2021 Calgary Real Estate and Rental Market Review
Dec. 31, 2021 - Written by Jamie Palmer
Wow! What a year 2021 has been!
In terms of real estate, 2021 was a banner year, to say the least! Rock-bottom interest rates fueled a whopping 71% increase in the number of sales compared to 2020, with 27,000 properties sold, setting a new record for Calgary. The benchmark price for a detached single-family home is now over $585,000, having increased 8.5% year-over-year. Even apartment condos are starting to recover, with sales up 73% year-over-year and the average price of $266,868 up 5.79% compared to last year (although this is nowhere near the 2014 high of $324,122).
What this means for rental properties…
In regards to rental properties and property management, demand continues to be strong in the single-family market with room to increase rents. The average rent for a detached home in Calgary has increased 4.8% from $1905 in 2020, to the current average rent of $1998 (average rent for a 3 bedroom 2.5 bathroom home in Calgary, prices obviously vary by neighbourhood). While apartments saw an increase of 3.2% from $1742 to $1798 for a two-bedroom, two-bathroom apartment.
So what can you expect for 2022?
There are numerous projects that were announced in 2021 that are bringing billions of dollars of investments into Calgary, from an Amazon Webserver Hub to Atco and Suncor’s Hydrogen production partnership. These investments bring with them well-paying STEM jobs and the jobs bring people who will need housing. It is anticipated that Calgary real estate will increase 6% in 2022. For real estate investors who put 25% down on a property, that translates into a 24% return on investment (check out our free e-book on real estate investing to see the calculations). At the same time, increased prices and anticipated interest rate hikes will make it harder for first-time homebuyers to break into the market, which will increase demand for rental properties. This in turn should translate into increased rents. All and all, 2022 should be a strong year for the Calgary real estate sector.