Calgary & Region Economic Outlook 2012-2017

The City of Calgary has released the spring edition of their semiannual forecast of selected economic indicators for Calgary and region for the period 2012-2017.

Below are some real estate highlights, but be sure to read over the entire 32 page report here, which covers labour, inflation, GDP, Alberta’s & Canada’s economy & more.

Real Estate Highlights

  • Calgary Census Metropolitan Area’s apartment vacancy rate in 2011 was estimated at 1.8%, down from 5.4% in 2009
  • Housing starts are expected to total 8,400 units in 2012 and 9,200 units in 2014. In the early stage of the forecast, housing starts should increase in response to low vacancy rates, higher employment levels and improved housing affordability. Later in the forecast, housing starts should grow in line with the rate of household formation.
  • Total building permit values were estimated at $4.5 billion in 2011, up from $2.9 billion in 2010
  • The weakness in house prices over the 2008-2011 period is partly explained by the labour market recession in 2009 and 2010, where the region experienced reduced employment levels and labour incomes.
  • House prices in Calgary relatively more affordable when compared to some metropolitan areas in Canada. Consequently, relatively affordable housing prices should attract would-be migrants to the Calgary area.
  • The inventory of re-sale housing has trended downwards since 2009. In February 2009, the inventory coverage for re-sale homes was estimated at 7.2 months and as of December 2011, it was 5.4 months

You can read the entire 32 page forecast here

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