Calgary Housing Affordability: Good News, But the Gains Are Slowing

If you’ve been watching Calgary’s housing market, you’ve likely noticed some breathing room lately. According to RBC Economics’ latest report, home ownership costs have eased for seven consecutive quarters across Canada, with Calgary experiencing meaningful improvements. But there’s a catch—the momentum is starting to fade.

The National Picture

Canada’s aggregate affordability measure improved to 53.2% in the third quarter of 2025, meaning the median household needs to dedicate just over half their income to cover ownership costs. While this is welcome relief from the all-time high of 63.5% in 2023, the latest improvement was the smallest yet in this cycle.

The gains have been driven primarily by Vancouver and Toronto, where prices have been falling this year. Most other markets, including Calgary, saw little change or slightly less favorable conditions.

What This Means for Calgary

Calgary’s housing market tells a more nuanced story. The city’s aggregate affordability measure inched slightly higher to 32.1% in Q3, though it remains close to the long-term average and significantly better than the national figure.

The challenge? Strong demand continues to meet limited supply. Home sales have grown 2% this year, with particular vigor in Western Canada. Calgary benefits from still-strong migration flows and manageable ownership expenses that keep buyer interest steady. However, ongoing supply-demand tightness means home values are positioned to appreciate firmly in the near term, which could erode some of the affordability gains.

Why Improvement Is Slowing

The simple answer: mortgage rates have stabilized. Much of the recent affordability improvement came from falling interest rates, but RBC expects improvement to slow with the Bank of Canada likely on hold through 2026. When rates plateau, further affordability gains depend almost entirely on home price movements and household income trends.

The Bottom Line for Calgary Buyers

Calgary remains one of Canada’s more affordable major markets. The city offers better value than Toronto, Vancouver, or Victoria, while still providing strong economic prospects and quality of life. However, prospective buyers should act knowing that the rapid affordability improvements of the past two years are likely behind us.

With supply constraints and steady demand, prices are expected to continue rising gradually. For those considering a purchase, the window of maximum affordability may be narrowing. The good news? Calgary’s housing market remains relatively balanced compared to other major Canadian cities, giving buyers reasonable opportunities without the extreme competition seen elsewhere.

Data source: RBC Economics Housing Affordability Report, Q3 2025