As Alberta’s economy roars back to life, its real estate market is catching the attention of investors and homebuyers alike. Calgary and Edmonton are experiencing renewed growth, driven by affordability, job creation, and expanding infrastructure. Compared to high-cost markets like Vancouver and Toronto, Alberta stands out as a haven for those seeking strong returns and liveable prices. For seasoned investors and first-time buyers alike, Alberta’s real estate market offers a compelling mix of opportunity and stability heading into 2025. 

Let’s explore what’s fuelling this resurgence and why now could be the perfect time to invest in Wild Rose Country. 

A Strong Economy Drives Real Estate Growth 

Alberta’s economic rebound is a key driver behind its real estate boom. Thanks to a combination of strong oil prices, a burgeoning tech sector, and investment in renewable energy, the province is enjoying steady economic growth.  

Calgary, long known as Canada’s energy capital, is diversifying its economy with a focus on technology and clean energy. Highlights include: 

• Amazon Web Services (AWS) opened a new data centre region in Calgary late last year, solidifying the city as a tech hub for cloud computing and innovation. 
   
• Platform Calgary launched a $500-million innovation district downtown in 2022, supporting over 1,000 startups and creating a collaborative space for entrepreneurs. 
   
• Greengate Power Corporation completed the Travers Solar Project, the largest solar farm in Canada, located southeast of Calgary, contributing significantly to renewable energy capacity. 

Meanwhile, Edmonton’s economy thrives as a healthcare, education, and logistics hub. Examples include: 

• The University of Alberta Hospital is one of the top teaching hospitals in Canada, with advanced medical care and cutting-edge research. 
   
• The Health City initiative drives innovation in life sciences and health technology, attracting startups and fostering partnerships that contribute to Edmonton’s thriving healthcare ecosystem. 
   
• The Cargo Village at Edmonton International Airport has become a key logistics hub, with advanced infrastructure supporting cold storage, agricultural exports, and e-commerce, connecting Edmonton to global markets. 

This economic growth, coupled with international market confidence in Alberta, has translated into job creation, attracting professionals and families to the province. Though Alberta’s unemployment rate currently runs above the national average, the province’s ongoing economic diversification efforts and job creation in sectors like technology, healthcare, and clean energy are helping to drive recovery and long-term growth. Population growth, bolstered by interprovincial migration, is further fuelling demand for housing in Calgary and Edmonton. 

As these cities continue to expand their economic bases, their real estate markets are benefitting from a steady influx of new residents, creating long-term stability and growth potential. 

Affordability: A Rare Find in Canada

Compared to the sticker shock of Vancouver or Toronto, Alberta’s affordability is a breath of fresh air. According to the Canadian Real Estate Association (CREA), the median price for a single-family home is $690,000 in Calgary, and $490,000 in Edmonton. In contrast, Greater Vancouver’s benchmark single-family home price exceeds $2 million. It goes without saying that this substantial price gap makes Alberta a compelling option for both first-time buyers and investors.

For investors, Alberta’s lower entry prices mean better cash flow opportunities in rental properties, particularly in cities like Edmonton, where vacancy rates remain healthy but rents are climbing steadily. For buyers, the ability to purchase a single-family home at a fraction of the cost seen in other major cities provides an opportunity to enter the market without sacrificing quality of life.

Expanding Infrastructure Fuels Growth

An ongoing commitment to infrastructure in both Calgary and Alberta also continues to drive real estate investment in Alberta. Both cities are expanding their transit systems, including Calgary’s Green Line LRT project and Edmonton’s Valley Line Southeast extension, which are set to improve urban connectivity and accessibility. These developments make neighbourhoods further from city centres more appealing to buyers and renters.

Additionally, ongoing investments in healthcare and education infrastructure, such as new hospital projects and expansions to post-secondary institutions, are further boosting the appeal of these cities. These projects not only support population growth but also create jobs, which in turn drive housing demand.

Rental Market Resilience

For those considering Alberta as a destination for rental property investment, the province’s rental market offers promising potential. Both Calgary and Edmonton have seen stable growth in rental demand, driven by population increases and relatively affordable living costs. As reported by CBC, the Canadian Mortgage and Housing Corporation (CMHC) projects that Calgary’s rental vacancy rate will drop to 1.1% this year and 1% in 2025, indicating a need for more rental housing options.

Rents in Alberta are rising steadily but remain far more affordable than in Vancouver or Toronto. A two-bedroom rental in Calgary averages $1,850 per month, while in Edmonton, it’s $1,600. This combination of rising rents and lower purchase prices creates opportunities for investors to achieve strong returns.

A Prime Opportunity for First-Time Buyers

For first-time buyers, Alberta offers a rare chance to enter the housing market without the immense financial barriers seen elsewhere in Canada. Calgary and Edmonton provide a range of housing options, from modern condos in revitalized downtown cores to spacious suburban homes perfect for families. Declining interest rates, combined with Alberta’s affordability, make these cities especially appealing to younger buyers looking to build equity.

Risks to Consider

While Alberta presents exciting opportunities, there are also risks for consideration. The province’s economic performance remains somewhat tied to the volatile energy sector, and changes in oil prices could impact job growth and housing demand. However, Alberta’s ongoing diversification efforts aim to mitigate these risks, making the market more resilient than in past years.

Investors should also consider regional differences. Calgary’s market is more competitive and offers higher appreciation potential, while Edmonton’s lower prices make it a better fit for cash-flow-focused investors. Both markets have their strengths, so understanding local dynamics is crucial.

Why 2025 Could Be Alberta’s Year

As Canada’s real estate market continues to evolve, Alberta’s position as a leader in affordability and opportunity becomes increasingly clear. Calgary and Edmonton offer a unique combination of strong economic growth, expanding infrastructure, and accessible housing prices that make them prime targets for investors and first-time buyers alike.

With population growth in Alberta expected to continue and rental markets showing resilience, the province’s real estate renaissance is more than just a short-term trend. It’s a sign of Alberta’s ability to adapt and thrive, providing both stability and opportunity in an unpredictable market. For those ready to act, Alberta represents a chance to secure real estate in a market that’s affordable, growing, and full of potential.