Calgary’s housing market is poised for a significant rebound by 2025, driven by declining mortgage rates and strong population growth. Understanding how these trends will create challenges and opportunities is crucial for anyone looking to navigate the market. Read our Calgary housing market forecast for 2025 to learn all the insights you need to invest strategically in the new year.
Housing Prices: Reaching New Heights
The Canada Mortgage and Housing Corporation (CMHC) forecasts that home prices in Calgary will return to the peak levels seen in early 2022 by 2025. This forecasted rebound is primarily driven by declining mortgage rates and unprecedented population growth in the city.
As mortgage rates ease from their current highs, more buyers are expected to enter or re-enter the market, spurring competition and pushing home prices upward. Calgary’s housing market, which has already seen significant price growth in recent years, is expected to remain robust as population growth drives demand. The influx of new residents will heighten competition for available homes, further driving up prices.
This forecast signals potential challenges for first-time homebuyers. As prices rise, affordability becomes a growing concern, with higher upfront costs for homeownership. The combination of rising property values and mortgage payments, even with lower rates, may limit opportunities for new buyers to enter the market. However, for existing homeowners and investors, the market presents significant opportunities for capital gains as property values climb.
Housing Supply vs. Demand: Evolving Trends in the Rental Market
Recent shifts in Calgary’s rental market suggest a changing landscape for landlords and renters alike. While strong population growth continues to drive housing demand overall, the availability of rental units has seen a notable increase in recent months. Builders have been delivering new housing units at record rates, leading to higher inventory levels and less pressure on renters compared to the peak of the housing crunch.
The current landscape reveals that many properties are taking longer to secure tenants, and rental prices have started to stabilize in several areas of the city. Some neighbourhoods may still experience tight market conditions, but the overall tone in Calgary’s rental market suggests more balanced conditions heading into 2025.
While this surplus may shift again in the spring as population growth continues, current trends highlight a more competitive environment for landlords and investors who must differentiate their properties to attract tenants. Renters, meanwhile, are benefiting from greater choices and slower rent increases compared to recent years.
Impacts on Investors, Homebuyers, and Renters
For investors, Calgary’s evolving market still offers opportunities, particularly in neighbourhoods where demand for rental units remains steady. Rising property values and a growing population can create favourable conditions for long-term gains. However, with increased inventory, strategic pricing and proactive property management will be essential for maximizing returns and maintaining low vacancy rates.
Homebuyers and renters may also experience mixed conditions. Rising prices and competition can still be challenging for homebuyers, especially for those entering the market for the first time. For renters, the broader range of options in the market offers greater flexibility and reduces the pressure of making quick decisions, allowing for a less stressful search process.
As Calgary’s housing market continues to evolve, partnering with a knowledgeable property management team is more valuable than ever. At GIL Property Management, we provide tailored solutions to help investors and renters succeed in a tight market. Contact us today to discuss how we can support your property goals in 2025.
