When it comes to investing in real estate in Alberta, the two major cities that invariably come to mind are Calgary and Edmonton. Both cities have their unique characteristics, and understanding these differences is key to making a savvy investment decision.
Price Points and Affordability
One of the most significant differences between the two cities lies in their housing costs. Buying a house in Edmonton typically costs less than in Calgary, with benchmark residential prices in Edmonton remaining relatively flat compared to Calgary (source). The median house price in Edmonton is about 30% lower at around $368,576, compared to Calgary's (source). This difference in price points might make Edmonton more accessible for first-time investors or those with a smaller budget.
Market Inventory and Opportunities
Another critical factor to consider is the availability of properties in each city. Edmonton has a larger pool of buildings, offering more inventory and, consequently, more opportunities for investors (source). In contrast, Calgary has fewer properties to choose from, potentially leading to more competition among investors.
Economic Factors and Job Market
The economic landscape and job market in each city also play a role in their respective real estate markets. Calgary, known for its energy and finance sectors, has more jobs than Edmonton (source). This could potentially lead to higher demand for housing in Calgary, driving up rental rates and property values.
On the other hand, Edmonton has a larger service sector, which might attract a different demographic of renters or buyers.
In Summary
Both Calgary and Edmonton offer excellent real estate markets with their unique advantages. While Edmonton's lower house prices and larger inventory may appeal to some investors, others might be drawn to Calgary's higher job availability and potential for higher returns due to its growing population and demand.
The decision between investing in Calgary versus Edmonton ultimately depends on your investment goals, budget, and risk tolerance. It's crucial to conduct thorough research and consider seeking advice from real estate professionals familiar with both markets to make an informed decision