Calgary Real Estate Market Split: Apartment Glut vs. Detached Home Scarcity
New data from the Calgary Real Estate Board (CREB) reveals a stark contrast in the city's housing landscape. While apartment-style properties are experiencing significant oversupply, creating favorable conditions for buyers, the detached and semi-detached home markets remain constrained with limited inventory.
Record Apartment Construction Creates Buyer's Market
According to CREB Chief Economist Ann-Marie Lurie, Calgary reported record-high housing starts last year, primarily driven by gains in apartment construction. Nearly 18,000 apartment units are currently under construction across the city. While many of these units are targeted for rental purposes, this substantial supply also impacts the condominium ownership market, tipping the balance in favor of purchasers.
"This oversupply in the apartment sector has created what we would characterize as a buyer's market," Lurie noted. "Meanwhile, on the opposite end of the spectrum, the detached market remains relatively balanced in higher price ranges but continues to struggle with limited supply for homes priced below $700,000."
Tight Conditions in Detached Home Market
The detached property segment tells a different story. In February, detached homes saw 736 sales against 1,269 new listings, resulting in a sales-to-new-listings ratio of 58 percent. Months of supply remained under three months, indicating tight market conditions.
Regional variations are significant within the city. The West district experienced particularly constrained conditions with less than two months of supply, while excess inventory in the Northeast district prevented monthly price improvements.
Market Statistics and Price Trends
February's overall inventory reached 4,822 units, with condominiums and row homes representing more than half of the total. Sales for the month totaled 1,526, marking an 11 percent decline compared to February of the previous year.
Price movements reflected the market divide:
- Apartment-style homes continued to see price declines
- Detached homes showed modest gains with an unadjusted benchmark price of $734,300 (1% higher than January, 3% lower than last year)
- Only the City Centre and West Districts reported both month-over-month and year-over-year gains
The overall residential benchmark price settled at $560,500, representing a 1 percent increase from January but a 4 percent decrease from the previous year. Monthly gains in lower-density homes balanced the pullback in apartment-style units.
Migration Patterns and Market Implications
Lurie pointed to slowing migration levels coinciding with rising apartment supply as a contributing factor to current market conditions. The city-wide market showed balanced conditions at three months of supply with a sales-to-new-listings ratio of 55 percent.
The contrasting dynamics between property types underscore what industry observers describe as 'a collection of micro-markets' within Calgary's broader real estate landscape. While apartment buyers enjoy increased selection and negotiating power, those seeking detached homes—particularly in affordable price segments—face continued competition and limited options.
