What This Means for Buyers
If you’re a buyer who has been waiting on the sidelines, frustrated by a lack of inventory or discouraged by fierce competition, now might be your window of opportunity. With more listings coming online and fewer bidding wars than we’ve seen in recent years, there’s room to breathe — and room to negotiate.
But don’t be fooled into thinking it’s a “buyer’s market” across the board. Well-priced, well-presented homes — especially under $700K — are still moving quickly. Preparation and strategy remain essential.
This is where working with the right REALTOR® makes all the difference. From helping you navigate mortgage pre-approval to spotting hidden value in a hot neighborhood, my goal is to guide you through the process with confidence and clarity.
What This Means for Sellers
For sellers, the message is simple: expectations matter. We’re not in the same ultra-competitive market we were a year or two ago, and that means pricing, marketing, and presentation are more important than ever.
That doesn’t mean your home won’t sell — in fact, it very well could, and quickly — but you need to make sure it stands out and is priced according to today’s market, not last year’s. With more competition among listings, strategic pricing and professional marketing (photos, staging, digital exposure) will be the key to getting top dollar.
Looking Ahead
Even with demand slowing compared to last year, it’s important to keep things in perspective. March 2025 still ranks as the sixth-strongest March for sales over the past 15 years, according to CREB data. Calgary continues to attract new residents and investors, and our affordability (especially compared to other major Canadian cities) remains a strong draw.
Of course, the big wild card is interest rates. If rates begin to fall later this year — and there’s reason to believe they might — we could see another boost in demand heading into late spring and summer.
Final Thoughts
The bottom line? Calgary’s market is shifting, but not stalling. It’s moving from a place of frenzied activity to one that’s a little more balanced, a little more thoughtful — and in many ways, a little more predictable.
Whether you’re buying your first home, upgrading to something bigger, or preparing to list your property, now is the time to take a fresh look at your strategy and ensure you’re working with someone who understands this evolving landscape.
If you have questions about what this market means for you, I’m always happy to connect.
Let’s talk about your goals and how to make the most of this new phase in Calgary real estate.
Patrick Murray
REALTOR® | Calgary Residential Real Estate | Coldwell Banker Mountain Central
📍 Master Certified Negotiation Expert | Certified Condominium Specialist
Calgary Real Estate: Still Affordable Compared to Other Major Cities?
Affordability is top of mind for many Calgarians and residents of surrounding communities when it comes to real estate. With home prices on the rise and interest rates holding firm, it’s no surprise that buyers—particularly first-time buyers and young families—are asking whether homeownership in Calgary is still within reach.
While prices have certainly climbed, Calgary remains one of Canada’s more affordable major cities when household income is taken into account. A recent study by Ratesdotca compared the average price of a home to the income needed to qualify for a mortgage in six of the country’s largest urban centres. The findings offer some valuable perspective on where Calgary stands.
At the end of 2024, the average home price in Calgary was approximately $572,900. To qualify for a mortgage at the study’s assumed rate of 6.7% (based on the current stress test), a household would need to earn $129,000 annually. Fortunately, the median income in Calgary exceeds that threshold, making the city one of only a couple of markets where the average household has enough income to qualify for the average home.
Edmonton topped the list, with a required income of just $91,000 for the average home price of $397,400—and a median income of more than $141,600.
Compare that to Toronto, where the average price was over $1 million. There, a household needs to earn more than $232,000 annually to qualify, yet the median income is only about $134,000—a shortfall of nearly $100,000. The national average income ($124,700) also falls short of what’s needed to afford the average Canadian home, which was over $676,000.
Here in Calgary, while prices continue to rise—the Calgary Real Estate Board reported an average home price of over $639,000 in March 2025, up more than 7% year over year—our local economy continues to provide relatively high-paying jobs. This has helped keep homeownership within reach for many, especially when compared to the extreme price-to-income gaps in other cities.
That said, affordability is still a growing concern. Sales have declined over 20%, and many buyers are debating whether to purchase now before prices rise further or wait for possible rate cuts that might improve their buying power.
The good news? Opportunity still exists. Some buyers are rethinking location, opting for different neighbourhoods, or considering multi-family properties. Others are strategically entering the market now, knowing that timing it perfectly is rarely possible—but making a well-informed, confident move is always a good decision.
