Calgary’s condo market continues to evolve as economic shifts, urban revitalization, and demographic changes impact housing demand across the city. What has remained consistent, however, is the potential for the condo market to help address affordability challenges for many home buyers, especially as the population continues to grow, and for it to provide investors with ample opportunities for revenue properties.
As 2025 begins, many people, from first-time buyers to seasoned investors are closely analyzing the dynamics shaping Calgary’s condo sector to make informed decisions.
Current Market Snapshot
Calgary’s real estate market exhibited remarkable resilience through 2024, with the condo segment playing a pivotal role in sustaining housing availability amidst affordability concerns. The benchmark apartment price stood at $337,800 in November 2024, according to the Calgary Real Estate Board, representing a 9% year-over-year increase, offering affordability as well as the potential for appreciation. The year-over-year benchmark price was $336,527, showing an even more impressive 16% increase.
Inventory growth has been a key market development. As of December 2024, condo listings rose to over 4,300 units; however, inventory levels still remain below long-term trends for the month. Condo sales continued to perform well, particularly in urban centers, demonstrating a continuing value within Calgary’s housing ecosystem.
Jesse Davies, leader of the Jesse Davies Team with Century 21, and a certified condo specialist, further notes, “Increases in supply vary significantly by location and price range, meaning that condos in popular areas, and those within key price brackets, remain in high demand.”
While there was a decline in condominium apartment sales in 2024, the numbers were still 47% higher than historical norms, reflecting their continuing role in offering accessible housing and investment options.
Key Trends Shaping Calgary’s Condo Market Going Into 2025
Affordability and Market Access
Affordability remains a pivotal driver of Calgary’s condo market. As the benchmark price for detached homes has reached beyond $750,000, condo apartments provide a crucial alternative for first-time buyers and younger professionals unable to afford single-family homes. With apartment benchmark prices in November 2024 at $337,000, the condo market has become one of Calgary’s most accessible options. However, entry-level condos, priced at $300,000 or less, are particularly scarce and in demand.
Federal and provincial initiatives aimed at assisting first-time homebuyers, such as the new First Home Savings Account (FHSA) announced in 2023 and the Registered Retirement Savings Plan (RRSP) program for first-time home buyers, help to offset borrowing costs. With the recent addition of the FHSA, more households who were at a tipping point are reconsidering moving away from renting and into entry-level homeownership.
Strong Rental Demand Driving Investment Opportunities
Calgary experienced record population growth in 2024, with an increase of 4.9% as of April 1, compared to the previous year, according to data from the City of Calgary. This surge in population has led to heightened demand for housing, particularly in the rental market, which has created significant opportunities for property investors.
The Canada Mortgage and Housing Corporation (CMHC) reported in October 2024 that Calgary’s apartment rental market had a vacancy rate of 4.8%. The average rent for apartments reached $1,732, with a median rent of $1,677, marking an increase of 8.4% year-over-year.
In some areas of Calgary, the rental market is even tighter. For example, the northeast region reported an extremely low vacancy rate of just 1.0% and a higher median rent of $1,800. Similarly, the Fish Creek area maintained a median rent of $1,800 alongside a vacancy rate of only 1.7%. Larger rental units, such as two-bedroom apartments, command rates starting at $1,850, while three-bedroom units in key areas can achieve median rents as high as $2,232.
While some neighbourhoods may be approaching market saturation, others continue to present strong investment opportunities for 2025 and beyond. Jesse Davies emphasizes the importance of strategic property selection to maximize returns. “Beltline and East Village offer exceptional rental yields due to their proximity to transit and other amenities, making them highly competitive districts for investment,” Davies explains. He also highlights the northeast as a “promising region, where low vacancy rates and high rental income potential can reward investors who carefully align properties with the needs of a neighbourhood’s specific demographics.”
Urban Revitalization Boosting Inner-City Markets
Urban revitalization continues to transform Calgary’s housing landscape, particularly in neighbourhoods like East Village, Kensington, and Inglewood. Major infrastructure projects, such as the Green Line LRT and mixed-use developments, have enhanced connectivity and urban convenience, further attracting residents who prioritize walkability and live-work-play amenities.
