The Alberta housing market in 2025 continues to demonstrate strong performance, with home prices and sales activity increasing across most regions of the province. Alberta remains an attractive option in the Canada housing market for prospective homebuyers and real estate investors.
This article will examine the Alberta housing market in-depth, utilizing the latest data and expert insights to help you make informed decisions about your real estate investments.
Alberta Housing Market Snapshot
Alberta housing market in November 2024 saw notable shifts in prices and transactions.
Average Home Prices in Alberta
The Alberta housing market in late 2024 experienced a significant moderation in sales and home prices every month, although they remain higher year-over-year.
| City | Average Price (Dec 2024) | Annual Appreciation |
|---|---|---|
| Calgary | $615,692 | 14.0% |
| Edmonton | $436,401 | 14.6% |
| Red Deer | $380,680 | 13.4% |
| Lethbridge | $382,908 | 15.5% |
| Medicine Hat | $336,012 | -2.8% |
| Grande Prairie | $394,305 | 36.8% |
| Fort McMurray | $372,587 | 7.8% |
| Alberta | $500,173 | 11.3% |
Grande Prairie recorded the highest annual appreciation rate by late 2024, while Medicine Hat was the lone market to post a decrease in average values. However, medicine hat saw a significant increase in transactions, suggesting demand remains robust.
Overall, Alberta home prices increased slower than the national average but have plenty of room left to appreciate.
Alberta Sales Activity
According to the Alberta Real Estate Association, the sale activities in Alberta for November 2024 are as follows:
| Region | Sales | Year-over-Year Change |
|---|---|---|
| Calgary | 2,186 | +0.6% |
| Edmonton | 1,752 | +17.3% |
| Central AB | 462 | -2.1% |
| Fort McMurray | 98 | +42.0% |
| Grande Prairie | 98 | -4.0% |
| Lethbridge | 148 | +42.0% |
| Medicine Hat | 90 | +59.0% |
| Other AB | 755 | +7.3% |
| Alberta | 5,589 | +11.3% |
The data shows that the sales activity varied across different regions in Alberta. Alberta recorded an 11.3% increase in sales activity compared to November 2023.
Calgary experienced a modest year-over-year sales increase of 0.6%, while Edmonton saw a significant growth of 17.3%. Additionally, Lethbridge, Medicine Hat, and Fort McMurray reported substantial increases in sales activity compared to the previous year. In contrast, Central Alberta and Grande Prairie recorded slight declines in sales.
Housing Market in Different Regions in Alberta
Let’s examine how the housing markets of Alberta’s most prominent cities performed in late 2024:
Calgary
Moderating sales and rising inventory point to tempering demand compared to other cities
- Sales edged up 0.6% annually in November 2024
- Active listings increased significantly, up 45%
- Benchmark price rose 14% to $615,692
Edmonton
Surging sales and shrinking supply highlight robust demand
- November 2024 sales up 17.3% annually
- Benchmark price climbed 14.6% to $436,401
- Inventory fell 27% annually
Red Deer
Price growth remained healthy despite a modest sales slowdown
- November 2024 sales dipped 9%
- Benchmark price increased 13.4% to $380,680
- Months of supply tightened to 1.8
Lethbridge
Large price and sales gains underscore strengthened demand
- November 2024 sales jumped 42%
- Benchmark price improved 15.5% to $382,908
- Months of supply fell 37% to 2.12
Medicine Hat
Robust sales growth driven by affordable listings
- November 2024 sales surged 59%
- Benchmark price slipped 2.8% to $336,012
- Months of supply plunged 64% to 1.15
Grande Prairie
Significant price appreciation despite modest sales activity
- November 2024 sales eased 4%
- Benchmark price rose nearly 37% to $394,305
- Months of supply declined by 26%
Fort McMurray
Impressive sales and price momentum
- November 2024 sales increased by 42%
- Benchmark price grew 7.8% to $372,587
- Months of supply fell 34%
In summary, while conditions eased in Calgary, demand surged in Lethbridge, Medicine Hat, and Fort McMurray. Prices climbed across the board, demonstrating the breadth of the housing recovery. Market fundamentals appear strong provincially heading into 2025.
