As we look ahead to 2025, the Calgary housing market remains one of the most talked-about real estate markets in Canada. With its strong economy, attractive price points compared to other major cities, and an influx of people relocating to the area, there’s a lot of potential for both buyers and sellers in the near future. However, as with any real estate market, it’s important to stay informed and understand the trends and predictions that will shape the market.
In this post, we’ll dive deep into the Calgary housing market forecast for 2025. We’ll explore key trends, discuss what buyers, sellers, and investors can expect, and provide actionable recommendations for navigating the market. Whether you’re looking to buy a home, sell your property, or invest in Calgary real estate, this guide will help you make informed decisions.
The Calgary Housing Market in 2025: What to Expect
1. Continued Price Increases, But at a Slower Pace
In 2025, Calgary’s housing market is expected to see steady price increases, but at a more moderate pace than in previous years. While the market has been growing steadily, a cooling trend in terms of price escalation is expected due to a combination of factors such as higher interest rates, which have slightly tempered affordability.
Experts predict that the price growth will be around 3-5% in 2025, compared to the double-digit increases we’ve seen in the past few years. This means that while home values will continue to rise, the pace will likely slow down, making it slightly more manageable for buyers while still presenting opportunities for sellers who have been holding onto their homes for a while.
2. Affordability Concerns Due to Interest Rates
One of the biggest challenges in the Calgary housing market will continue to be affordability, largely driven by rising interest rates. The Bank of Canada has implemented interest rate hikes in recent years, which have made mortgages more expensive for many buyers. While rates may stabilize or rise at a slower pace in 2025, they are still expected to be higher than the historically low rates we saw during the pandemic.
This means that buyers will need to carefully assess their budgets and may face challenges in affording larger homes or homes in more desirable areas. However, compared to cities like Toronto and Vancouver, Calgary remains an affordable option for many.
3. Suburban Growth Continues
Calgary’s suburban areas have been growing in popularity, and this trend is expected to continue into 2025. More buyers are looking for larger homes, more green space, and a quieter lifestyle, which has led to an increase in demand for homes in Calgary’s outlying neighborhoods. Areas like Coventry Hills, Mahogany, and Shawnessy are projected to see significant price growth, especially as more people seek affordable housing options outside the city center.
Top Suburban Communities to Watch in 2025:
- Airdrie: Rapidly growing with new developments and strong community amenities.
- Cochrane: Known for its scenic beauty and small-town charm.
- Chestermere: Offers lakeside living with easy access to Calgary.
These areas offer a good balance between proximity to downtown and more affordable price points, making them highly attractive to both first-time homebuyers and families looking for more space.
4. Luxury Market Remains Strong
Calgary’s luxury housing market is expected to remain robust in 2025. With the city’s strong economy, no provincial sales tax, and access to an active outdoor lifestyle, Calgary continues to attract high-net-worth individuals. Upscale areas like Elbow Park, Aspen Woods, and Mount Royal are likely to see continued demand, with luxury homes maintaining their value and even appreciating in some cases.
This market has always been somewhat insulated from broader economic fluctuations, and the continued interest in high-end properties in Calgary suggests that 2025 will be no different.
5. The Risk of a Housing Market Correction
While a complete housing market crash is unlikely in Calgary, experts are closely monitoring the risk of a short-term market correction. As interest rates remain higher than pre-pandemic levels, some buyers may be priced out of the market, leading to a slight cooling in demand. However, Calgary’s strong job market, relatively low inventory, and ongoing interest from out-of-province buyers suggest that the market will likely remain stable.
Nevertheless, it’s important to understand the broader economic factors that could affect Calgary’s housing market, such as changes in oil prices or a global recession. While a major crash is not anticipated, buyers, sellers, and investors should stay prepared for potential fluctuations in the market.
Price Per Square Foot in Calgary: Key Insights for Buyers
One of the key metrics to keep an eye on in Calgary’s real estate market is the price per square foot. Understanding this metric is crucial for evaluating property value, especially when comparing homes in different neighborhoods or types of properties.