Demand for condos in these areas remains strong. Beltline, for example again, maintains consistent demand due to its accessibility and proximity to employment hubs. High-density residential zones with mixed-use features are well-positioned to appeal to buyers or renters looking for homes that offer urban vibrancy alongside accessibility to transit and services.
Improved infrastructure has also contributed to rising buyer interest in mid-tier condos. New developments near planned transit stations are particularly attractive, offering long-term potential for price appreciation.
Calgary’s Office Conversion Initiative is one factor helping to renew the downtown core by turning vacant office buildings into residential and mixed-use spaces, including over 1,400 new homes. This could lead to significant changes in the condo market in the area, providing new housing and investment opportunities, while revitalizing the city’s center.
Sustainability Gaining Market Importance
Environmental sustainability is emerging as a priority for many Calgary condo buyers, especially younger demographics. Rising energy costs have incentivized a shift toward energy-efficient housing options. New developments featuring sustainability upgrades such as solar panels, energy-efficient heating and cooling systems, and eco-friendly design certifications, such as LEED, are outperforming their older counterparts.
Properties with sustainable designs could see faster resale times and higher rental interest in 2025. Municipal incentives like the Clean Energy Improvement Program could make an impact, particularly as renters and owners alike look to mitigate rising operating costs.
Predictions for 2025: What Lies Ahead
Price Growth
Price growth is expected to continue, although it is likely to moderate after its unusually strong gains in the past couple of years. Jesse Davies projects a year-over-year increase of 5% in 2025, especially since the recent population expansion is likely to continue to support steady demand. He advises, “Potential buyers should act sooner rather than later, as there are options available to choose from now, and prices are expected to rise.”
Sustained Rental Market Strength
Rental market strength is likely to persist, due to the increase in population and vacancy rates remaining tight. Jesse Davies anticipates rental prices to rise by 4% to 6%, and adds “The continued scarcity of affordable and key niche rental options, coupled with limited new construction in high-demand areas, positions Calgary’s rental market for sustained strength in 2025.”
Increased Focus on Sustainability
Sustainable developments will retain high market appeal. Eco-friendly retrofits in existing condos, alongside newer builds designed with green technologies, are expected to capture both buyer and renter interest.
Regional Performance Variations
Central neighbourhoods, bolstered by transit access and urban renewal, will continue to outperform less central areas in 2025. Meanwhile, markets experiencing high inventory growth without corresponding buyer demand could face challenges. Emerging developments and newly established neighbourhoods present opportunities for early investment in areas poised for growth.
Navigating these shifting market dynamics can be streamlined with the guidance of an experienced Calgary condo realtor, who can assist buyers, sellers, and investors alike.
Maximizing / Taking Advantage of Calgary’s Condo Market Dynamics
The Calgary condo market in 2025 presents a complex but opportunity-rich landscape. As affordability pressures push more buyers toward multifamily housing and population growth sustains rental demand, condos are likely to remain a critical segment of Calgary’s evolving real estate market.
Additionally, experts are calling for a rise in investment interest across Canada, and given Calgary’s landlord-friendly environment, the city is likely to be a key hotspot. Calgary’s condo market provides attractive options for those seeking accessible homeownership or profitable rental investments. However, successfully navigating this complex market is much easier with the help of a professional who offers a deep understanding of local trends, expert insights, and guidance tailored to your specific goals.
Careful attention to submarket dynamics, individual priorities, and long-term development strategies is essential in Calgary’s competitive housing sector. This requires specialized expertise, which Jesse Davies offers as a leader in Calgary’s condo market. Recognized as one of the best realtors in Calgary, Jesse has earned multiple industry and customer awards.
Davies’ in-depth market insights, wide network, and exclusive opportunities provide clients with a distinct competitive edge. By working to clearly understand their goals, he offers tailored strategies that lead to better-informed investment decisions. This personalized approach ensures clear communication and strategies that align with clients’ long-term success.
With years of experience, the Jesse Davies Team excels at interpreting market shifts and emerging developments, providing clients with timely and actionable insights. Looking ahead to 2025, Jesse Davies is committed to proactively guiding clients through the evolving Calgary condo market landscape, to help ensure their success. By staying ahead of the new year’s emerging trends and anticipating key shifts, Jesse can help clients strategize and achieve their goals.
