Edmonton Real Estate Market

[occidentalcapital]

So let's get this straight. Edmonton has both the highest salaries in Canada and the least expensive housing in Canada. Those things don't normally go together. If you want to get ahead... Edmonton's the last place in Canada where you can do that.

I wonder how long this opportunity will last for people.

 

[itom987]

Edmonton is becoming one of the last places where the American dream is still possible.

 

[BASE]

Edmonton is becoming one of the last places where the American dream is still possible.

In terms of big cities in Canada it is the biggest where that is possible yes. Still lots of places a little smaller than Edmonton that have similar affordability in Canada and many bigger and smaller in the USA with the same or better affordability.

 

[Kosy123]

I'd argue that Edmonton can continue this trend of high wages, low housing costs for quite a while tbh. I still think that our significant rental unit stock can absorb enough people that it won't be too much of an issue while new construction catches up, at least in my opinion. The next 3-4 years could prove me extremely wrong.

 

[occidentalcapital]

In terms of big cities in Canada it is the biggest where that is possible yes. Still lots of places a little smaller than Edmonton that have similar affordability in Canada and many bigger and smaller in the USA with the same or better affordability.

Affordability yes but often not salaries at Alberta levels. We're pretty unique in that we have both affordability and high average wages.

 

[Munanyo]

So let's get this straight. Edmonton has both the highest salaries in Canada and the least expensive housing in Canada. Those things don't normally go together. If you want to get ahead... Edmonton's the last place in Canada where you can do that.

I wonder how long this opportunity will last for people.

This is especially true and is why I currently live and work here.

Edmonton is pretty much the last major city in Canada where the quintessential middle class dream is achievable with some hard work. Calgary was like that for a long time, however that's diminishing rapidly with every passing year (go on MLS and see for yourself how sky high the prices have gotten in their suburbs). Yes Winnipeg and Quebec City are still affordable too, but there's a host of reasons why that is and both are quite a bit smaller than Edmonton. Most people have little intention or desire to pack up and settle down in those cities.

I also think Edmonton will stay relatively affordable for the foreseeable future. It's the reason why you see so many BC and Ontario plates these days. Knowing that I can actually maybe achieve a decent size home one day, with a middle of the road income, while having access to the amenities of a big city, are why myself and my partner have stuck around here. And while we could technically afford a home now, my partner is in school and so everything will be put on hold until my partner is done. However, it does worry me about what things could look like in a few years.

If we got priced out I'm not sure we would stick around. People are moving here because of the potential of high wages and affordable homes and not because of the culture, lifestyle, weather etc. If affordability were to be eliminated, Edmonton doesnt become as desirable a place to settle down if you're looking for a new home. Being from Ottawa, I was intending on going back, however I witnessed before my eyes in just a few short years how the real estate market became out of touch there and I refuse to ever pay $650,000 for a cookie cutter shitty townhome in a far flung suburb.

 

[Oilers99]

With this city council continuing to restrict supply, you will see what happens to Edmonton's affordability index. The reason Calgary has shot up so quickly was essentially the 8-10 year prohibition on suburban approvals under Nenshi. That supply was restricted and has not caused the scenario where there is not enough inventory to meet the demand along with the import of so many BC and Ontario residents.

 

[occidentalcapital]

With this city council continuing to restrict supply, you will see what happens to Edmonton's affordability index. The reason Calgary has shot up so quickly was essentially the 8-10 year prohibition on suburban approvals under Nenshi. That supply was restricted and has not caused the scenario where there is not enough inventory to meet the demand along with the import of so many BC and Ontario residents.

That's very interesting.

Of course we have bedroom communities here so potentially would be felt less here.

Population is also growing faster now than it was back then so you might still see underlying price pressures even with bedroom communities growing.

 

[Oilers99]

That's very interesting.

Of course we have bedroom communities here so potentially would be felt less here.

Population is also growing faster now than it was back then so you might still see underlying price pressures even with bedroom communities growing.

The spread between Edmonton proper and the bedroom communities could grow significantly.

 

[IanO]

Monthly Housing Starts and Other Construction Data Tables

Download this data to learn more about actual and seasonally adjusted housing starts by geography and dwelling types. tivity.

www.cmhc-schl.gc.ca

 

[David A]

This is especially true and is why I currently live and work here.

