Discover what Alberta’s real estate market has to offer through the lens of macroeconomics. Fun, we know.
Let's face it: the real estate scene in British Columbia has been nothing short of challenging in recent years. That's why homeseekers are now turning their attention to the neighbouring province of Alberta. With some macroeconomic factors pointing to a thriving market, Alberta is becoming a prime destination for those looking to relocate or invest outside of British Columbia. In this feature article, we'll dive into the key statistics that highlight why Alberta is a real estate haven worth considering.
Record population growth and increased investment: Alberta's power duo.
Alberta owes its remarkable population growth, in part, to its economic resurgence. By the end of 2022, Calgary's monthly population growth rate skyrocketed to over 0.30%, reaching an all-time high. This influx of new residents not only adds diversity and vibrancy to the city but also fuels the demand for real estate, creating a dynamic market ripe with opportunities.
Venture capital investment (VCI) has also been a significant driving force behind Alberta's real estate market. In 2022, the province witnessed a staggering surge in venture capital investment, reaching a remarkable $1.4 billion—the highest figure recorded in over two decades. This injection of capital signals a robust and thriving economy, which sets the stage for real estate growth and development.
Hold up – Can I actually afford a mortgage?
Here's the juicy part for all you British Columbians eyeing Alberta: the relative affordability of the housing market. Let's do a little comparison between Calgary and Vancouver, shall we? In 2022, the average value of a new mortgage loan in Calgary stood at $372,966, significantly lower than Vancouver's jaw-dropping figure of $588,121 – quite the contrast. This stark difference means that prospective buyers have a golden opportunity to secure their dream homes at more affordable prices without compromising on quality.
Financial freedom never felt so good.
Alberta has another ace up its sleeve when compared to British Columbia—the disparity in disposable income after monthly debt payments. In 2022, Calgary residents enjoyed an average disposable income of $2,166, while their counterparts in Vancouver were left with a mere $1,008. This substantial gap provides individuals in Alberta with more financial freedom and flexibility, empowering them to invest in real estate and secure their long-term future.
The age-old issue of supply and demand.
Now, let's not overlook the challenges that come with Alberta's real estate market. The surge in demand, coupled with a shortage of supply, has created a struggle for developers to keep pace with the growing need for housing. During the COVID-19 pandemic, many homeseekers found themselves with extra cash due to limited vacation opportunities. This led to a surge in the purchase of quick possession or already-built new homes. As a result, developers are striving to address the supply deficit and bring new homes to the market to meet the high demand.
An adventure worth pursuing.
Alberta offers an alluring opportunity for those seeking a transition from British Columbia. With record-breaking population growth, increased venture capital investment, more affordable mortgage loans, and higher disposable income, Alberta provides a promising and accessible real estate landscape. Despite the challenges of supply and demand, Alberta shines brightly as a destination that not only caters to housing needs but also fosters economic growth and prosperity.
Looking to explore the Alberta real estate market? Here are four agents who can help you embark on your exciting new adventure in Alberta: Adrienne Carlton, Lionel Sale, Spencer Stupka, and Mani Bagga.
