Housing Affordability in Edmonton, Canada: 2021 RE/MAX Report

Having you been looking for a home and maybe are thinking "Wow, prices in Edmonton are so high." or "Edmonton houses are so much more affordable compared to..." the 2021 RE/MAX Housing Affordability in Canada Report is out and Edmonton is ranked number four, for affordability for the house price to income ratio by the city in Canada. Edmonton has a median income of $115,020

" EDMONTON first-time homebuyers have been gravitating toward both single-detached and semi-detached homes in 2021. This has shifted from last year, with the increased desire to own a home with a backyard. Another high-demand trend this year is the desire for new homes, as the idea of being the first one to live in it is appealing to buyers. Typically, buyers in Edmonton stay within their budgets when purchasing a home.

When it comes to factors that influence affordability in Edmonton, interest rates, high rental rates, economic/employment conditions, increased housing supply, and legal basement suites would positively impact regional affordability. On the flip side, an increase in housing prices, and the stress test are believed to negatively impact affordability in the area.

The most affordable area of Edmonton is Central North, where a two-bedroom bungalow with a full basement (approximately 900 sq. ft.) would sell for between $160,000 and $190,000. The most expensive area of Edmonton varies on location. Edmonton’s Majestic North Saskatchewan River Valley View properties, as an example, are priced anywhere from $1,500,000 to $5,000,000.

An alternative to individual homeownership that has become relevant in Edmonton since the start of 2021 has been renting out a portion of a principal residence to supplement monthly mortgage payments. In the last three months, Edmonton has seen more multiple-offer scenarios, which is concerning more buyers. This year's unique trend in the Edmonton housing market has been people living within a five- to 10-minute distance of their place of work, for convenience. It is not expected that Edmonton will see the cooling of house prices in the fall and winter of 2021 because of ongoing regional demand."

Read the full report here