Edmonton is pretty much the last major city in Canada where the quintessential middle class dream is achievable with some hard work. Calgary was like that for a long time, however that's diminishing rapidly with every passing year (go on MLS and see for yourself how sky high the prices have gotten in their suburbs). Yes Winnipeg and Quebec City are still affordable too, but there's a host of reasons why that is and both are quite a bit smaller than Edmonton. Most people have little intention or desire to pack up and settle down in those cities.

I also think Edmonton will stay relatively affordable for the foreseeable future. It's the reason why you see so many BC and Ontario plates these days. Knowing that I can actually maybe achieve a decent size home one day, with a middle of the road income, while having access to the amenities of a big city, are why myself and my partner have stuck around here. And while we could technically afford a home now, my partner is in school and so everything will be put on hold until my partner is done. However, it does worry me about what things could look like in a few years.

If we got priced out I'm not sure we would stick around. People are moving here because of the potential of high wages and affordable homes and not because of the culture, lifestyle, weather etc. If affordability were to be eliminated, Edmonton doesnt become as desirable a place to settle down if you're looking for a new home. Being from Ottawa, I was intending on going back, however I witnessed before my eyes in just a few short years how the real estate market became out of touch there and I refuse to ever pay $650,000 for a cookie cutter shitty townhome in a far flung suburb.

If you buy now (or in the near future), then you won't get priced out here, will you?. I am sure there are people years ago living in places like BC or Ontario when they were more affordable that could have bought, but for whatever reasons they didn't and now they are priced out and are kicking themselves. Yes, prices here have not changed for a number of years, but you don't always get a warning of a big change. You might want to look what happened to housing prices here from around 2005 to 2007 to see how quickly things can change - btw that happened after a number of years of not much change.

 

[Munanyo]

If you buy now (or in the near future), then you won't get priced out here, will you?. I am sure there are people years ago living in places like BC or Ontario when they were more affordable that could have bought, but for whatever reasons they didn't and now they are priced out and are kicking themselves. Yes, prices here have not changed for a number of years, but you don't always get a warning of a big change. You might want to look what happened to housing prices here from around 2005 to 2007 to see how quickly things can change - btw that happened after a number of years of not much change.

No as of now we're not priced out (and probably won't be for awhile) hence why we're holding out because we have a pretty solid rental situation that we don't mind having for a couple more years. As well the interest rate hike pretty much solidified our decision to wait this out and see where things may or may not go.

And trust me, I completely hear what you're saying. It seems like overnight Ottawa went from having a slow and steady housing market situation, to one that went completely bonkers in the span of 3 years. It's been disheartening to see most of my friends there be more or less priced out of the market, or consider buying a condo (which most do not want).

 

[ChazYEG]

or consider buying a condo (which most do not want).

I honestly see this kind of feeling regarding condos as very, very concerning... But it goes to speak to the complicated cultural shift we need to work on to get rid of car dependancy and suburban sprawl.

 

[Munanyo]

I honestly see this kind of feeling regarding condos as very, very concerning... But it goes to speak to the complicated cultural shift we need to work on to get rid of car dependancy and suburban sprawl.

Yeah and if cities want more people to seriously consider settling in, or staying in condos long term, then they have to incentivize them by making urban living practical, easy and enticing. Unfortunately, that is far from the case with the exception of the big 3 in Canada.

 

[David A]

No as of now we're not priced out (and probably won't be for awhile) hence why we're holding out because we have a pretty solid rental situation that we don't mind having for a couple more years. As well the interest rate hike pretty much solidified our decision to wait this out and see where things may or may not go.

And trust me, I completely hear what you're saying. It seems like overnight Ottawa went from having a slow and steady housing market situation, to one that went completely bonkers in the span of 3 years. It's been disheartening to see most of my friends there be more or less priced out of the market, or consider buying a condo (which most do not want).

I hope it all works out. I am not in the real estate industry, why I bring this up is I had delayed buying in that early 2000's period because there seemed to be in no hurry and it wasn't the right time for me.

Well, the market changed quicker than I expected and then when I wanted to, I couldn't buy anymore. Fortunately, I got another chance years later, but I have learned from that experience.

Edmonton has been kind to buyers for a long time, but don't count on that lasting forever.