Alberta Luxury Market
Alberta’s luxury segment, defined as properties over $1 million, saw substantial demand growth:
- Calgary luxury sales above $3 million climbed 156% in 2021
- Edmonton luxury sales above $3 million jumped 167% in 2021
- Smaller communities like Canmore and Banff also saw a luxury boom
- Higher prices pushed more mid-range properties over $1 million
Investor activity has been strong, targeting new high-end developments. Alberta’s luxury housing outperformance looks poised to continue. However, builders grapple with supply chain issues, labour shortages, and rising costs, potentially muting new project launches. Still, the top end of the market is expected to see sustained strength moving forward.
Why Are Home Prices Increasing in Alberta?
4 key factors are placing upward pressure on home prices across Alberta:
Economic Growth and Immigration
Alberta’s economy continues to fire on all cylinders in 2025 after undergoing significant diversification. Thriving industries like technology, aerospace, finance, and construction now power growth. This reduces reliance on oil and provides resilience against energy market volatility. Strong economic fundamentals and plentiful job opportunities attract workers across Canada and abroad.
Alberta’s population has swelled through net interprovincial migration and international immigration. All these new residents require housing, creating a huge demand for owned and rental properties.
Low Taxes and Cost of Living
Alberta’s tax regime is a major draw, as the province has no payroll tax, sales tax, or health premiums. Provincial income taxes are also lower, allowing residents to keep more earnings. This increased purchasing power gets channelled partly into the housing market.
Alberta also boasts competitive utility costs and lower prices for consumer goods relative to other regions. The low cost of living leaves residents with more disposable income to be directed toward housing.
Housing Remains More Affordable Than Ontario and B.C.
The average home price in Alberta is substantially lower than in Toronto, Vancouver, and surrounding suburbs. Housing markets in Ontario and British Columbia have skyrocketed out of reach for many buyers. Alberta provides much greater affordability by comparison, even with rising prices.
Working professionals and young families increasingly look to Alberta cities like Calgary and Edmonton to find homes meeting their budgets. This budget-driven demand lifts prices across the province.
Strong Rental Market Attracts Investors
Thriving job creation means Alberta cities are magnets for young workers and students who favour renting. Investors have noticed, snapping up properties to capitalize on surging rental demand. This fuels competition among landlords, allowing them to achieve higher rental rates, which can enhance investment returns. Buy-to-let has emerged as a popular real estate investment strategy, buoying demand across markets like Calgary and Edmonton.
Is Alberta a Seller’s Market in 2025?
The sales-to-new listings ratio (SNLR) indicates whether a housing market favours buyers or sellers. A reading above 60% is generally considered a seller’s market. For November 2024, Alberta’s provincial SNLR hit 86%, meaning the market strongly favoured sellers.
| City | SNLR | Months Supply Change | Market Type |
|---|---|---|---|
| Calgary | 77% | 44% increase | Seller |
| Edmonton | 91% | 38% decrease | Seller |
| Red Deer | 96% | 17% decrease | Seller |
| Lethbridge | 103% | 37% decrease | Seller |
| Medicine Hat | 123% | 64% decrease | Seller |
| Grande Prairie | 98% | 26% decrease | Seller |
| Fort McMurray | 98% | 34% decrease | Seller |
The months of housing supply metric also indicates the seller’s market conditions. Alberta’s months of supply decreased 17% year-over-year to just 2.54 months in November 2024, down from 3.06 months in November 2023. Under 4 months of supply is associated with appreciating prices.
Calgary’s SNLR was 77% in November 2024, representing a seller’s market. However, months of supply rose 44% to 2.42 months, indicating a potential shift toward more balanced conditions.
