Edmonton ranks 2nd among Canadian cities for home buyers, renters

Recent reports reveal Edmonton as one of the most affordable places to live in Canada, both for home buyers and renters.

Eric Closs is planning his move from Cranbrook, British Columbia, to Edmonton.

“I’ve always loved Edmonton—loved the vibe, loved the feel of the place,” said Closs. “Super excited about it. And of course, the real estate is extremely affordable when you look at big cities across Canada.”

Closs says that just six years ago, he could afford to purchase his home in Cranbrook. Now, as he prepares to sell and move, Edmonton is the most affordable option.

“I’m in a position where I can probably sell my house, pay off my mortgage, and buy a house outright so I won’t have any mortgage payments,” said Closs.

In fact, Edmonton has ranked as one of the most affordable places to live in Canada—second only to Regina, Saskatchewan. An op-ed by finance expert Hanif Bayat for The Globe and Mail shows that Edmonton’s home-price-to-disposable-income ratio is 4.61. To put it simply, if the average household income is $100,000, the average home price is $461,000.

“You look at income versus housing costs—Edmonton, and Alberta in general, still has the highest wages in the whole country,” said Rick Reinhardt, partner at Gannon Reinhardt Realty Group, Century 21 Masters. “And that’s just attracting more and more people to move here because of that.”

While just a few years ago many first-time home buyers were purchasing a condo or classic starter home, Reinhardt says he’s noticed a shift in the types of homes first-time buyers are now looking for.

“We are seeing a lot more qualified first-time home buyers, as opposed to ones who are struggling to get into the market,” said Reinhardt. “We’re dealing with people who have saved up a lot more than they normally would.”

But even though Edmonton ranks high on the affordability scale, actually buying the house you want could prove to be a challenge. Reinhardt says there was a shortage of inventory to start the spring market, causing many homes to sell well over asking price.

“It’s very difficult to tell people that they’re buying their first home, ‘You need to write an offer $20,000 to $30,000 over list price just to compete,’” said Reinhardt. “I encourage patience with any first-time home buyers for sure. Buyer fatigue is very real, and we’re seeing it a lot right now. People are just getting tired of losing offer after offer.”

The good news, Reinhardt says, is that the tides are turning.

“Be patient,” said Reinhardt. “The market is turning in your favour. Just don’t be discouraged—just ride it out, and eventually, a great house will pop up for you.”

And it’s not just home buyers who find Edmonton more affordable. According to a recent report from Rentals.ca, Edmonton is also the second most affordable city in Canada when it comes to rent, with the average price being $1,621 per month. A one-bedroom unit in Edmonton averages $1,316 per month—less than a one-bedroom unit in Lethbridge.