Alberta Experiencing Most Rapid Growth in Canada

The surge in home values in Calgary is not just a coincidence; it's a reflection of Alberta's rapid growth.

According to Statistics Canada's recent midyear update on population and demographics, Alberta is experiencing the fastest population growth in the entire country. In the 12 months leading up to July 1, our province's population soared by an impressive four percent. This extraordinary growth was primarily driven by a substantial influx of 106,000 Canadians who chose Alberta as their new home. While some individuals left the province during this time, the net in-migration stood at an astounding 56,000 people. This net migration figure is a historic record, a testament to Alberta's allure.

One might wonder, what makes Alberta so appealing?

Well, Alberta's robust economic strength is a significant draw. Economists at Toronto-Dominion Bank estimate that our gross domestic product is set to expand by a healthy 2.3 percent this year, significantly outperforming the national forecast of 1.2 percent. Employment in Alberta has risen by an impressive 4.1 percent in the past year, far exceeding the national pace of 2.5 percent. While the Canadian labour market has experienced some slowdown, Alberta alone has contributed to 60 percent of the country's job growth since April, adding 44,000 net new jobs.

One contributing factor to this economic vitality is the continued success of the oil and gas industry. Alberta-produced crude oil has seen some of its highest prices in nearly a decade, boosting oil and gas exploration and production. This year, the province is projected to achieve record-breaking crude oil production, underlining the industry's role in job creation and wealth generation.

However, it's important to note that this population boom is not solely driven by the oil and gas sector, as seen in previous decades. According to Brad Parry, head of Calgary Economic Development, newcomers are arriving for a variety of reasons. The opportunities, diversification, growth, and overall lifestyle that Alberta offers are compelling factors driving this migration. In the past year alone, Calgary welcomed 42,000 new residents, and the city's appeal extends beyond traditional industries.

One significant aspect of this "lifestyle" component is the affordability of homes in Alberta. As of August, the average house price in Alberta stood at $440,000, a stark contrast to $956,000 in neighbouring British Columbia and $832,000 in Ontario. Rental prices are also considerably lower, with the average rent for a one-bedroom apartment in Edmonton coming in at under $1,300 a month in August, compared to over $2,600 in Toronto and nearly $3,000 in Vancouver.

This influx of newcomers has undeniably driven up both demand and property prices. In the past year, one-bedroom rental costs in Calgary have risen by more than 20 percent, and the city boasts one of the hottest home-sales markets in the country, with resales up 25 percent year-over-year and prices up 7.3 percent.

To address the long-term housing demand, Calgary has adopted a strategic approach by converting downtown office spaces into residential units. This initiative, which has been in progress for several years, has already approved 10 conversion projects, with more in the pipeline. Ultimately, it will transform approximately two million square feet of office space into new downtown homes.

Here it is: the convergence of economic opportunities, diversification, and an attractive lifestyle has made Alberta, and Calgary in particular, a prime destination for Canadians. As a realtor, I'm here to help you navigate this dynamic market and make the most of the exciting real estate opportunities in our thriving province.