Affordability is one of the most powerful forces shaping real estate decisions across Alberta. Edmonton has long carried the reputation of having an affordability advantage—not only compared with Calgary, but also with many of Canada’s largest housing markets.
But there is an important distinction that buyers, sellers and investors should understand: being relatively affordable does not necessarily mean housing feels affordable to the people who live there.
That distinction matters in today’s Calgary real estate market.
Imagine a household standing at the kitchen table, looking at a mortgage payment, groceries, utilities, insurance and transportation costs. The headline price of a home may look reasonable compared with Toronto or Vancouver, but what matters to that household is purchasing power—how much income remains after covering the cost of everyday life.
As Felicia Mutheardy, Chief Corporate Economist with the City of Edmonton, emphasizes, affordability for existing residents should be measured through changes in relative purchasing power. And that purchasing power remains under pressure as households navigate higher costs and uncertainty around employment, wages and spending.
For Calgary real estate buyers, this creates an important shift in perspective.
It is easy to look at Alberta’s comparatively lower home prices and conclude that affordability automatically creates strong buying conditions. The reality is more nuanced. A buyer’s ability to purchase depends not only on the price of the property, but also on income growth, borrowing costs, household expenses and confidence in their financial future.
For sellers, this matters because buyers are becoming more deliberate. Price expectations must reflect what today’s households can realistically afford—not simply what comparable properties sold for in the past.
For investors, affordability remains a critical part of the equation because it influences both rental demand and future buyer pools. A market can be relatively inexpensive compared with other Canadian cities while still facing affordability pressures locally.
This is why I believe Calgary real estate should never be evaluated through a single number.
Price matters. Income matters. Purchasing power matters. And the relationship between all three matters even more.
For anyone considering buying, selling or investing in Calgary, the opportunity is in understanding that relationship before making a move.
The question is not simply, “Is Calgary affordable?”
The better question is: “Affordable for whom, under today’s economic conditions—and what does that mean for the property I am considering?”
That is the level of market analysis that can turn a real estate decision from a guess into a strategy.
