Why is Everyone Moving to Alberta? A Real Estate Perspective

Alberta, one of Canada’s most prosperous provinces, has become a hotspot for real estate, attracting an influx of people looking to explore both building their careers and enjoying the high standard of living and the nature-focused quality of life the province offers. The average house price in Alberta is lower than in BC or Ontario, and while Alberta house prices have been rising, Alberta provides a unique blend of opportunity and affordability that is attractive to homebuyers and investors alike. Let’s take a closer look to learn why people are increasingly choosing Alberta as their preferred destination for relocation.

The Average House Price in Alberta Isn’t the Only Thing Driving Interest in the Province

While there are many more, here are just five reasons why people are moving to Alberta:

Community and Lifestyle

Alberta is made up of a diverse set of cultures and communities that boast a variety of world-class services – whether you opt for life in a small, rural town of just a few hundred people – or you pack your bags and head to Alberta’s two most populous cities, Calgary and Edmonton.

There are 45 First Nations in Alberta, with the most commonly spoken First Nations languages being:

• Blackfoot
• Cree
• Chipewyan
• Dene
• Sarcee
• Stoney (Nakoda Sioux)

Alberta’s Francophone population is among the fastest-growing French-speaking populations in Canada, with nearly 87,000 Francophones calling the province home. There are also almost 2,000 communities and natural sites with French-influenced names and four Alberta municipalities officially designated as bilingual.

While Alberta is Canada’s fourth-most populous province, it is also the fourth largest in land mass, meaning that nature is never more than a short drive and often less than a stone’s throw away. In fact, many of the top attractions in Alberta showcase the majesty of nature, from its five national parks and hundreds of glaciers, lakes, and waterfalls to its canyon Badlands, which covers over 90,000 square kilometres.

And when you crave a more urban experience, there’s no shortage of impressive outings you can take in the province’s two major cities or annual festivals you can attend.

Alberta’s Economic Stability

Alberta’s economy is not just about oil anymore. It has undergone significant diversification in recent years, making it less susceptible to the volatile global energy market. The government’s plan to attract investment and create jobs is apparently working, with Alberta seeing billions of dollars in new investment and capital being deployed across the province. Sectors like aerospace, technology and innovation, manufacturing, construction, finance, film and television, agri-food, and renewable energy have grown and attracted a highly skilled workforce. Compared with other provinces, Alberta has a thriving job sector that drives its economic stability.

As of November 2024, the Alberta government projects a $4.6-billion surplus for the fiscal year ending in 2024-25. With the surplus stronger than what was projected in the budget, the government plans to continue to invest in services to support the current population and the more than 450,000 people who have moved to Alberta in the past three years. This includes increased funding for health care and education and record amounts for schools to help manage enrolment growth.

Alberta’s solid fiscal management has not gone unnoticed by international credit rating agencies. Both Moody’s and Fitch Ratings have recently highlighted Alberta’s economic rebound – but despite a less heterogenous economy and an overall positive scorecard – resource volatility, and in particular, any reduction in the price of non-renewable resources or tariffs on the petrochemical sector, could continue to be a risk.

A strong economy with a stable job market creates a consistent demand for housing. People who move to Alberta for employment opportunities require accommodation, increasing the demand for owned and rental properties. By offering secure employment opportunities and supporting a high standard of living, Alberta ensures a continuous demand for real estate.

A Lower Tax Environment and Cost of Living

Not only is there a potential for high earnings in Alberta, but you’ll also keep more of your paycheque since Albertans pay less in overall taxes than other Canadians. Alberta has no provincial capital taxes, payroll, or sales taxes, resulting in significant savings on day-to-day expenses.

Despite the cold winters, utility costs in the province are relatively low due to the local availability of natural resources. This, combined with competitive markets for services such as electricity and gas, helps keep living costs down. People who can afford to live comfortably are more likely to invest in real estate, whether a primary residence or an investment property.

Affordable Real Estate Market

Property prices in Alberta are generally more affordable than in provinces such as British Columbia and Ontario. Cities like Edmonton and Calgary offer excellent value for money.

In October 2024, the average selling price of a home in Edmonton was:

• Overall:$396,800, a 7.8% increase year-over-year.
• Single-family home:$459,900, a 9.3% increase year-over-year.
• Townhouse/multiplex:$268,600, a 13.6% increase year-over-year.
• Condo:$196,000, a 10.5% increase year-over-year.
• Rent: The average rent in Edmonton was $1,584, an 8.0% increase year-over-year.

In October 2024, the average selling price of a home in Calgary was:

• Overall: $577,700, a 5.2% increase from the previous year.
• Single-family home: $681,000, a 7.6% increase from the previous year.
• Townhouse/multiplex: $464,000, a 7.7% increase from the previous year.
• Condo: $346,500, a 10.1% increase from the previous year.
• Rent: The average rent in Calgary was $1,995, a 5.0% decrease from the previous year.

Home prices in Alberta have been increasing but are rising more slowly than the national average, making its housing market more accessible for first-time buyers and investors.

Investment Opportunities in Alberta’s Real Estate Market

Alberta’s real estate market is not just for first-time homebuyers. It also presents many opportunities for investors. Its robust economic growth and a relatively affordable yet steadily appreciating housing market create an environment conducive to real estate investment.

While Alberta’s housing market is currently more affordable than many other provinces, it’s also demonstrating strong potential for future growth. Historical trends suggest a steady appreciation of property values over the years. The expectation of continued economic development and the influx of people to Alberta supports the prediction of ongoing property value appreciation, making real estate investment potentially lucrative in the long term.

Alberta’s thriving job market and high quality of life attract more people to the province, creating a strong demand for rental properties as well. Both Calgary and Edmonton have substantial populations of students and young professionals who prefer renting, making buy-to-let investments a potentially profitable venture in these cities.

Alberta’s growing population is also spurring new residential and commercial development projects. Investing in these new developments can provide excellent opportunities for real estate investors. These new properties often attract premium rental rates and can appreciate in value more quickly than older ones.

The Future of House Prices in Alberta and the Overall Alberta Real Estate Market

The prospects for Alberta’s real estate market look promising. The continued influx of people to the province bears testament to the growing appeal of Alberta, solidifying its position as a thriving real estate hub in Canada. While the average house price in Alberta is expected to appreciate, residences of all types are likely to remain more affordable than many other major Canadian cities, making Alberta an attractive market for first-time buyers and investors. As Alberta continues to evolve and adapt, the province’s real estate market is expected to remain dynamic and resilient in the years to come.

Are you considering making Alberta your new home or investing in one of Canada’s most vibrant real estate markets?

Connect with a RE/MAX agent to help you secure affordable Alberta real estate, and see the difference that adding an experienced real estate professional to your team can make.