At Patrick Murray Luxury Homes, I’m here to help you navigate this evolving market with clarity, insight, and a plan tailored to your needs. Whether you’re considering selling your home or you’re buying your first home, looking to move up, or investing in Calgary real estate, let’s find the right path forward—together.
Calgary’s Bold Innovation Strategy: What It Means for Homeowners and Buyers
Calgary has always been a city that rises to the occasion. Whether it’s weathering economic challenges, supporting entrepreneurship, or adapting to global changes, this is a place built on resilience and forward-thinking.
That spirit was proudly on display this week as Calgary Economic Development unveiled a bold Innovation Strategy at its 2025 Report to the Community. The plan sets an ambitious course for our city — one that could see 187,000 new jobs created and more than $28 billion added to our economy by 2034. As a long-time Calgary REALTOR® and proud member of this community, I’m genuinely excited about what this means for current and future homeowners.
A Roadmap for Economic Resilience
The newly launched Innovation Strategy is all about future-proofing Calgary’s economy amidst global uncertainty. With ongoing trade disputes and economic shifts, it’s crucial for cities like ours to focus on what we can control — building capacity, unlocking innovation, and attracting talent and investment.
The strategy includes creating sector-specific innovation nodes across Calgary. These hubs will bring together post-secondary institutions, accelerators, startups, and private industry in focused, resource-rich environments. Unlike traditional innovation districts confined to one location, Calgary’s approach will be interconnected — forming a city-wide network of opportunity.
This vision builds on existing momentum from key facilities like the Life Sciences Innovation Hub, Energy Transition Centre, and Aerospace Innovation Hub — each representing growing sectors with long-term potential.
What Does This Mean for Real Estate?
While the strategy’s primary focus is economic development, the ripple effects will absolutely be felt in Calgary’s housing market. Here’s how:
✅ Job Creation = Housing Demand: 187,000 projected jobs over the next decade means more people moving to the city, whether they’re local graduates, out-of-province professionals, or international talent. More people = more homes needed.
✅ Increased Investment Confidence: With nearly $7 billion projected from just one strategic initiative (the Prairie Economic Gateway), Calgary is becoming an increasingly attractive place for investors — both in business and in property.
✅ Neighborhood Transformation: As innovation nodes develop, we can expect specific areas of the city to benefit from increased infrastructure, commercial vibrancy, and residential interest. Smart buyers and sellers will want to keep a close eye on these evolving pockets of opportunity.
✅ Stronger Resale and Rental Markets: A thriving economy supports home values and can lead to lower vacancy rates, higher rents, and increased demand for both ownership and investment properties.
Calgary is Ready for the Future — Are You?
I’ve been helping people buy and sell homes in Calgary for over 15 years. One of the best parts of my job is getting to see how this city grows and evolves — and right now, the future is looking brighter than ever.
Whether you’re thinking about moving up, downsizing, investing, or relocating to Calgary, now is a great time to explore your options. Our city is making strategic moves that will benefit homeowners for years to come — and I’d love to help you be a part of that growth.
Have questions about how Calgary’s economic vision might affect your real estate decisions? Let’s talk. 📞🏡
Patrick Murray is a licensed REALTOR® based in Calgary, Alberta. With over 15 years of experience and specialized training in negotiation and condominium sales, Patrick helps buyers and sellers make confident, informed real estate decisions.
Calgary’s Luxury Real Estate Market Holds Strong in 2025
Despite growing concerns about potential U.S. tariffs on the oil and gas industry and the looming federal election, Calgary’s luxury real estate market is showing remarkable resilience. Recent data reveals that luxury home sales over $1.5 million have increased by more than 11% compared to the same period last year. A total of 68 properties changed hands in the first two months of 2025, up from 61 sales during the same period in 2024.
The city’s appeal continues to draw buyers from Ontario and British Columbia, a trend that started during the pandemic and shows no signs of slowing down. Between July 1, 2023, and July 1, 2024, Calgary saw a net migration increase of close to 21,000 residents — the highest gain in over two decades. Statistics Canada also reports that Calgary has experienced the fastest population growth rate among all Canadian metropolitan areas in the past 20 years, at 5.8%.
