Do you know you may be able to rent a home in Calgary for much less money than it costs to own?
And perhaps able to travel and work abroad because you are not tied down by a house! And at the same time to take advantage of a strong stock market or invest money that would otherwise have been consumed by a house!
While in the two most expensive cities in Canada, Toronto and Vancouver, many folks are desperate to get into the real estate market because home prices have surged disproportionately in last few years and they feel it’s a great investment, Calgary remains one of the country's quieter real estate markets because of low oil prices and overall muted economic recovery.
The average rent for a single and double bed apartment is Calgary is roughly half of what one would end up paying in a good Vancouver or Toronto neighborhood. And with rising mortgage interest costs the own versus buy situation seems heavily tilting toward renting for Calgary rental market.
The younger generation also has taken the renting revolution in its stride. Speaking to one of the young adults Trevor, who lives in trendy Kensington area west of Calgary downtown, he loves not owning another loan and many variety of renting option at any price points. He said, “A few years back I would not have thought of renting my condo at the price I am paying today. Continuing, “It absolutely don’t make sense to me why I need to buy when I can rent the same condo much cheaper than what I would be paying overall if I owned it!” And on top of it, if my situation changes or decide to go work in another city, I can pack and move anywhere at short notice!
The same cannot be said for other two markets in Vancouver or Toronto due to strong demand and healthy rise in property prices. Unless that trend changes direction, it is likely that people in those cities would be enticed towards renting. Overall costs of owning a house including property tax, utilities, maintenance etc. when summed up also significantly outweigh cost of renting unless you plan to keep the house for more than a decade. While the occupancy levels in Calgary’s residential rental inventory is slowly rising, this is still a renter’s market with room for price negotiation. With rising mortgage rates over next few years, it is likely the ownership costs of a house is unlikely to be in landlord’s favor.
What would you do, own or rent in this rental market in Calgary? Leave your comment below!