The price of townhomes in Calgary is on the rise, outpacing other Canadian cities due to continued population growth and demand in the housing market. According to a report from Zoocasa, the average price of a townhome in Calgary has increased by 17 percent over the past year, reaching $458,100. This growth is significantly higher than in Edmonton, where townhome prices saw a 10.3 percent increase to $245,900. With the Canadian dream of owning a detached home becoming increasingly unattainable for many, townhomes are becoming a popular choice for those looking to enter the housing market or downsize.
The Calgary Real Estate Board (CREB) reported a 16.1 percent increase in townhome sales in April compared to the same period last year, with 483 townhomes sold. Realtor Mark Neustaedter noted that townhomes are becoming more accessible compared to single and semi-detached homes, partly due to lower minimum down payments. The Zoocasa report highlighted that a five percent down payment on the average townhome in Calgary is $22,905, significantly lower than the minimum down payment of over $50,000 required for a single-detached home. However, supply remains a concern, with a decline in affordable townhomes available on the market.
The decline in supply can be attributed to lower-priced homes being taken off the market, according to CREB chief economist Ann-Marie Lurie. The supply of row homes priced under $400,000 has decreased from 40 percent to 20 percent, signaling a shift towards higher-priced properties. In 2023, Calgary experienced a record year in housing construction, with over 15,393 homes built, an 11 percent increase from the previous year. There was a significant increase in the construction of multi-residential homes and secondary suites, catering to the demand for more affordable housing options in the city.
Calgary’s mayor highlighted the need for more affordable housing options in the city, addressing the dwindling supply of townhomes. The city is considering rezoning proposals as part of the housing strategy to include more housing types like rowhouses and fourplexes. The goal is to increase the supply of townhomes to meet the demand and provide more options for individuals entering the housing market. While experts believe that supply will eventually catch up with demand, challenges such as labor shortages in the construction industry may prolong the process of building new homes to meet the growing need.
Overall, the surge in townhome prices in Calgary reflects a broader trend of increasing demand for affordable housing options in the city. As the cost of detached homes continues to rise, townhomes are becoming a more attractive choice for first-time homebuyers and those looking to downsize. Efforts are being made to address the imbalance between supply and demand through initiatives such as rezoning proposals and increased housing construction. It remains to be seen how quickly these measures will be able to alleviate the affordability crunch in Calgary’s housing market.
