Condo demand has been strong throughout the year in Calgary, a result of tightening affordability in the rental market and increased inter-provincial migration. According to Rentals.ca, annual rent growth in Calgary outpaced every other large market in September, increasing by 14.3%, compared with Vancouver and Toronto which experienced annual rent growth of just 7.7% and 2.3% respectively.
As renting has become more expensive many have turned to the condo market, which has in turn pushed prices upwards. In September, the benchmark price for a condo reached $312,800 – 15% higher than in September of last year according to the Calgary Real Estate Board. The popularity of this property type isn’t likely to slow down any time soon, so for renters considering a transition to condo homeownership, how do the costs compare?
Enjoying our content? Subscribe to our free weekly newsletter to get real estate market insights, news, and reports straight to your inbox.
To find out how rent costs compare to those of homeownership, Zoocasa compared the average monthly cost of rent with the benchmark condo price in 8 regions of the City of Calgary. We then calculated the minimum down payment for each and found how many months of rent the minimum down payment is equal to.
For the purpose of this study, the number of months of rent needed for the minimum down payment was determined by assuming the renter does not pay rent during this time. The average rent was sourced from Rentals.ca by combining the average rent for a one-bedroom rental and a two-bedroom rental, and benchmark condo prices were sourced from the Calgary Real Estate Board.
You Can Save for a Condo Down Payment in Less than 9 Months in All of Calgary
The down payment savings timeline is shortest in East Calgary, where the months of rent the minimum down payment is equal to is just 5.7 months. East Calgary had the lowest benchmark condo price in all of Calgary in September at $222,000, which would require a minimum down payment of $11,100.
The next most affordable areas of Calgary are North East Calgary, North West Calgary, and South Calgary. North East Calgary had a benchmark condo price of $269,000 and would require 6.9 months of saving to come up with the minimum down payment of $13,450. The average renter in both South Calgary and North West Calgary would need to save for 7.3 months to come up with the minimum down payments of $14,260 and $14,355 respectively.
Even the most expensive areas in Calgary, South East Calgary and the City Centre, are generally affordable compared to other major rental markets. The average renter would need to save for 8.5 months in South East Calgary to be able to come up with the average minimum down payment of $16,565. Similarly, in the slightly more expensive City Centre, It would take the average renter 8.6 months to save up for the minimum down payment of $16,570.
The Contrasting Metropolises of Calgary and Toronto
Stats Can estimates that in 2022/2023, 37,379 Ontarians moved to Alberta, making it the hottest province for Ontarians to move to. The lower cost of living is undoubtedly a driving factor for those moving to Alberta and substantially lower housing costs are a huge part of that.
In a recent Zoocasa report analyzing rent and condo homeownership costs in Toronto, the most affordable neighbourhood would require the average renter to save for 9.5 months to come up with the minimum down payment while in the most expensive neighbourhood, the average renter would need to save for 93.3 months. Despite condo costs rising in Calgary, the condo market in Calgary is thousands of dollars cheaper than in Toronto, and in the most extreme case, it is hundreds of thousands of dollars cheaper.
The average renter who wants to live in the city centre of Toronto (C01: Downtown, Entertainment District, CityPlace, Liberty Village) would need to save for 19.2 months to be able to afford the minimum down payment of $58,090, which is more than $40,000 more expensive than the minimum down payment for the City Centre in Calgary. Those who are priced out of Toronto, both investors and homeowners, might want to consider condo options in Calgary that offer more accessible entry points into homeownership.
Want to find a condo in your area? Give us a call! Our experienced real estate agents can answer any questions you have about the home-buying process and can give you market insights tailored to your local area.
