Five Things Newcomers to Canada Need to Know About Housing in Alberta
Alberta continues to experience an unprecedented population boom—fuelled in large part by immigration—that is directly impacting housing and rent prices.
So, we've come up with five things (below) that we think newcomers to Canada and international students need to know about housing in Alberta.
Alberta is popular and growing
According to annual population estimates released by the Office of Statistics and Information, Alberta was home to 4.8 million people as of January 1, 2024. That is 4.4 percent higher than the same time last year. and adds up to an additional 202,324 people.
Here are the main and most populated cities in Alberta:
- Calgary. 1,019,942.
- Edmonton. 712,391.
- Fort McMurray. 76,000.
- Red Deer. Alberta. 73,593.
- Lethbridge. Alberta.70,617.
The Economic Intelligence Unit (EIU) has named Calgary as the fifth most livable city in the world, ahead of Vancouver (7th) and Toronto (12th).
5 Things to Know About Housing in Alberta:
1 - RENT PRICES IN ALBERTA:
According to the recent Rentals.ca National Rent Report concerning October 2024 rent prices, Calgary has the highest rents in the province. For example, a one-bedroom in Calgary costs $1,658, while a two-bedroom, popular with newcomers, costs $2,004.
Compare that to Vancouver, where a one-bedroom rented for $2,610 in October, or Toronto, at $2,380, and you can see why Alberta is still considered affordable.
A one-bedroom in Edmonton costs $1,384, and a two-bedroom costs $1,703. A one-bedroom in Lethbridge costs $1,330, and a two-bedroom costs $1,574.
According to Zumper, the average rent for a one-bedroom apartment in Red Deer was $1,499 as of October 2024, and for a one-bedroom apartment in Fort McMurray, according to Rentals.ca, it was $1,218.
Rent increases vary from city to city
While rents in Alberta remain well below prices in B.C. or Ontario, some are rising, and others are falling.
For example, the rent for a one-bedroom in Red Deer was up 18 percent from October 2023. Calgary's rent was down 4.3 percent over the same period, while Edmonton's rose 7.8 percent. Lethbridge saw rents rise about 10 percent in a year.
This trend is expected to continue, according to Rentals.ca and Rentsync.
According to the Rentals.ca report, asking rents for all residential property types in Canada averaged $2,152 in August, increasing by 1.2 percent over the past year.
To get a sense of pricing and what's available in Alberta, click on these Alberta cities to view some current rental listings:
Additional listings for Alberta cities can be found at Mainstreet Equity Corp.
2 - VACANCY RATES IN ALBERTA:
The vacancy rate is the percentage of all vacant or unoccupied units available for rent in Alberta at a particular time. For renters in Alberta, a reasonable vacancy rate (which usually but not always creates possibly lower rent prices for newcomers renting in Canada) is around three percent.
With immigration and interprovincial migration, the vacancy rate in Alberta is declining, which, unfortunately, for newcomers, means higher rent prices.
The overall decline in the national vacancy rate reflects widespread tightening across many of Canada’s rental markets.
Migration into Alberta turned around sharply in 2024 and significantly drove rental demand. This turnaround was the result of both higher interprovincial and international migration.
During the pandemic, economic opportunities shrank, and more Canadians moved out than into Alberta.
For example, in Edmonton, with its improved labour market conditions, record net international migration, and net interprovincial migration at a 10-year high, rental demand outpaced increases in rental supply.
The vacancy rate for purpose-built rental apartments in Edmonton was 2.4 percent in 2023, down from 4.3 percent in October 2022 and 7.3 percent in October 2021, according to the latest Rental Market Report from CMHC.
In Calgary, the vacancy rate dropped to 1.4 percent from 2.7 percent, the lowest since 2014. Again, record migration into Alberta largely supported rental demand, while increases in supply were not enough to balance it out.
Also, vacancy rates can vary significantly within a city's various neighbourhoods, so check that out.
So, newcomers should expect low (and falling) vacancy rates across Alberta.