Economic Strength Driving Demand Calgary’s strong economy has undoubtedly played a substantial role in maintaining momentum in the luxury market. While interprovincial migration has contributed to population growth, the city’s economic diversity has had an equally significant impact. The thriving oil and gas industry remains a cornerstone, while an emerging tech sector and ongoing efforts to attract new businesses have bolstered demand for high-end properties.
This combination of factors has led to luxury homes now accounting for 2.2% of the overall market, up from 1.6% during the same period last year. Detached homes dominate the segment, making up nearly 93% of sales, while condominium and semi-detached properties make up the remaining 7%. The bulk of sales so far this year have been priced under the $2 million mark, while inventory remains healthy, with over 200 listings priced above $1.5 million — including 35 ultra-luxury properties priced over $3 million.
Changing Preferences in the Luxury Market While established luxury neighborhoods like Upper Mount Royal, Britannia, and Elbow Park continue to attract buyers, there’s a noticeable shift toward inner-city communities like Altadore and Hillhurst. These areas offer new infill developments on generous lot sizes, ranging from 60 to 80 feet of frontage, appealing particularly to younger, move-up buyers looking for modern, spacious homes.
We’re also seeing downsizing trends among Calgary’s aging population, with 14% of residents now aged 65 and older. Empty nesters and retirees are trading their larger homes for smaller properties or condo apartments, while some are investing in vacation properties in B.C., Arizona, or California. Proximity to Calgary’s international airport makes this lifestyle shift even more appealing.
Multi-generational living is also making waves in the luxury segment. Acreage properties with secondary residences for adult children or older parents are drawing interest. In the city, carriage house suites and apartments over garages are becoming more popular in established neighborhoods, offering flexibility for extended family living.
What Lies Ahead for Calgary’s Luxury Market Given the current landscape, including the potential impact of tariffs and stock market volatility, the future remains uncertain. Yet Calgary’s real estate market has a history of resilience, bouncing back stronger after every challenge. With a strong local economy and the highest number of millionaires per capita in Canada, the city’s luxury market is expected to remain robust.
Most moves in the current market are needs-based, and buyers at the top end tend to be less influenced by market timing, making the luxury segment more resilient. Whether it’s the city’s economic opportunities or lifestyle appeal, luxury real estate in Calgary continues to thrive.
If you’re curious about how these trends might impact your real estate goals, feel free to reach out — I’m always happy to chat and share insights!
Tariffs, Interest Rates, and the Real Estate Market: What It Means for Buyers and Sellers
In real estate, market dynamics are constantly shifting due to external factors such as interest rates, economic policies, and global trade uncertainties. Recent developments—including the Bank of Canada’s (BoC) interest rate cut and ongoing concerns over tariffs—have introduced both opportunities and challenges for buyers and sellers alike. Understanding how these factors interplay can help you make informed decisions in the current market environment.
The Interest Rate Cut: A Welcome Change?
On March 12, the Bank of Canada announced a reduction in its key interest rate from 3 percent to 2.75 percent. Typically, lower interest rates make borrowing more affordable, encouraging prospective homebuyers to enter the market. In theory, this should lead to increased demand, more transactions, and a boost in home prices.
However, despite this rate cut, many buyers remain hesitant. Over the past two years, many have been waiting on the sidelines, expecting mortgage rates to decline further before making a move. This latest cut was expected to bring them back into the market, but uncertainty around U.S. tariffs is dampening their confidence.
Tariff Uncertainty and the Market’s ‘Wait-and-See’ Approach
One of the biggest reasons for continued hesitation among buyers is the ongoing economic uncertainty related to U.S. tariffs. Trade policies, particularly those enacted under the Trump administration, have created ripple effects across multiple industries, impacting job stability, investment, and overall consumer confidence. When buyers are unsure about the future of the economy, they tend to delay major financial decisions—including purchasing a home.
In addition to buyer hesitation, sellers are also feeling the effects of market uncertainty. Many homeowners who had initially planned to list their properties are waiting until spring in hopes of more economic clarity and improved market conditions. This means fewer listings in the short term, potentially leading to lower inventory levels.
What This Means for Buyers
For prospective buyers, this could be an excellent opportunity to act while others remain hesitant. With the interest rate cut in place, mortgage costs are slightly lower, which can improve affordability. Additionally, if many buyers are taking a ‘wait-and-see’ approach, there may be less competition in the market right now. This can create opportunities to negotiate better deals, especially with motivated sellers who are eager to move their properties before the traditionally busy spring market picks up.
