Is Calgary Real Estate a Good Investment in 2025?

Calgary has long been a city of economic reinvention, driven by its natural resources, technological innovation, and robust population growth. As we move deeper into 2025, many investors are asking: Is Calgary real estate a wise investment this year?

In this data-driven analysis, we examine the dynamics of Calgary's housing market, including property values, rental income potential, affordability, and housing demand. Whether you're a seasoned real estate investor or a first-time buyer, this guide provides a practical overview of opportunities and risks in Canada's fourth-largest city.

Is Calgary a Good Market to Invest in Real Estate?

Calgary's economy is showing strong signs of recovery and diversification. Employment growth in Q1 2025 surpassed 3.2%, placing Calgary ahead of cities like Toronto and Vancouver, according to Statistics Canada. The rise in job availability—particularly in tech, energy transition, and logistics—has supported ongoing population growth and boosted the city's real estate appeal.

This economic stability is encouraging investors seeking markets with reliable housing demand and sustainable job creation.

Affordability Compared to Other Canadian Cities

Affordability remains one of Calgary's key selling points. While the average home price in Calgary is around $570,000, it rises to over $1 million in markets such as Vancouver and Toronto.

Buyers and investors looking to enter the Canadian housing market are finding that Calgary provides better value for money—and more property options—without the extreme cost pressures seen in other cities.

Quality of Life and Lifestyle Appeal

Beyond pricing, Calgary delivers a high quality of life. The city offers easy access to nature, a growing cultural scene, and spacious residential neighbourhoods. Communities like Brentwood, Mahogany, and Signal Hill continue to attract both families and young professionals, thanks to their balance of amenities and livability. For investors, this makes Calgary a compelling location where lifestyle preferences align with sustained rental demand.

Is Buying a House in Calgary Worth It?

Property Value Trends and Appreciation

Following a minor price correction in late 2023, Calgary's housing market rebounded steadily through 2024. As of mid-2025, average property values have increased by approximately 6.4% year-over-year, according to data from the Calgary Real Estate Board (CREB). The combination of moderate price appreciation and growing rental yields positions the market favourably for those seeking capital growth over time.

Benefits of Owning Rental Property or Single-Family Homes

Single-family homes remain in high demand, particularly in suburban neighbourhoods where families prioritize space and proximity to schools. For investors, these homes present an opportunity to generate consistent rental income while benefiting from long-term appreciation. Many properties also qualify for legal secondary suites, which can enhance monthly revenue and reduce vacancy risk.

Calgary Neighbourhoods With Investment Potential

Several neighbourhoods in Calgary are standing out for their growth potential in 2025. For instance, Mahogany is gaining popularity for its family-friendly environment and lake community feel. Livingston is catching the eye of investors with its mix of new builds and promising rental yields.

Meanwhile, Legacy is drawing attention for its balance of affordability and infrastructure improvements.

Homes in these areas range from approximately $545,000 to $665,000, making them more accessible than similar properties in other Canadian cities, while offering comparable or better rental income potential.

Interest Rates and Mortgage Accessibility

With interest rates hovering around 4.75%, financing remains a key factor in buyer decision-making. However, Calgary's relative affordability helps mitigate the impact of higher borrowing costs. New buyers are also benefiting from local and provincial programs, such as down payment assistance initiatives and first-time homebuyer tax incentives, which are helping to keep the market accessible.

CREB Snapshot – May 2025

• Benchmark home price: $589,900

• Sales-to-new-listings ratio: 53%

• Average days on the market: 32

See the full report here

These indicators suggest that, while buyers face competition, conditions remain favourable for well-informed investors who are ready to act quickly.

Are Townhouses a Good Investment in Calgary?

Townhouses are proving to be a smart option for those who want to invest at a lower entry point without sacrificing too much space or appeal. Generally priced 20% to 30% lower than single-family homes, townhomes offer lower ongoing maintenance costs and are often located near transit routes or new commercial developments.

Strong Rental Demand

Tenant demand for townhouses has risen, particularly among professionals, young couples, and small families. These units offer a balance between affordability and privacy, which is especially attractive to renters seeking more space than apartments provide but without the price tag of a detached home.

Growth Areas for Townhome Development

Several Calgary suburbs are expanding their townhouse offerings. In places like Belmont, Cornerstone, and Cranston, new developments are underway with modern designs, shared amenities, and family-friendly layouts. These neighbourhoods are well-connected and continue to attract both end-users and investors seeking high-yield, low-vacancy properties.

The Rental Market and Income Potential

Calgary Rental Trends in 2025

The city's rental market remains tight. Average rents in mid-2025 are approximately:

• $1,570 for a one-bedroom unit

• $1,900 for two bedrooms

• $2,300 for three-bedroom homes

These figures, paired with a citywide vacancy rate of about 2.3%, indicate a robust rental environment where well-maintained and well-located units are leasing quickly.

Where Demand Is Highest

Downtown Calgary continues to attract professionals seeking short commutes and urban amenities, while areas like Bridgeland and Kensington are popular among students and young families. Properties near hospitals, universities, and major employers typically experience extremely high occupancy rates, which contributes to a reliable cash flow for property owners.

Tips to Enhance Rental Income

For those seeking to enhance returns, consider features such as legal basement suites, in-unit laundry, and pet-friendly policies. Offering short-term furnished rentals in high-demand areas is another way to increase income, especially during peak relocation seasons. Working with a licensed property manager can also help reduce vacancies and improve tenant satisfaction.

Final Thoughts: Who Should Invest in Calgary Real Estate?

For Growth-Oriented Investors

Investors seeking a market with room for appreciation, stable cash flow, and growing rental demand will find Calgary a strong contender. Its lower price point compared to other Canadian cities means capital can go further, while demographic and economic trends support long-term upside.

For First-Time Buyers

First-time buyers priced out of Vancouver or Toronto are increasingly turning to Calgary as a place to build equity and enjoy a better cost of living. Neighbourhoods such as Skyview Ranch, Copperfield, and Redstone offer homes for under $600,000, making homeownership more attainable while also providing potential for future rental conversion.

What to Watch For

Like any investment, Calgary's real estate market has its risks. These include fluctuations in energy sector employment, possible shifts in national interest rates, and delays in new housing supply due to labour or material shortages. Staying informed with city planning updates, economic forecasts, and housing reports will help mitigate those risks.