Edmonton is a good example that, although housing affordability improved across the country as mortgage rates softened with the Bank of Canada easing monetary policy, affordability can be a blessing and a curse. When it comes to residential housing, including listings, sales, condos and rentals, Edmonton being on many lists as “the most affordable major city in Canada” is both a potent bragging right and a cautious warning.
“The real estate and rental markets in other Canadian areas are significantly more expensive, so that creates more Edmonton demand,” explains Melanie Boles, chair of REALTORS® Association of Edmonton (RAE).
Several recent housing surveys show that, in terms of sales and rentals, Edmonton is a hot draw and magnet for migration from other areas, particularly Vancouver, Toronto and even Calgary.
They’re coming for the affordability.
However, Realtors, developers, landlords and other real estate professionals caution that Edmonton’s affordability edge is likely to dip as more people move to Edmonton, mostly for the affordable housing.
For resales, Boles notes that Edmonton is still a seller’s market.
“Market conditions still favour the seller, mainly due to a lack of available inventory. The gap is narrowing between how many properties are being listed versus the number of sales but for a seller with a great property that shows really well, combined with the relative affordability of Edmonton prices, the market is their oyster.”
Tom Shearer, broker with Edmonton’s Royal LePage Noralta Real Estate, emphasizes Edmonton’s real estate bragging rights.
“Affordability and Edmonton’s attractive quality of life, compared to other Canadian markets, are driving factors for buyers migrating to our city. Of course, mortgage rates are also a factor, but the rate drops are small and gradual.”
Boles agrees that, positive or negative, mortgage rates are always a factor for all types of housing, “Although we’ve seen strength in sales and prices all year, well before interest rate cuts started to happen. Some buyers are, or were, holding out for the rate cuts to start, at least to save that little bit extra in their budget, but the peak in number of sales for the Greater Edmonton Area actually happened in May before the rate cuts were announced.”
“However, there is a sentiment from first-time home buyers, or those hoping to become homeowners one day,” she adds, “that they need to get into the market sooner than later, before prices get out of control.”
According to recent Edmonton MLS re-sale stats and trends, housing prices are up and expected to keep rising with growing demand.
The median price of a single-family detached home in Edmonton increased to $497,200 in the second quarter of 2024, while the median price of a condo increased to $201,600.
Considering all housing types – from single-family detached homes, townhouses, row housing, apartments and condominiums and new developments – the aggregate price of a home in Edmonton from April to June this year was $450,600, a 3.7 per cent increase over the same period last year. Across Canada, the aggregate price of a new home was $824,300, a 1.9 per cent increase from the same time last year.
Partially migration driven demand, increasing supply and affordability as well as the city’s new zoning bylaw that allows for higher density across neighbourhoods, Edmonton is having a condo boom.
“We have seen close to a 40 per cent increase in activity in both rowhouse/townhouse and apartment condo sales this year, compared to last year,” Shearer points out. “Prices for townhouse condos are up around 11 per cent compared to last year, while apartment condos are up 5 per cent.”
Affordability and availability are also factors in Edmonton’s dynamic rental market. Migration luring people from other areas combined with aging demographics opting for renting over home ownership is turbocharging Edmonton’s rental market.
According to the Alberta Residential Landlord Association (ARLA), the voice of Alberta’s residential rental industry, the supply of rental units in Edmonton is experiencing higher growth rates compared to other major cities, and Edmonton leads in rent affordability with some of the lowest rent prices and smallest increases over the past decade.
“Vacancy in Edmonton is low currently as the demand for rentals continues to increase,” says Donna Monkhouse, executive director of ARLA. “The most recent stats show Edmonton’s average one bedroom rent at $1,340 and a two bedroom at $1,640. Comparing rents with Calgary, a one bedroom there averages $1,840 and a two bedroom is $2,260. Vancouver is at $2,700 for a one bedroom and $3,780 for a two bedroom.”
“Edmonton continues to be one of the lowest and most affordable places to rent across Canada,” she explains, “with Regina and Saskatoon just slightly lower. Availability across Canada continues to be low as demand for rental housing is dramatically increasing.”
While the Edmonton rental market is dynamic, Monkhouse highlights some challenges for developers and landlords.
Landlords continue to struggle with increasing costs from taxes, mortgages, interest rates, maintenance costs, utilities, etc. Over the years, rents have been relatively stable, but the expenses continue to increase. This has been a challenge for landlords and given the current rental landscape, how they are able to recover some of those increasing expenses.”
A key factor in Edmonton’s rental market is multi-family properties. Cairo Development is earning a reputation for being a leader for building Edmonton multi-family rentals. The company has completed almost 500 units in 2024, with a balance of 300 units set to finish by spring 2025. In 2025, Cairo is starting an average of 900 units in different locations, like Century Park, Jasper Avenue and other Edmonton neighbourhoods.
Ash Mahmoud, president, Cairo Development is positive and enthusiastic about Edmonton’s rental market and the viability of multi-family rentals.
“We can see low vacancy rates in terms of multi-family purpose-built rental, as it is one of the lowest across the country. Also, the effect of more new built units coming to the market for rental will lead to more competition in terms of price, amenities, and locations.”
He explains an important advantage about building multi-family is the ability to create more value with the same allocation of land and almost the same effort with a very high return. With the current market and not enough supply of condo housing, and the fact that interest rates are high, he suggests many people prefer flexibility for job hunting.
“It makes the rental multi-family business a very stable method of real estate development, compared to all other assets. Two factors causing the surge of multi-family housing in Edmonton are the amount of inter-provincial immigrants and newcomer immigrants coming to Edmonton, and also Edmonton’s ability to keep the unemployment rate almost stable. Oil prices are fluctuating but still positive, and the oil and gas industry has been doing well, at least for the last two years, creating a good number of jobs and stability for the Edmonton economy.”
Mahmoud concludes that Edmonton has one of the best rental rates listed on the CMHC’s affordability index.