Edmonton remained a firm seller’s market with an SNLR of 91% and just 2.04 months of supply. Inventory tightened significantly, with months of supply improving 38% from the previous year.
Cities like Red Deer, Lethbridge, Medicine Hat, Grande Prairie, and Fort McMurray maintained SNLRs above 75%, keeping them in the seller’s market territory as of November 2024. Months of supply reductions ranged from 17% to 64% annually across these centers.
In summary, late 2024 data confirms Alberta broadly remained a seller’s market, although Calgary showed early signs of rebalancing. The overall Provincial outlook still favours sellers and should put upward pressure on prices through 2025.
Explore Canada Housing Market 2025
How Have Different Property Types Appreciated in Alberta?
Detached homes, townhouses, condominiums and semi-detached properties all recorded impressive price growth in Alberta:
- Detached homes: Prices rose 8.4% annually in November 2024 to an average of $580,234. Strong demand for space among families supported growth.
- Semi-detached: Values increased 9% year-over-year to $513,238 as of November 2024. The relative affordability of semis kept demand healthy.
- Townhouses: This segment saw the highest appreciation rate, with average prices up 14.7% to $383,399 in November 2024 following a surge in first-time buyer activity.
- Condos: The average condo sold for $287,995 in November 2024, up 7.6% from the previous year. Condo supply constraints in urban centers placed upward pressure on prices.
The data shows that detached homes saw the slowest appreciation but still experienced significant gains. Meanwhile, the benchmark price index for all residential properties increased 5.3% annually. Well-balanced demand across market segments should continue driving steady price growth.
Key takeaways on the Alberta housing market
The Alberta housing market sustains positive momentum thanks to economic diversification and an expanding population. Home values are trending higher, with towns showing particular vibrancy.
Sales activity and prices are rising across market segments, from luxury detached homes to affordable condominiums. Most urban centers remain undersupplied, keeping conditions favorable for sellers.
Robust employment and in-migration seem likely to extend recent tailwinds. While risks like supply shortages and rate hikes warrant caution, fundamentals support sustained housing appreciation.
For prospective buyers and real estate investors, Alberta retains appeal thanks to moderate affordability and bullish economic prospects. The province seems poised to deliver above-average returns over the mid-term horizon.
FAQs
What factors are driving the growth of Alberta's housing market in 2025?
Several factors contribute to the growth of Alberta's housing market in 2025, including a diversifying economy, a growing population, relatively affordable housing prices compared to other major Canadian cities, and a stable job market.
What are the benefits of investing in Alberta's real estate market?
Investing in Alberta's real estate market offers several benefits, such as the potential for a steady appreciation of property values, a strong rental market driven by a growing population, and opportunities for new development projects.
How do Alberta's major cities compare in terms of housing affordability?
While home prices in Alberta's major cities have been increasing, they remain more affordable compared to other major Canadian cities like Toronto and Vancouver. Edmonton and Calgary, in particular, offer excellent value for money, making homeownership more accessible to a wider range of buyers.
Are there any risks associated with investing in Alberta housing market?
While Alberta's housing market shows promise, there are risks to consider, such as potential resource volatility, economic fluctuations, and shifts in market conditions. It's essential to conduct thorough research and consult with real estate professionals to make informed investment decisions.
What are the most popular property types in Alberta's housing market?
Detached homes, semi-detached homes, townhouses, and condominiums are all popular property types in Alberta's housing market, catering to various buyer preferences and budgets.
What should first-time homebuyers consider when looking to purchase a home in Alberta?
First-time homebuyers in Alberta should consider factors such as their budget, desired location, property type, future growth potential, and access to amenities. Working with an experienced realtor can help you navigate the home-buying process and make informed decisions.
How does Alberta's population growth impact the housing market?
Alberta's growing population drives demand for housing as more people require accommodations. This increased demand can lead to higher home prices, lower inventory levels, and a more competitive market for buyers.