3 - HOUSE PRICES IN ALBERTA:
Housing prices are also rising in Alberta for newcomers looking to buy a home, again driven by the population surge. Newcomers need to be aware of housing and rental prices before settling in a city to avoid a costly relocation when they become homeowners.
According to the WOWA Market Report Summary for October 2024:
- Alberta’s benchmark* home price was $508,700, down 5.9% year-over-year.
- Average** home prices in Alberta have increased by 19.5% year-over-year to $544,752.
- Calgary's average home price increased by 13% year-over-year to $621,943.
- Edmonton's average home price increased by 12% year-over-year to $440,366.
- Red Deer's average home price increased by 0.4% year-over-year to $357,625.
- Lethbridge's average home price increased by 4.0% year-over-year to $381,363.
- Medicine Hat's average home price increased by 3.6% year-over-year to $350,823.
- Fort McMurray's average home price increased by 18% year-over-year to $353,327.
As of November 27, the lowest mortgage rate in Alberta, according to Wowa, is 4.09% for a 3-year fixed mortgage.
The Calgary Real Estate Board reported that home sales in October were 2,174. That's above September’s figures and 24% above long-term trends for October.
Housing in Alberta remains relatively affordable compared to other Canadian regions.
For example, the average price for all residential properties in Metro Vancouver in August was $1,172209. This is a 1.9 percent decrease from October 2023.
In October, the average selling price of a home in Toronto was $1,060,300, a decrease of 3.3 percent compared to October 2023.
As you can see, Alberta remains a bargain for homebuyers.
4 - STUDENT HOUSING IN ALBERTA:
Many of Alberta’s higher education institutions have dedicated housing programs for their students, and some also offer options for families to live on campus.
However, student (domestic and international) demand for rental accommodation across the province is high and outstrips supply.
For example, the University of Calgary residences were full in September 2024, with a waiting list nearing 750 students. The Southern Alberta Institute of Technology is also full, with about 100 students on a waiting list.
Student advocates are calling for more purpose-built student residences.
Be aware that on-campus housing options vary by school. So be sure to consult your institution for information about their residence programs, including application deadlines for international students.
The Canadian government recently reduced the number of international students allowed to study in Canada, partly because of the housing crisis. This will impact rental housing availability and pricing in some cities in 2025.
Your school can also help you find accommodation if you live off campus. But again, there is competition for rental accommodations, with prices rising each month and vacancy rates decreasing.
Some students opt for short-term rentals (Airbnb) as they continue their search for a longer-term rental.
Renting a room from an Alberta homeowner can also be an option for student
The University of Calgary has issued an appeal asking Alberta homeowners to consider renting out spare bedrooms. It's estimated by homeshare company Sparrow that there are 12 million unused bedrooms in Canada.
Sparrow and Prepare for Canada recently partnered to provide an easy, safe, and secure room rental program for (international) students. Registration is free.
Banff is a top Alberta tourist attraction
(Drone footage by Lvfree Adventures)
5 - LIVING IN ALBERTA:
When you find a place to rent in Alberta, you'll need a job or money to pay for it.
A recent Statistics Canada Labour Force Survey showed Alberta's jobless rate in October 2024 was 7.3 percent, down 2.4 percent from September.
The national unemployment rate was 6.5 percent in October 2024.
Alberta's minimum wage is $15 per hour, and the province has not announced plans to increase it.
According to ZipRecruiter, the average salary in Alberta is $50,631 annually. The average hourly wage is $20.71
Here's a link to various jobs in Alberta and what they pay.
* The benchmark price estimates how much a certain type of home is worth on the MLS®. It is calculated by the Housing Price Index (HPI), an ongoing record that tracks aggregate sales of similar homes for any given area.
** Average sales price measures all properties sold in a given area during a given period. It is calculated by adding up all sale prices for properties purchased during this time period and dividing by the total number of homes sold.
*** Rent and home prices were accurate when this article was published but may change over time.
SOURCES:
Statistics Canada Labour Force Survey, CMHC, Zumper, Rentals.ca, ZipRecruiter, Wowa, Rentsync
If you have a question, please email us at rentals@prepareforcanada.com
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
*All sources are cited and credited where possible.
© Rentals for Newcomers 2024