The city of Calgary is experiencing a surge in housing prices, particularly in the townhome market, as the city continues to see population growth and high demand for housing. According to a report from real estate firm Zoocasa, the average price of a townhome in Calgary has increased by 17 percent over the past year, reaching $458,100. This growth rate is higher than anywhere else in Canada, with Edmonton seeing a 10.3 percent increase in townhome prices to $245,900. As affordability becomes a concern for many residents, townhomes are becoming a more accessible option for homebuyers, especially for those starting out or downsizing from detached homes.
The Calgary Real Estate Board reported that 483 townhomes were sold in the city in April, representing a 16.1 percent increase compared to the same period last year. Realtors in the area attribute this growth to the lower minimum down payment required for townhomes compared to single and semi-detached homes. With a five percent down payment, the average townhome in Calgary requires $22,905, compared to a minimum down payment of over $50,000 for a single-detached home. However, despite the growing demand, the supply of townhomes in Calgary is declining, with fewer affordable options available on the market.
The increase in housing prices and demand for townhomes in Calgary follows a record year for housing construction in 2023, with over 15,393 homes built in the city, representing an 11 percent increase over the previous year. Multi-residential homes construction increased by 49 percent, and the development of secondary suites saw a 43 percent jump from 2022. However, the declining supply of affordable housing options in the city has prompted officials to consider rezoning proposals to include more housing types like rowhouses and fourplexes in residential areas.
Calgary’s mayor and experts in the real estate industry acknowledge the need for more affordable housing options in the city and the importance of increasing supply to meet the growing demand. The proposed rezoning changes are part of the City of Calgary’s housing strategy, which aims to address the housing affordability crisis and provide more opportunities for residents to find suitable housing options. While experts believe that supply will eventually catch up with demand, they also note that building homes takes time, especially when there are challenges in the construction industry such as labor shortages.
Overall, the townhome market in Calgary is experiencing significant growth, driven by population growth, high demand, and affordability concerns. As the city continues to face challenges in meeting the demand for housing, officials are exploring different strategies, such as rezoning proposals, to increase supply and provide more affordable housing options for residents. While it may take time for supply to catch up with demand, the real estate market in Calgary is expected to remain competitive as homebuyers seek more accessible and affordable housing options in the city.
