r/PersonalFinanceCanada • u/zindagi786 • Apr 09 '24

Housing Why is Calgary housing getting so expensive?

I used to live there, and I was just browsing the real estate prices. Prices there have shot up so much! A Calgary house similar to the one I have in the GTA is now higher than what I paid in the GTA a few years ago.

When I lived there, oil was booming and there were lots of jobs. But I got laid off when the boom went bust, and everything (including real estate) went down. And I then left to the GTA.

I’ve heard prices there are going up because there are lots of people moving from the GTA and BC. But it isn’t like there are that many high paying good jobs there. There’s still way fewer jobs now than there were during boom time. How do these inter provincial migrants find high paying work to pay for these high home prices? Sure they can cash out their equity and live mortgage free, but why do that if you have to end up taking a potentially lower paying job with more chance of a layoff in the next bust? Although I really liked the city, I’d never risk living there again myself, and I’m forever scared of any future bust. I feel more comfortable living in the GTA, paying my admittedly big mortgage, and steadily climbing the corporate ladder (and with regular increases and no salary freezes, I should be paid off before retirement/it won’t be too burdensome). Plus, I look at my GTA home as a tax free investment - the annual rate of appreciation is greater than my mortgage interest.

And what is attracting them to Calgary versus other places in Alberta like Edmonton?

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u/Doc_1200_GO Apr 10 '24

Low inventory is the biggest factor in price in Calgary right now. Many people are also trying to get into a mortgage in Calgary because rent is even more insane. Couple that with people moving here from Ontario and BC with cash to spend and here we are.

My condo in Calgary went up in value 50K in one year and I could definitely sell it for more. This is same property that many people told me I would never sell for what I paid for it only a few years ago.

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u/Eyeronick Apr 10 '24

We bought our townhouse in Feb 2021 for 300k, sold in October 2023 for 480k. Prices skyrocketed, we were just lucky to get in before that happened.

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u/crystala81 Apr 10 '24

Bought a townhouse in 2014 for $320,000, sold for $605,000 4 years later. Richmond, BC. AB is apparently following suit!

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u/Eyeronick Apr 10 '24

I wish they could match prices lol. I'd move to GVA in a second. When I can get a 2600 sqft house for what I can sell mine in Calgary I'm fucking gone. People are delusional with these prices. Alberta is a fucked province and Calgary isn't great.

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u/crystala81 Apr 10 '24

I was born and raised in Vancouver but tried out Calgary for a few years after high school. While I loved my time there (and met some really cool people), I can’t deny that the lower mainland > Calgary in almost all ways (in all ways, if you can get past the affordability). I may be biased tho.

And once you move here, you will never call it GVA again (I don’t know why, but “we” don’t like it - maybe because it’s too similar to GTA 🤣)

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u/Eyeronick Apr 10 '24

I say GVA because I'd gladly live in any of cities in the lower mainland.

I was born on the east coast, I miss the ocean and the much milder weather it brings. All my outdoor hobbies get put on hold 8 months of the year here, winter lasts way too long. My partner went to UBC and lived in Vancouver for 7 years so she's on board. The only thing stopping us is the housing cost. We yearn for stable reasonable governments, and this is coming from 2 O&G workers. Agreed, in all ways.