The Canadian real estate market appears poised for another steady year in 2015 according to the new Emerging Trends in Real Estate report released by PwC today.
Calgary remains the strongest market in the country and as a percentage of income, housing here is more affordable than the Canadian average and many other cities. (Pg 6, Exhibit 1-4)
Municipal Government to Blame For Rising Prices
The report goes on to state that getting houses built in Calgary has “become extraordinarily difficult. There simply isn’t the manpower, and the municipal government’s decision to focus growth in the northeast and southeast of the city is limiting the availability of lots and pushing up prices. Many housing developers are instead choosing to build outside Calgary in communities such as Airdrie, Chestermere, and Okotoks, which are actively encouraging development.” (Pg 18.)
Richard Goatcher, Economic Analyst at CHBA-Alberta confirms that the data backs PwC’s statement:
— Richard Goatcher (@richardgoatcher) October 28, 2014
Much of Calgary’s economy is natural resource based so the concern for the market is a cyclical downturn and the resulting impact.
If you’re interested in downloading the entire report: click here.