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Calgary Real Estate Market Outlook for 2025: What Buyers, Sellers, and Investors Need to Know
As we look toward 2025, the Calgary real estate market is poised for an exciting year. Calgary, Alberta’s largest city, has been experiencing significant growth and transformation over the past few years, and that momentum shows no signs of slowing down. With a mix of rising demand, population growth, and an evolving economic landscape, Calgary’s housing market in 2025 promises to be both dynamic and full of opportunities.
Whether you’re a first-time homebuyer, a seasoned investor, or someone looking to sell, understanding the key trends and factors that will influence the market in 2025 is crucial. In this blog post, we’ll explore what you can expect from the Calgary housing market next year and provide valuable insights into the Alberta real estate market as a whole.
Calgary Real Estate Market Trends for 2025: What to Expect
1. Continued Strong Demand for Calgary Homes
Calgary’s real estate market is driven by strong demand, and this trend is expected to continue in 2025. Several factors are contributing to this:
Population Growth: Calgary has been one of the fastest-growing cities in Canada in recent years, thanks in large part to its strong economy and relatively affordable cost of living compared to other major Canadian cities. Calgary’s population is expected to keep growing, fueled by people moving from other provinces and international newcomers. This influx of residents, particularly those attracted to Calgary’s booming tech sector, energy industries, and a high standard of living, will continue to put pressure on the housing market.
Relocation and Migration: Calgary continues to see significant interprovincial migration, with many Canadians moving to Alberta for job opportunities and a lower cost of living. As more people settle in Calgary, demand for both rental properties and homes for sale will keep increasing, particularly in popular Calgary neighborhoods like Beltline, Bridgeland, Kensington, and Downtown Calgary.
The Housing Supply Shortage: Despite a steady stream of new construction projects, Calgary’s housing inventory remains relatively low. Limited inventory, particularly in the entry-level and mid-range price brackets, is expected to remain a significant challenge in 2025. This shortage of available homes for sale will continue to drive competition, especially for single-family homes, townhouses, and condos in desirable areas.
2. Calgary Home Prices: Will Prices Keep Rising?
In 2025, Calgary real estate prices are expected to continue to climb, but at a more moderate pace compared to the rapid increases we’ve seen in recent years. The single-family home market in Calgary has seen significant price growth, especially in neighborhoods such as Aspen Woods, Springbank Hill, and Evanston, and this trend will likely continue in 2025.
Detached Homes: Calgary’s detached homes will remain in high demand, particularly in suburban areas with larger lots. Expect these types of properties to see continued price growth, especially in Northwest Calgary, Southwest Calgary, and other desirable suburban communities like Airdrie and Cochrane, which benefit from affordable housing options and strong commuter access to the city.
Condos and Townhouses: In contrast to the single-family home market, the Calgary condo market might experience some stabilization in 2025. After seeing several years of price increases, downtown Calgary condos and properties in established urban neighborhoods like Mission and Tuxedo Park may see a slight cooling in price growth. However, condos could remain an attractive option for first-time homebuyers and those looking for more affordable options in the city.
Luxury Market: The luxury real estate market in Calgary, particularly in upscale areas like Elbow Park and Mount Royal, could see continued growth. Calgary’s high-income earners, many of whom work in energy, technology, or finance, have fueled demand for luxury homes, and this segment is expected to remain strong in 2025. High-end properties in Calgary’s most coveted neighborhoods are likely to continue appreciating due to a mix of local wealth and interest from out-of-province buyers.
3. Alberta's Economic Outlook: A Strong Foundation for Real Estate
Alberta’s economy is expected to continue its recovery into 2025, benefiting from the ongoing recovery in global oil prices, strong performance in the tech sector, and government investment in infrastructure projects. Calgary, as Alberta’s economic engine, will continue to attract people from across Canada and internationally, making it a strong real estate market for both buyers and investors.
The Energy Sector: As Alberta’s energy sector continues to grow, Calgary’s economy is expected to benefit from job creation and economic diversification. Higher wages, along with a more robust job market, will keep driving housing demand, especially among professionals looking to buy homes in Calgary’s high-demand neighborhoods.
Tech and Innovation: The growth of Calgary’s tech and innovation sectors will also influence the housing market. Calgary has become an increasingly attractive destination for tech companies and startups, particularly in areas like East Village, Inglewood, and Beltline. The city’s ability to diversify its economy beyond oil and gas will make it an appealing option for young professionals and entrepreneurs, further boosting demand for homes in central and emerging neighborhoods.
4. Interest Rates and Mortgage Accessibility in 2025
One of the biggest factors influencing Calgary’s real estate market in 2025 will be interest rates. While the Bank of Canada has kept interest rates relatively high in recent years, there is the potential for interest rate cuts, which could stimulate demand for homes. If rates drop, we could see more buyers entering the market, which would further fuel price growth, especially for buyers relying on mortgage financing.
For buyers, mortgage rates in 2025 will play a crucial role in determining affordability. While some may benefit from more favorable rates, others who are looking at higher-priced homes may face challenges securing financing if rates remain elevated. Those looking to purchase in Calgary’s luxury market or high-demand neighborhoods should keep an eye on changes to mortgage rules and interest rates.
5. Calgary’s Suburban Growth: Expanding Communities
Suburban areas of Calgary are seeing rapid growth, with many buyers seeking homes in more affordable communities with larger lots and family-friendly amenities. As city limits expand, neighborhoods like Airdrie, Okotoks, Cochrane, and Chestermere are expected to continue attracting homebuyers and investors.
Airdrie and Cochrane: These fast-growing communities have become particularly popular with young families and those seeking more space at an affordable price point. With good access to Calgary via major highways and LRT extensions, these suburban areas offer more square footage for less money than inner-city areas, which makes them an attractive option for those relocating to the city.
Increased Infrastructure and Connectivity: As Calgary expands, the continued development of infrastructure, including the extension of the Calgary LRT, highways, and roadways, will make suburban living even more appealing. Communities like Mahogany, Legacy, and West Springs will continue to benefit from better transit and infrastructure, helping ease the commute into downtown Calgary.
6. Calgary Real Estate Investment: Opportunities in 2025
Investors should pay attention to Calgary’s housing market in 2025, as both the rental and resale markets continue to offer promising opportunities. The ongoing housing shortage, paired with high demand for both single-family homes and rental properties, makes Calgary a strong market for real estate investors.
Rental Properties: With many Calgarians opting to rent, Calgary’s rental market will continue to be competitive. High demand in central neighborhoods like Kensington, Bridgeland, and Victoria Park will keep rental prices high, making these areas particularly appealing for investors looking to acquire multi-family or condo rental properties.
New Developments: Investing in new construction or pre-sale properties in up-and-coming communities like Seton, East Village, and University District could offer substantial returns. As Calgary’s urban development continues to evolve, these areas are becoming increasingly attractive to buyers, both for ownership and as rental investment properties.
Looking ahead to 2025, Calgary’s real estate market presents exciting opportunities for both buyers and sellers. While prices are expected to continue rising in many segments, affordability remains a key concern for many buyers. Suburban areas, in particular, will continue to attract those seeking more space at a lower cost, while the central market will remain competitive, especially in sought-after neighborhoods.
For investors, Calgary remains an attractive market, with strong potential for both residential and rental property investments. With a growing population, a strong economy, and low housing inventory, Calgary’s real estate market in 2025 is one to watch.
Whether you're looking to buy your first home, sell a property, or invest in Calgary real estate, it’s important to stay informed and work with an experienced Calgary real estate agent who understands the local market dynamics. If you’re ready to take the next step, contact me today for personalized insights into Calgary’s real estate opportunities in 2025.