How Alberta Real Estate Has Changed in 45 Years
Alberta Real Estate and Rental Market Update: Calgary, Edmonton, Lethbridge & Medicine Hat
June 1, 2025 - Written by Jamie Palmer, President & Broker of Power Properties
As we announced last month, Power Properties celebrated its 45th anniversary on May 14th, 2025. A lot has changed since we first opened our doors in 1980—interest rates, home prices, rents, and of course Power Properties. If you ask the founder of Power Properties how many employees Power Properties had in 1980, he will tell you “three: me, myself, and I”, now we have over 30 team members!
Alberta Real Estate: Then vs. Now
In each category, the graphs move up and to the right:
Here’s a quick look at how much the markets have changed:
| City/Metric | 1980 | 2025 |
Average Annual Compounding Increase |
|---|---|---|---|
| Calgary | |||
| Average Rent | $425/month | $1,970/month | |
| Average Detached Home Price | ~$100,000 | ~$839,000 | 4.8% |
| Vacancy Rate | ~2–3% | ~6% | |
| Edmonton | |||
| Average Rent | $400/month | $1,600/month | 4.25% |
| Average Detached Home Price | ~$90,000 | ~$585,000 | 4.25% |
| Vacancy Rate | ~2–3% | ~4% | |
| Lethbridge | |||
| Average Rent | $350/month | $1,5400/month | 3.35% |
| Average Detached Home Price | ~$70,000 | ~$468,000 | 4.31% |
| Vacancy Rate | ~3–4% | ~2% | |
| Medicine Hat | |||
| Average Rent | $300/month | $1350/month | 3.4% |
| Average Detached Home Price | ~$60,000 | ~$453,000 | 4.6% |
| Vacancy Rate | ~3–4% | ~5–6% |
Why Prices Keep Rising
While I am sure many of you are dumbfounded by the current cost of houses and blown away by current rents, the reality is both are likely to continue to steadily increase over long time horizons. What is more amazing is what this means for your return on investment. Using a simple example:
How Real Estate Builds Wealth
If you purchase a $500,000 property with $100,000 down payment, and it increases in value 3% a year (this is the average rate of inflation over the past 45 years, actual property value increases are higher), you will get 15% return on your investment (the $100,000 down payment). 3% of $500,000 is $15,000. $15,000 divided by $100,000 is 15%.
What does this mean after 25 years (average mortgage length)? It means your $500,000 property would be worth $1,046,889 (3% appreciation compounded for 25 year), and your $100,000 grew to $546,889, to speak nothing of the fact that the tenant would have paid off your mortgage.
The Best Time to Invest Is Now
There’s a saying in real estate: “The best time to buy was twenty-five years ago. The second-best time is now.”
Looking at how Alberta’s housing market has grown over the past four decades, it’s easy to see why. Whether it’s rising rents, increasing property values, or long-term equity growth, real estate continues to be one of the most reliable paths to building wealth.
If you're considering investing in a rental property—or expanding the portfolio you already have—Power Properties can help. One of our property managers would be happy to walk you through the current market, identify new opportunities, and help you make confident, informed decisions for the future.
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Written by Jamie Palmer, President & Broker of Power Properties
Jamie Palmer is the President and Broker of Power Properties. He holds a Certified Property Manager (CPM®) designation, the highest designation in Property Management in North America. He earned an Honors degree from the University of Toronto, and he has over two decades of experience in property management.
About Power Properties
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Lethbridge and Medicine Hat for over four decades. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
