Five Things Newcomers to Canada Need to Know About Housing in Alberta

Alberta is in the midst of an unprecedented population boom - fuelled in large part by immigration - that is having a direct impact on housing and rent prices.

So, we've come up with five things (below) that we think newcomers to Canada and international students need to know about housing in Alberta.

Alberta is popular and growing. According to annual population estimates released by the Office of Statistics and Information, Alberta was home to 4.8 million people as of January 1, 2024. That is 4.4 percent higher than the same time last year. and adds up to an additional 202,324 people.

Here are the main and most populated cities in Alberta:

Calgary. 1,019,942.
Edmonton. 712,391.
Fort McMurray. 76,000.
Red Deer. Alberta. 73,593.
Lethbridge. Alberta.70,617.

Recently, The Economic Intelligence Unit (EIU) named Calgary as the fifth most livable city in the world, ahead of Vancouver (7th) and Toronto (12th).

So, here are the five things that newcomers to Canada and international students need to know about housing and renting in booming Alberta:

1 - RENT PRICES IN ALBERTA:

According to the recent Rentals.ca National Rent Report about rent prices in May 2024, Calgary has the highest rents in the province. For example, a one-bedroom in Calgary costs $1,733, while a two-bedroom costs $2,140.

Compare that to Vancouver, where a one-bedroom rents for $2,671, or Toronto, at $2,479, and you can see why Alberta is still considered affordable.

A one-bedroom in Edmonton costs $1,367, a two-bedroom costs $1,690. A one-bedroom in Lethbridge costs $1,181, and a two-bedroom costs $1,392.

According to Zumper, as of May 2024, the average rent for a one-bedroom apartment in Red Deer was $1,450. A one-bedroom apartment in Fort McMurray, according to Rentals.ca, was $1,242.

However, while rents in Alberta are well below prices in B.C. or Ontario, they are rising.

For example, the rent for a one-bedroom in Red Deer was up 9 percent over May 2023. Calgary was up 6.2 percent over the same time period, while rents in Edmonton rose 16.3 percent. Lethbridge saw rents rise about 10 percent in a year.

This trend is expected to continue, according to Rentals.ca and Rentsync.

According to the Rentals.ca report, average asking rents in Canada increased 0.7 percent over April 2024 and 9.3 percent annually to reach another record national high of $2,202 in May 2024.

Click on these Alberta cities for some of our current rental listings:

Additional listings for Alberta cities can be found at Mainstreet Equity Corp.

2 - VACANCY RATES IN ALBERTA:

The vacancy rate is the percentage of all vacant or unoccupied units available for rent in Alberta at a particular time. For renters in Alberta, a good vacancy rate (which usually but not always creates possibly lower rent prices for newcomers renting in Canada) is around three percent.

With immigration and interprovincial migration, the vacancy rate in Alberta is declining, which, unfortunately, for newcomers, means higher rent prices.

In fact, the overall decline in the national vacancy rate reflects widespread tightening across all of Canada’s rental markets.

Migration into Alberta turned around sharply in 2024 and was a major driver of rental demand. This turnaround was the result of both higher interprovincial and international migration.

During the pandemic, economic opportunities shrank, and more Canadians moved out than into Alberta.

For example, in Edmonton, with its improved labour market conditions, record net international migration, and net interprovincial migration at a 10-year high, rental demand outpaced increases in supply.

The vacancy rate for purpose-built rental apartments in Edmonton was 2.3 percent in 2023, down from 4.3 percent in October 2022 and 7.3 percent in October 2021.

In Calgary, the vacancy rate dropped to 1.4 from 2.7 percent, the lowest since 2014. Again, record migration into Alberta largely supported rental demand, while increases in supply were not enough to balance it out.

Also, vacancy rates can vary significantly within a city's various neighbourhoods, so be sure to check that out.

So, newcomers should expect low (and falling) vacancy rates across Alberta.

Rental vacancy rates in Alberta from 2020 to 2023

3 - HOUSE PRICES IN ALBERTA:

Housing prices are also rising in Alberta for newcomers looking to buy a home, again driven by the population surge.

According to the WOWA Market Report Summary for April 2024:

Alberta’s benchmark home price* was $513,600, up 9.3% year-over-year.
Average home prices in Alberta have increased by 8.1% in a year to $499,505
Calgary's average home price increased by 11% year-over-year to $608,415.
Edmonton's average home price increased by 5.6% year-over-year to $431,387.
Red Deer's average home price increased 5.0% year-over-year to $378,775.
Lethbridge's average home price increased by 11% year-over-year to $373,176.
Medicine Hat's average home price increased by 0.5% year-over-year to $337,972.
Fort McMurray's average home price decreased by 3.7% year-over-year to $348,886.

The Calgary Real Estate Board reported record-low housing inventory this year, with a supply of just over one month. In May 2024, 3,092 homes were sold in Calgary.

Still, housing in Alberta remains relatively affordable compared to other Canadian regions.

For example, the average home price** in May in Vancouver was $1,348,624, a 2.9 percent increase from May 2023. In Toronto, it was $1,117,400, a decrease of 3.5 percent decrease from May 2023.

Alberta remains a housing bargain.

4 - STUDENT HOUSING IN ALBERTA:

Many of Alberta’s higher education institutions have dedicated housing programs for their students, and some also offer options for families to live on campus.

However, demand by students (domestic and international) across the province for rental accommodation is high and also outstrips demand.

For example, the University of Calgary residences were full in September, with a waiting list nearing 750 students. The Southern Alberta Institute of Technology is also full, with about 100 students on a waiting list.

Student advocates are calling for more purpose-built student residences.

Be aware that on-campus housing options vary by school. So be sure to consult your institution for information about their residence programs, including application deadlines for international students.

Your school can also help you find accommodation if you live off campus. But again, the competition for rental accommodations is fierce, with prices rising each month and vacancy rates decreasing.

Some students opt for short-term rentals (Airbnb) as they continue their search for a longer-term rental.

Renting a room from an Alberta homeowner can also be an option for student

In fact, the University of Calgary has issued an appeal asking Alberta homeowners to consider renting out spare bedrooms. It's estimated by homeshare company Sparrow that there are 12 million unused bedrooms in Canada.

Sparrow and Prepare for Canada recently partnered to provide an easy, safe, and secure room rental program for (international) students. Registration is free.

5 - LIVING IN ALBERTA:

When you find a place to rent in Alberta, you'll need a job/money to pay for it.

A recent Statistics Canada Labour Force Survey showed Alberta's jobless rate in May 2024 was 7.2 percent, compared to 7.0 the month before.

The national unemployment rate was 6.2 percent in May 2024.

Alberta's minimum wage is $15 per hour and the province has not announced plans to increase it.

According to ZipRecruiter, the average salary in Alberta is $50,631 per year or $24 per hour.

Here's a look at various jobs in Alberta and what they pay.

* The benchmark price estimates how much a certain type of home is worth on the MLS®. It is calculated by the Housing Price Index (HPI), an ongoing record that tracks aggregate sales of similar homes for any given area.

** Average sales price measures all properties sold in a given area during a given period. It is calculated by adding up all sale prices for properties purchased during this time period and dividing by the total number of homes sold.

If you have a question, please email us at rentals@prepareforcanada.com

Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

*No AI-generated content was used in the writing of this story, and all sources are cited and credited where possible.