Average Home Prices In Alberta 2021

Average Home Prices In Alberta 2021

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated November 4, 2021

Buying a house in Alberta these days is no small feat. If you’re considering a home purchase in any one of the many real estate markets across Alberta, you should get familiar with the average cost of homes first. 

Let’s take a closer look at what home prices are doing in Alberta these days to help you make a more informed buying decision when purchasing a home. 

Check out the pros and cons of renting versus buying a home.

What Affects Home Prices? 

There are so many factors that affect home prices, no matter where you happen to be looking:

  • Location. You can make all sorts of changes to your home to increase its value, but there’s little you can do about its location. When it comes to housing prices, location plays a key role. And several things go into making a location desirable, such as proximity to employment, quality of schools, crime rate, local amenities, and proximity to roadways and public transit. 
  • Size of the home. Generally speaking, the more square feet that a home occupies, the higher the price. There are exceptions to this rule, but in general, you can expect a larger house to come with a higher price tag than a smaller house in the same area.

Are you a first time home buyer? Check out these unconventional home buying tips.

  • Condition of the home. A home that is in good condition will be valued higher than a home that is in poor condition. 
  • Upgrades and features. Certain upgrades can add a lot of value to a home, especially if they drastically improve the condition and appeal of the property. 
  • Local market. No matter what condition your home is in or the type of lot it sits on, the temperature of the local housing market will have a big impact on a home’s value. More specifically, the supply of homes in the area and the demand among buyers will determine how much a home will sell for. If there are few homes available in the market, for instance, and many buyers on the prowl for a home, prices will be higher.  

Save money using the First-Time Home Buyers’ tax credit.

  • Neighbourhood comparables. One of the best ways to determine the current value of a home is to find out what similar homes in the area recently sold for. Known as “comps,” these comparable properties are typically referred to when real estate professionals establish listing prices for homes they sell. Ideally, the properties assessed should be very similar to the subject home, be located within the same neighbourhood, and have sold no further back than 3 months to get an accurate idea of what a home is worth in today’s market. 
Cost of Buying a House in Canada

Average House Prices of Alberta

The average price for a home in Alberta is $403,163 as of September 2020. That’s a 4.2% increase from the same month in 2019, when the average price was $386,815. 

But the price for homes will vary from city to city, despite the average in the province. The following are the top 5 most expensive centres in Alberta to buy a house as of September 2020, along with their average home prices: 

  1. Calgary – $415,200
  2. Fort McMurray – $382,224
  3. Grand Prairie – $334,732
  4. Edmonton – $323,100
  5. Lethbridge – $308,749

Find out how you can buy a house in Canada with bad credit.

Comparing Average House Prices by Province

Home Prices 2019Home Prices 2020Year-Over-Year % Change
Canada$514,156$604,21117.5%
British Columbia$696,647$801,03915.0%
Alberta$386,815$403,1634.2%
Saskatchewan$284,095$293,7433.4%
Manitoba$282,314$308,6899.3%
Ontario$619,533$741,39519.7%
Quebec$336,858$397,44518.0%
New Brunswick$172,491$226,65912.8%
Newfoundland and Labrador$272,000$278,5002.4%
Nova Scotia$247,644$303,59922.6%
Prince Edward Island$251,792$297,29018.1%

How Do Alberta Home Prices Compare to the Rest of Canada? 

Canada’s average home price is currently $604,211, which is much higher than Alberta’s average of $403,163. From September 2019 to September 2020, Canada’s average home price increased a whopping 17.5%, compared to Alberta’s year-over-year increase of 4.2%.

While Alberta’s home prices did not increase as much as Canada’s, it’s still a healthy rise. In fact, much of Canada has seen home price appreciation over the third quarter in 2020, particularly in Ontario, Quebec, PEI, and Nova Scotia where price gains are especially pronounced. 

Check out if you can get a no down payment mortgage.

How Much You Should Spend on a House?

For most Canadians, the price of a home must fit within their budget. Before you start searching for a new home, you’ll need to figure out how much you can afford for a home purchase. Here are some things to consider to help you determine how much you should spend on a house.

Detail All Incoming Expenses

A mortgage payment will be just one more bill to pay every month. Before you add that bill to the pile, you should take a tally of all the other expenses you have to figure out how much of your income you have left. Consider bills such as:

  • Utilities
  • Car loans
  • Car insurance
  • Groceries
  • Student loans
  • Personal loans
  • Credit card bills
  • Subscriptions
  • Miscellaneous expenses

All of your expenses should be added up to give you a clear picture of how much you’re already spending every month. Then you can determine how much you have remaining from your monthly paycheque to dedicate to a mortgage payment.

