Alberta seeing higher growth rates than other areas of Canada
Alberta is welcoming people in droves. Not only are people immigrating to Alberta but they are also migrating from Ontario and British Columbia. Calgary and Edmonton’s population growth continues to rise while Toronto and Vancouver experience a cooling-off period.
3 Reasons for higher home buyer confidence in Alberta than other parts of Canada
1. Strong Economy
Alberta’s strong economy supports a dramatically lower unemployment rate than in the last two years. Calgary’s unemployment is down to 5.7% in 2022 from 8.4% in 2021 and 11.7% in 2020. Edmonton’s unemployment picture is even better which sits at 4.9% in 2022 down from 10.9% in 2021 and 11.8% in 2020.
There is a lot of employment opportunity in Alberta so there is an influx of skilled labour.
2. Higher Income
When we look at income levels across Canada, it is clear that Alberta’s earning opportunities out-competes other provinces. Alberta’s average monthly earnings are $5,452 in August 2022. This is more than Ontario at $5,174 or British Columbia at $5,036.
This also leads to higher disposable income in Alberta as compared to other provinces.
3. Home Affordability
When Alberta’s big city’s home prices are compared to other big Canadian cities, the pricing difference is stark.
Let’s look at the proportion of Monthly Income that is required for Mortgage Repayment for single detached homes projected for October 2022:
Calgary: 64.7%
Edmonton: 55.5%
Toronto: 142.9%
Vancouver: 202.3%
So, when people say Vancouver and Toronto are unaffordable, they aren’t kidding!
When you look at condos, the picture is similar. A significantly smaller portion of income is required to purchase a condo in Alberta when compared to other big Canadian cities.
Jackson Cornelius is the Director, Consulting and Advisory (Canada) at Zonda Urban (Formerly Urban Analytics). For more information on the real estate market, please reach out to jcornelius@zondaurban.com
Housing Supply and Demand
With Alberta’s strong economy, more employment opportunities, and dramatically different home affordability picture, home buyers in Alberta are confident.
Despite a frigid housing market in many parts of Canada, Calgary’s market is still a slightly seller’s market with more stable pricing and Edmonton is pretty balanced.
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Jackson Cornelius is the Director, Consulting and Advisory (Canada) at Zonda Urban (Formerly Urban Analytics). For more information on the real estate market, please reach out to jcornelius@zondaurban.com