However, it’s also important to consider the broader economic climate. Buyers should assess their own job security, financial situation, and long-term investment goals before making a purchase. While interest rates are favorable now, waiting for more economic stability could still be a prudent choice for those with concerns about future market conditions.
What This Means for Sellers
For sellers, patience may be key. If economic uncertainty is discouraging buyers, pricing competitively and presenting your home in the best possible condition will be essential for attracting interest. Additionally, working with a skilled REALTOR® who understands market trends, pricing strategies, and effective negotiation techniques can make all the difference in successfully selling your home in uncertain times.
That said, the upcoming spring market could present new opportunities, especially if economic conditions stabilize and buyers gain more confidence. Sellers who prepare their homes properly now—taking care of minor repairs, staging, and ensuring strong marketing strategies—will be in a better position once more buyers decide to enter the market.
Looking Ahead: Will Stability Return?
Experts suggest that buyers will continue their cautious approach until they see greater economic stability. If tariff concerns ease and interest rates remain low, we could see renewed market activity later in the year. Until then, both buyers and sellers should stay informed, assess their personal situations carefully, and work with experienced real estate professionals to navigate the complexities of today’s market.
As always, staying ahead of trends and understanding how external factors influence real estate can help ensure you make the best decisions for your financial future. If you’re considering buying or selling in Calgary’s evolving market, reach out—I’d be happy to provide insights and guidance tailored to your needs.
Calgary’s Bold Office-to-Housing Conversion Initiative: Is It Working?
For years, Calgary has wrestled with a pressing challenge: revitalizing its downtown core. Mark Garner, president of the Calgary Downtown Association, recently emphasized the city’s transformation, calling the West End “the place to be.” His statement marks a significant shift from the struggles Calgary’s downtown faced over the past decade, especially as office vacancies soared following the 2014 oil crash and the pandemic-induced work-from-home boom.
Between 2014 and 2021, office vacancy rates climbed from 9.8% to a staggering 33%, leaving Calgary’s downtown in what urban theorists call a ‘doom loop’—a cycle in which businesses vacate offices, reducing foot traffic, hurting local businesses, and making downtown even less desirable. Compounding this issue was Calgary’s worsening housing crisis, with the vacancy rate dropping from 5.1% in 2021 to just 1.4% in 2023, driving up housing costs and reducing affordability.
Faced with these twin crises, the city took an unprecedented step in 2021, approving a $200 million revitalization plan that included converting office spaces into residential units. But nearly four years in, how effective has this strategy been?
A Pioneering Plan to Reshape Downtown
The city’s Greater Downtown Plan, backed by $200 million in funding, aimed to address housing shortages and economic stagnation. Of this, $153 million was allocated to incentivize office-to-residential conversions. The plan sought to remove six million square feet of office space by 2031, primarily through conversions.
Developers responded with enthusiasm, with the first round of funding fully allocated to 13 projects, and a second round in 2023 adding $52.5 million in funding. Importantly, developers only receive city funding upon completion, ensuring taxpayer dollars are safeguarded.
Early Successes and International Recognition
The first project, an affordable housing initiative by non-profit developer Homespace, converted an office building into a residential space in just one year. The project included two floors designated for the family shelter Inn From the Cold. This success drew international attention, with the Washington Post and the San Francisco Chronicle citing Calgary’s approach as a potential model for U.S. cities struggling with similar challenges.
Today, two major conversions—Cornerstone (112 suites) and HAT at Eau Claire (87 rental units)—are already available, with a third, a 195-unit premium rental complex, opening in summer 2024. Additionally, three more residential buildings are slated for completion by 2028, bringing Calgary’s total investment to $20 million and leveraging $350 million in private funding.
With nine more conversions in the works—six expected to be completed this year and the remainder by 2026—the initiative is gaining momentum. Mayor Jyoti Gondek emphasized the program’s importance, stating, “These investments matter because they build up our tax base… allowing follow-on investments in public safety, roads, and recreation.”
Challenges and Setbacks
Despite its promising trajectory, Calgary’s office conversion program has not been without hurdles.
