Crunching the Numbers
Calgary Real Estate and Rental Market Update
August 1, 2023 - Written by Jamie Palmer, President/Broker of Power Properties
Sometimes math is difficult, but when it comes to housing in Canada the math is very clear…
Immigration Trends and the Population Surge
The number commonly quoted in the media is that the Canadian government’s goal is to admit 450,000 to 500,000 new immigrants per year for the next four years, however, this does not include the 551,000 annual student visas (number of visas issued in 2022), or the 608,000 temporary foreign worker (number of visas issued in 2022)… All totalled that is over 1.5 million new people coming to Canada each year, or a new Calgary every year for the next four years.
Housing Supply and the Urgency to Build
At the same time, Canada is on track to build 250,000 new housing units per year according to Statistics Canada, and Canada will need to build 5.8 million homes by 2030 (only 6.5 years away) to maintain affordability (meaning spending less than 40% of your income on housing).
Balancing the Equation: Population Growth vs. Housing Supply
You don’t have to be a mathematical savant to see that adding six million people to the population in the next four years while only building one million housing units is going severely impact supply and demand, which in turn will impact pricing.
Investment Prospects in Calgary's Real Estate Landscape
Now some will say housing has to “break” it can’t keep doing what it’s doing, however, there are numerous examples throughout the world that are less affordable than Calgary suggesting that housing in Calgary can and will continue to increase in the near future.
With the above in mind, and looking into the future it would be prudent to capitalize on the coming population surge by investing in Calgary real estate. At Power Properties, our Property Managers are licensed in Property Management and Real Estate, so they can provide you with guidance on purchasing an investment property and expected rental rates, and then seamlessly transition it into property management. To get started, reach out to our team today.