Check out how to budget and save efficiently for a mortgage.

Compare Your Expenses Relative To Your Income

Once you’ve determined what your current monthly expenses are, it’s important to determine how much of your income is left after all of your other financial obligations have been dealt with. Most financial experts agree that no more than 30% to 35% of your gross monthly income should be spent on housing expenses. 

This is referred to as your gross debt service (GDS) ratio, which includes the principal, interest, taxes, and half of your condo fees, if applicable. A lower GDS is better, as it will leave you with more of a financial cushion when all bills are paid and will satisfy the requirements of your mortgage lender.  

At the same time, you should not spend any more than 42% on total debt. This is referred to as your total debt service (TDS) ratio and includes things like credit cards, car loans, student loans, personal loans, and your mortgage. Again, the lower your TDS, the better. 

Staying close to these recommended ratios will ensure that you can comfortably afford a mortgage and avoid becoming “house poor.” The last thing you want is to get stuck with a long-term mortgage that’s too much for your budget to handle, even if a mortgage lender is willing to approve you for it. 

Calculate All Costs Of Owning A Home

Owning and operating a home comes with a list of costs that you’ll need to cover every month. It’s important to understand what these are and how much they’ll cost you. Here are some common expenses associated with owning a home:

Home Insurance

Most likely, you’ve got a mortgage on your home, and if you do, your lender will insist that a home insurance policy is taken out on it. Even if your lender does not require home insurance as part of the deal, it would still be wise to have a policy in place anyway, as it can provide you with financial compensation if your home is ever damaged or broken into. 

Property Taxes

The fee you pay for property taxes will depend on your home’s location and value. Every jurisdiction has its own property tax rate, which is multiplied by the value of your home to give you the annual fee that you’ll have to pay. 

In Calgary, the current residential property tax rate is ​0.0075223%. If your home is currently worth $500,000, for example, your annual property taxes would be $3,761.15. 

Utilities

To keep your home comfortable and convenient, you’ll need things like running water, heat, and electricity, among other things. All the utility companies that service your home need to be paid so you can continue getting uninterrupted service.

Maintenance

Your home will need some upkeep to maintain its condition, which costs money. Failure to maintain your home could impact its value, so you don’t want to skip your regular maintenance-related chores.

Repairs

Things break down, and when they do, they’ll need to be repaired or replaced. Things like your appliances, HVAC system, roof, windows, faucets, and other components will require attention at some point to keep them functioning the way they should. But repairs can be costly, so you should budget for them accordingly.

Need help financing your home renovations? Check out these home renovation loans.

Condo Fees

One of the great things about living in a condo is that much of the maintenance and repair work that may be required is taken care of by property management. But there’s a fee to enjoy maintenance-free living that is covered by monthly condo fees. Every condo has its own condo fee rate, which is calculated by the square footage of your unit. So, if your condo unit is 1,000 square feet and your condo fee rate is $0.30 per square foot, your monthly condo fees will work out to be $300 per month.

Thinking of becoming a landlord? Here are things you should know before becoming a landlord.

Final Thoughts

Buying a home in Alberta may be a bit more affordable than in other provinces across Canada, but it’s still not cheap. A home purchase requires careful consideration and a hard look at your finances and what you can afford. Be sure to crunch the numbers to assess your current financial situation to help you determine what you can comfortably afford to spend on a home in any one of Alberta’s beautiful cities.


Rating of 5/5 based on 1 vote.

Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same. She's used a variety of financial tools over the years and is currently growing her money with Wealthsimple, while stashing some capital in a liquid high-interest savings account so that she always has a financial cushion to fall back on. She's also been avidly using her Aeroplan TD credit card to collect as many Aeroplan points as possible to put towards her travels!

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Save With Loans Canada

Special Offers

Build Credit With Refresh Financial

Build Credit With Refresh Financial
Popular

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $7/Month

Build Credit For $7/Month
Popular

With KOHO’s prepaid VISA card you can build a better credit score for just $7/month.

View Offer
Make No Payments Until 2022

Make No Payments Until 2022
Ends Soon

Borrow up to $50,000 from our partner, Fairstone, and don’t pay until 2022*

View Offer
Industry Spotlight

What's happening with Canada's credit industry?

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...

Read Post
Locator
Find The Best Rate
In Your Region
OR
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.