Structural and Design Challenges: Office buildings are not inherently suited for residential use. Developers must navigate issues such as floor plate sizes, plumbing and electrical systems, insulation, and access to daylight. Some buildings are simply too costly or complex to retrofit, leading at least one developer to withdraw from the program.
Cost Overruns and Construction Delays: The historic Barron Building, for example, saw its projected conversion costs double. As Bill Black, president of the Calgary Construction Association, noted, “There’s so many things that can lurk beneath the surface that you’re not aware of until you get going.” Rising construction costs, supply chain disruptions, and tariff threats from the U.S. have further complicated the process.
Is It Working? A Mixed but Promising Picture
While conversions alone won’t solve Calgary’s housing crisis or eliminate office vacancies, they are making a measurable impact. By the third quarter of 2024, office vacancy rates had declined to 23.3%, down from 33% in 2021. Meanwhile, the city’s overall rental housing vacancy rose from 1.4% in 2023 to 4.8% in 2024, helping to stabilize rent prices.
The initiative also plays a key role in repositioning Calgary as a dynamic, livable city. “If we hadn’t started this four years ago, we would be far behind where we need to be right now,” Mayor Gondek stated. However, experts remain cautious about declaring the program an outright success. Greg Kwong, Alberta region managing director for Coldwell Banker Richard Ellis, pointed out that the initiative is still in its early stages, and ongoing funding and policy support will be necessary for long-term success.
The Path Forward
Calgary’s bold experiment in office-to-housing conversions offers valuable lessons for cities worldwide grappling with vacant commercial space and housing shortages. The program has demonstrated that, with the right incentives and planning, adaptive reuse of office buildings can contribute meaningfully to downtown revitalization. However, challenges remain, and continuous adjustments will be necessary to ensure its viability.
As the city moves forward, the success of the program will hinge on balancing incentives with pragmatic expectations. While not a silver bullet, the initiative is proving to be a valuable tool in reshaping Calgary’s downtown, making it a more vibrant and livable space for future generations.
Based on an article in the Calgary Herald on March 12, 2025 and written by Hiren Mansukhani.
Trump’s Tariffs and Calgary’s Mortgage Market: What You Need to Know
As we settle into the first months of the Trump presidency, one unexpected side effect has emerged for Canadian homeowners and buyers: lower fixed mortgage rates. According to a recent article by Robert McLister in the Calgary Herald (March 6, 2025), Trump’s tariff-driven trade policies have rattled the bond markets, pulling down yields and, in turn, reducing fixed mortgage rates.
For those renewing their mortgages or looking to buy, this is a welcome development. Lower interest rates can significantly reduce monthly payments, making homeownership more accessible and easing the financial burden for existing homeowners facing renewal. In fact, CIBC recently made headlines as the first of the Big Six banks to drop advertised fixed rates below 4% since April 2022, slashing rates by up to 50 basis points. Meanwhile, online brokers such as Butler Mortgage and Citadel Mortgages are offering insured five-year fixed rates as low as 3.84%, further intensifying competition in the lending market.
The Good News: Lower Mortgage Rates
If you’re in the market for a home or coming up for renewal, these rate drops could work in your favor. With fixed mortgage rates hitting their lowest levels in years, now might be an opportune time to lock in a competitive rate, particularly if you favor stability in your payments. Variable rates, too, remain a point of discussion, as market indicators suggest there’s a strong chance the Bank of Canada will cut rates again soon.
The Bad News: Economic Uncertainty
However, while lower rates are a positive development, they come with a caveat: economic instability. A trade war triggered by U.S. tariffs could hurt Canadian businesses and lead to job losses, making mortgage affordability less about interest rates and more about job security. As McLister wittily puts it, saving on interest is like getting a discount on a coffin when you’re already dead.
What This Means for Calgary Homebuyers and Homeowners
For buyers, this is a chance to secure a lower-cost mortgage, but it’s crucial to work with a knowledgeable REALTOR® and mortgage professional to ensure you’re making a financially sound decision. For homeowners renewing their mortgages, now is the time to explore lender options beyond the big banks, as smaller lenders and mortgage brokers may offer more competitive rates.
Calgary’s real estate market has seen its ups and downs, but one constant remains: making informed decisions is key. If you’re considering buying, selling, or refinancing, let’s discuss how these market shifts impact your real estate goals. Reach out today, and let’s navigate this ever-changing landscape together.