As of 2025, the price per square foot in Calgary will likely see gradual increases, especially in high-demand areas like downtown Calgary, areas near major amenities, and in well-established neighborhoods. For example:
- Detached Homes: Prices for detached homes in Calgary are expected to range from $350 to $400 per square foot in many areas. This is an average, with some neighborhoods seeing prices as high as $450 to $500 per square foot, particularly in the luxury market.
- Condos: The price per square foot for condominiums in Calgary will generally fall between $300 and $400, although more upscale condos in prime locations could fetch higher prices.
Understanding the price per square foot in relation to your budget and the neighborhood you’re interested in can help you make more informed decisions when buying a home in Calgary.
Recommendations for Buyers, Sellers, and Investors
Now that we’ve covered the key trends and predictions for Calgary’s housing market in 2025, here are some actionable recommendations for buyers, sellers, and investors who are looking to take advantage of the market.
For Buyers:
- Act Quickly: With home prices continuing to rise, it’s crucial to act quickly when you find a property that fits your needs. Don’t hesitate to make an offer, especially if the home is located in a desirable neighborhood or has features that are in high demand.
- Consider Suburban Areas: If you’re struggling to find an affordable home in the city, consider expanding your search to the suburbs. Neighborhoods like Coventry Hills, Shawnessy, and Mahogany are expected to see significant demand in 2025 and may offer better value for your money.
- Get Pre-Approved: With interest rates still relatively high, getting pre-approved for a mortgage will give you a better understanding of your budget and can help you avoid disappointment when you find the right property.
For Sellers:
- Take Advantage of Steady Demand: If you’re considering selling your home in 2025, now may be an excellent time to do so. With continued demand and rising prices, sellers in popular neighborhoods should be able to achieve favorable sale prices.
- Prepare Your Home for Sale: To stand out in a competitive market, make sure your home is in top condition. Small improvements like fresh paint, landscaping, and home staging can make a big difference in attracting buyers.
- Timing is Key: Consider listing your home early in the year, as the spring market traditionally sees more buyers actively searching for homes.
For Investors:
- Focus on Long-Term Gains: If you’re an investor looking to purchase property in Calgary, focus on areas with strong long-term growth potential. Neighborhoods with increasing demand, such as the suburbs, are likely to see higher returns on investment over time.
- Diversify Your Portfolio: Consider diversifying your real estate investments by including both single-family homes and rental properties like condos. The rental market in Calgary remains strong, particularly in neighborhoods with access to amenities and major employment centers.
- Monitor Market Conditions: Stay on top of market trends, especially in relation to interest rates and economic conditions. Keeping an eye on these factors will help you make more informed decisions about when and where to buy.
Final Thoughts on the Calgary Housing Market in 2025
The Calgary housing market forecast for 2025 points to steady growth, with increasing demand for both detached homes and condominiums, especially in suburban areas. While interest rates may continue to present challenges for buyers, Calgary remains a more affordable option compared to many other Canadian cities, which will continue to attract homebuyers and investors.
Whether you’re buying, selling, or investing, staying informed and being proactive will be key to succeeding in Calgary’s real estate market in 2025. By keeping a close eye on market trends and working with a real estate expert, you can make confident, well-informed decisions that align with your goals. As always, reach out to me, Sherry Johnston, for all of your Calgary and Airdrie real estate needs. Don’t forget to check out my other blog here for all things real estate
Frequently Asked Questions (FAQ) About Calgary’s Housing Market in 2025
1. Will Calgary home prices go down in 2025?
No, experts predict that Calgary home prices will continue to rise, albeit at a slower pace of 3% to 5%. Low inventory and continued migration will keep demand strong.
2. Is Calgary real estate a good investment in 2025?
Yes! With increasing demand for both homeownership and rentals, Calgary remains one of Canada’s most attractive real estate markets for investors.
3. What are the best neighborhoods to buy a home in Calgary?
Popular areas include Airdrie for affordability, Cochrane for scenic living, and Chestermere for lakeside properties.
4. Will interest rates affect Calgary’s housing market in 2025?
Yes, if interest rates drop, demand will surge, leading to higher prices. If they stay stable, affordability will improve gradually.
5. Is now a good time to buy a condo in Calgary?
Yes, condos remain an affordable entry point into the Calgary market, and demand is expected to increase in 2025
