Townhome prices in Calgary are skyrocketing, leading the country, as the city faces continued population growth and housing market demand.
Townhome prices in Calgary are rising faster than anywhere else in Canada, with the average price rising 17 per cent from last year to $458,100, according to a report from real estate firm Zoocasa.
Zoocasa looked at the average price of townhomes in 20 Canadian cities and compared the price difference between February 2024 and the same month last year.
By comparison, Edmonton townhome prices increased 10.3 per cent year-over-year to $245,900.
“Probably the Canadian dream for most people is that if they choose to start a family, they want to own a single-family home at some point in their lives,” said Tom Albrecht, a real estate agent with RE/MAX First. I think so,” he said. “When we are in an affordability crisis, townhomes are a common choice for people, especially if they are starting new construction or downsizing.”
According to the Calgary Real Estate Board (CREB), 483 townhomes were sold in the city in April, an increase of 16.1 per cent compared to the same period last year.
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Mark Neustaedter, a real estate agent with eXp Realty, said the townhome market has become more accessible than detached and semi-detached homes, in part due to lower minimum down payments.
Zoocasa’s report notes that the average 5% down payment for a townhome in Calgary is $22,905, while the minimum down payment for a single-family home is more than $50,000.
“When you’re talking about isolation, it’s a whole other world. There are hundreds of thousands of dollars spread out there,” Neustaedter told Global News. “For first-time home buyers, 5% down may be a reasonable mortgage payment amount, even at current interest rates.”
However, supply continues to decline, and CREB notes that much of the decline is due to low-cost housing leaving the market.
“Our overall supply level is below $400,000, and previously about 40 percent of rowhouses were below that price point. Now it’s only around 20 percent,” said Anne-Marie Lurie, chief economist at CREB Global told the news. “We’re really seeing a shift. There’s just a lot less affordable product in that row-style property.”
Calgary had a record year for housing construction, with more than 15,393 homes built in the city in 2023. This was an 11% increase from the previous year.
Multifamily construction increased by 49 percent, and secondary suite development jumped by 43 percent compared to 2022.
“Many of those starts were on the high-density side, so we’re seeing more row construction and we’re seeing more affordable products come to market to meet that demand,” Lurie said. Told. “The question is how long will it take to complete that work?”
Calgary’s mayor, whose public hearings at City Hall began for the third consecutive week, said reduced supply is one of the factors motivating the city-wide rezoning proposal.
The proposed changes are City of Calgary Housing StrategyThis modifies the default residential zone to include more housing types such as row homes and fourplexes.
“People coming into the market can afford to buy townhomes. That’s why we need to have more of that product to make sure people can actually get what they need.” said Gondek. “That’s what we’re talking about in terms of increased supply.”
But experts said it may take some time for supply to catch up with demand.
“Eventually supply should catch up,” Albrecht said. “But it takes longer to build homes, especially when builders are suffering from labor shortages.”
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https://globalnews.ca/news/10478238/price-of-calgary-townhomes-growing-fastest-in-canada-report/